Ali Saghafi; Roohollah Farhadi; Mohammad Taghi Taghavi Fard
Volume 12, Issue 45 , April 2015, Pages 9-38
Abstract
According to Prospect Theory, Investors have different behaviors in theprofit and loss situations and indeed their trading behavior is different in bulland bear markets. This study uses quantile regression model (in differentquartiles) and OLS model to estimate beta of 180 firms. Results showed thatfirst, ...
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According to Prospect Theory, Investors have different behaviors in theprofit and loss situations and indeed their trading behavior is different in bulland bear markets. This study uses quantile regression model (in differentquartiles) and OLS model to estimate beta of 180 firms. Results showed thatfirst, equity total risk (standard deviation) increase in Upper quartile andsecond, stocks beta changes in different quartiles and by moving fromquartile 0.25 to quartile 0.75, systematic risk (beta) increases significantly.Linear regression model and Quantile regression model show also thatunexpected variance can explain excess return at least similar to expectedvariance. The results can also be interpreted with both Insight of standardfinance and insight of behavioral finance. In standard finance area, riskreturnpositive relation that exists in upper quintiles is consistent with longrun growth of economy. Moreover, negative relation between return and riskin lower quintiles imply more uncertainty and as a result causing stockreturns to fall. In behavioral finance area, regime-dependent behavior ofslope coefficients is consistent with prediction of Prospect theory ofinvestor’s behaviors around the reference point.
Rahmat Allah Houshmand Zaferanie; Omid Pourheydari
Volume 12, Issue 45 , April 2015, Pages 39-58
Abstract
The purpose of this study is investigation of the type and information content of accounting adjustments of Firms Listed in the Tehran Stock Exchange (TSE). In this regard, in order to measure the information content of accounting adjustments, the mean cumulative abnormal returns before and after the ...
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The purpose of this study is investigation of the type and information content of accounting adjustments of Firms Listed in the Tehran Stock Exchange (TSE). In this regard, in order to measure the information content of accounting adjustments, the mean cumulative abnormal returns before and after the information has been released. The data used, has been extracted from firms listed in the Tehran Stock Exchange (TSE) in the period 1380-1389. A paired comparison test is used for testing of hypotheses and data analyses. The results of the present study showed that there accountings adjustments have been information content to capital markets and the market shows negative reaction to the accounting adjustments. Also, results showed that the Iran capital market shows a negative reaction to accounting adjustment of errors kinds accounting, income and costs transfers; So that the difference in average abnormal returns for these adjustments were %3/41, %3/44 and %4/52. In addition, the results showed that the cumulative abnormal returns before and after the publication of information on the accounting adjustment of type positive accounting errors, there is not a significant correlation, Therefore, we cannot determine that the market reacts to such adjustments or not. In other words, the capital market show not is interpreting reaction to accounting adjustments of positive accounting errors.
Vahid Mollaimani; Mohammad Marfou
Volume 12, Issue 45 , April 2015, Pages 59-80
Abstract
The speed of transferring of accounting information fromtransferors to users is so important that it is mentioned in accountingconceptual framework as a qualitative characteristics of accountinginformation. Barriers and problems discovering in informationchannel between transferors and users not only ...
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The speed of transferring of accounting information fromtransferors to users is so important that it is mentioned in accountingconceptual framework as a qualitative characteristics of accountinginformation. Barriers and problems discovering in informationchannel between transferors and users not only can Accelerates thetransmission of information but also can benefit users more. In thisresearch we investigate the relationship between disclosure qualityand audit report lag for 164 companies of Tehran Stock Exchangebetween the years of 1387 to 1391. We use disclosure quality ranking,management forecast error and prior period adjustments as therepresentatives of disclosure quality and test them with audit reportlag in E views and SPSS software. The findings of panel analysisshows that there is a significant negative relationship between auditreport lag and dependent variables, management forecast error andprior period adjustments. The final result shows a positive relationshipbetween disclosure quality and audit report lag. Furthermore there issignificant negative relationship between company size and auditreport lag and there is no relationship between auditor sizes, havinggood news or bad news and company debts with audit report lag
Naser Izadiniya; Naser Izadiniya
Volume 12, Issue 45 , April 2015, Pages 31-80
Abstract
In this study ,the impact of highly valued equity on the relationbetween audit quality and Discretionary Accruals in the companieslisted in Tehran Stock Exchange is investigated .Audit quality ismeasured by using of the audit firm size, audit industry specialization,the length of the auditor-client relationship ...
