D. Forooghi; N. Hamidian; M. Mohammadian2F
Abstract
AbstractThe present study aims at investigating the influence of earnings quality measures on excess stock return and the capability of each one of those measures in explanation for this excess. For so doing, in the current research, eight measures for earnings quality in four total categories have been ...
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AbstractThe present study aims at investigating the influence of earnings quality measures on excess stock return and the capability of each one of those measures in explanation for this excess. For so doing, in the current research, eight measures for earnings quality in four total categories have been used: time series measures (persistence and earnings predictability), smoothness measures (volatility of earnings or accruals to operating cash flows volatility), accruals-based measures (abnormal accruals and accruals quality) and market-based measures (earnings response coefficient and value relevance). Research sample consists of 62 firms listed in Tehran Stock Exchange in time interval of 1376-1392 (1997-2013). Findings indicate that among measures for earnings quality, accruals-based measures and value relevance have negative and significant influence on the absolute of excess stock return. Time series measures, accruals volatility to operating cash flows volatility (earnings smoothing), and earnings response coefficient have significant but positive influence on the absolute of excess stock return. Furthermore, earnings volatility to operating cash flows volatility (earnings smoothing) does not have significant influence on the absolute of excess stock return. Also, among the Criteria for earnings quality, accruals-based measures have more ability than other measures in explanation of the absolute of excess stock return.
Ali Ghasemi; Mohammad Reza Nikbakht
Abstract
This study examines the impact of stock overvaluation on abnormal stock returns and their volatility over time in listed companies of Tehran Stock Exchange. To measure stock overvaluation, Rhodes-Kropf et al (2005) research and to measure abnormal stock returns and their volatility over time, the Fama ...
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This study examines the impact of stock overvaluation on abnormal stock returns and their volatility over time in listed companies of Tehran Stock Exchange. To measure stock overvaluation, Rhodes-Kropf et al (2005) research and to measure abnormal stock returns and their volatility over time, the Fama and French (1995) three-factor model has been used. The population of this study, included of 64 companies in listed companies of Tehran Stock Exchange was selected systematically, and ten-year period from 2005 to 2014 was used for the statistical & necessary tested on them. The results using multivariate linear regression using panel data and fixed effects approach suggest that stock overvaluation has a positive and significant impact on abnormal stock returns and volatility of in over time. In other words, by increasing the stock over valuation over time, abnormal stock returns and their volatility significantly increased. It is recommended to business executives by providing the necessary background for a realistic evaluation of the stock, the necessary fields in order to reduce the abnormal returns of stocks and their volatility to bring over time.
M.H. Setayesh0F; M. Ebrahimi Maimand1F
Abstract
Today companies try to say that they are a good investment choice and Attempt to improve firm value by disclosure of information. In this study relationship between ownership by different types of institutional investors - including Dedicated, Quasi-Indexing and Transient institutions - and disclosure ...
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Today companies try to say that they are a good investment choice and Attempt to improve firm value by disclosure of information. In this study relationship between ownership by different types of institutional investors - including Dedicated, Quasi