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In this study ,the impact of highly valued equity on the relationbetween audit quality and Discretionary Accruals in the companieslisted in Tehran Stock Exchange is investigated .Audit quality ismeasured by using of the audit firm size, audit industry specialization,the length of the auditor-client relationship and industry specialistaudit firms with long tenure. Also, Discretionary Accruals is estimatedusing the Jones model (1991). The results of investigating a sample of153 firms during the years of 1386 to 1392 shows that interactioneffect of highly valued equity and audit quality proxies is positive andsignificant. This means that, magnitude of the negative effect of auditquality on the discretionary accruals in the highly valued firmsdecreases and high quality auditors not reducing amount ofDiscretionary Accruals in highly valued firms. Thus, in thenegotiation between auditors and managers about preparation offinancial statement in the highly valued equity, managers by using ofbetter information about its firm can success on auditors.
Hassan Farajzadeh Dehkordi; Leila Aghaei
Volume 12, Issue 45 , April 2015, Pages 97-114
Abstract
This paper investigates the relation between fraudulent financialreporting and firms’ dividend policies. Specifically, this researchconcentrated on situations that it is possible to classify financialrestatement into fraudulent and non-fraudulent based on themanagement’s incentives for discretionary ...
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This paper investigates the relation between fraudulent financialreporting and firms’ dividend policies. Specifically, this researchconcentrated on situations that it is possible to classify financialrestatement into fraudulent and non-fraudulent based on themanagement’s incentives for discretionary accounting choices .The data is related to 247 firms (consisted of 2,238 firm-yearobservation) during 1381-1390. A Meet-or-beat model was used toclassify firms as making discretionary accounting choices foropportunistic meet-or-beat. Furthermore, a fixed effects logisticregression with panel data was used to test hypothesis. Results showthat dividend-paying firms have less likelihood to engage infraudulent financial reporting furthermore, the negative associationbetween dividend paying status and fraudulent financial reporting isstronger when the size of dividend payouts is larger .Overall, resultssuggest firm’s dividend policy is indicative of its earnings quality.Specifically, dividend policy unfolds the manager’s incentives forfinancial restatements.
Mohammad Banafi; Ali Ghayouri Moghadam; Mohammad Mehdi Dana
Volume 12, Issue 45 , April 2015, Pages 115-134
Abstract
The aim of this research is to find out whether Related Parties Transactions can produce a meaningful influence on the agency cost or not. To answer this question two definitions of agency cost are employed: Tobin’s Q Ratio and mutual relationship between the chance of development and free cash ...
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The aim of this research is to find out whether Related Parties Transactions can produce a meaningful influence on the agency cost or not. To answer this question two definitions of agency cost are employed: Tobin’s Q Ratio and mutual relationship between the chance of development and free cash flow. Having these two definitions in mind we studied the effects of transactions with Related Parties on the agency cost. We studied 55 companies involved in Tehran Stock market Exchange (TSE)The results show that when we measure the agency cost using Tobin’s Q Ratio, the effect of the transactions with Related Parties on the agency costs is positive and meaningful but when the second measurement that is, the relationship between the chance for development and the free cash flow, is applied the influence is not meaningful. The findings show that Related Parties Transactions is in accordance with conflict of interest theory, this means that transactions can reinforce the opportunistic behavior of the managers, result in the destruction of the interest and disadvantage the owners.
Vahid Molla Imeny; Mohammad Marfou
Abstract
The speed of transferring of accounting information from transferors to users is so important that it is mentioned in accounting conceptual framework as a qualitative characteristics of accounting information. Barriers and problems discovering in information channel between transferors and users not ...
Read More
The speed of transferring of accounting information from transferors to users is so important that it is mentioned in accounting conceptual framework as a qualitative characteristics of accounting information. Barriers and problems discovering in information channel between transferors and users not only can Accelerates the transmission of information but also can benefit users more. In this research we investigate the relationship between disclosure quality and audit report lag for 164 companies of Tehran Stock Exchange between the years of 1387 to 1391. We use disclosure quality ranking, management forecast error and prior period adjustments as the representatives of disclosure quality and test them with audit report lag in Eviews and SPSS software. The findings of panel analysis shows that there is a significant negative relationship between audit report lag and dependent variables, management forecast error and prior period adjustments. The final result shows a positive relationship between disclosure quality and audit report lag. Furthermore there is significant negative relationship between company size and audit report lag and there is no relationship between auditor sizes, having good news or bad news and company debts with audit report lag.
Abstract
While perior studies faild to document a meaningful relationship between financial restatement, as a measure of earnings quality, and firms’ dividend paying policy, the purpose of the present study is to reinvestigate this relationship by classifying financial restatements into opportunistic and ...
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While perior studies faild to document a meaningful relationship between financial restatement, as a measure of earnings quality, and firms’ dividend paying policy, the purpose of the present study is to reinvestigate this relationship by classifying financial restatements into opportunistic and non-opportunistic based on management incentives in using discretionary accruals. The data is related to 247 firms (consisted of 2,238 firm-year observations) during 1381-1390. A Meet-or-beat model was applied to determine opportunistic financial reporting. Furthermore, a fixed effects logistic regression with panel data was used to test hypothesis. Results show that dividend-paying firms have less likelihood to engage in opportunistic financial reporting through fincial restatements. Furthermore, the negative association between dividend paying status and opportunistic financial reporting is stronger when the size of dividend payouts are larger. Overall, results suggest firm’s dividend policy is indicative of its earnings quality. Specifically, dividend policy unfolds the manager’s incentives behind the financial restatements.
roohollah farhadi
Abstract
According to Prospect Theory, Investors have different behaviors in the profit and loss situations and indeed their trading behavior is different in bull and bear markets. This study uses quantile regression model (in different quartiles) and OLS model to estimate beta of 180 firms. Results showed that ...
Read More
According to Prospect Theory, Investors have different behaviors in the profit and loss situations and indeed their trading behavior is different in bull and bear markets. This study uses quantile regression model (in different quartiles) and OLS model to estimate beta of 180 firms. Results showed that first, equity total risk (standard deviation) increase in Upper quartile and second, stocks beta changes in different quartiles and by moving from quartile 0.25 to quartile0.75, systematic risk (beta) increases significantly. Linear regression model and Quantile regression model show also that unexpected variance can explain excess return at least similar to expected variance. The results can also be interpreted with both Insight of standard finance and insight of behavioral finance. In standard finance area, risk-return positive relation that exists in upper quintiles is consistent with long run growth of economy. Moreover, negative relation between return and risk in lower quintiles imply more uncertainty and as a result causing stock returns to fall. In behavioral finance area, regime-dependent behavior of slope coefficients is consistent with prediction of Prospect theory of investor’s behaviors around the reference point.
mehdi nirzaie; naser izadinya
Abstract
In this study ,the impact of highly valued equity on the relation between audit quality and Discretionary Accruals in the companies listed in Tehran Stock Exchange is investigated .Audit quality is measured by using of the audit firm size, audit industry specialization, the length of the auditor-client ...
Read More
In this study ,the impact of highly valued equity on the relation between audit quality and Discretionary Accruals in the companies listed in Tehran Stock Exchange is investigated .Audit quality is measured by using of the audit firm size, audit industry specialization, the length of the auditor-client relationship and industry specialist audit firms with long tenure. Also, Discretionary Accruals is estimated using the Jones model (1991). The results of investigating a sample of 153 firms during the years of 1386 to 1392 shows that interaction effect of highly valued equity and audit quality proxies is positive and significant. This means that, magnitude of the negative effect of audit quality on the discretionary accruals in the highly valued firms decreases and high quality auditors not reducing amount of Discretionary Accruals in highly valued firms. Thus, in the negotiation between auditors and managers about preparation of financial statement in the highly valued equity, managers by using of better information about its firm can success on auditors.
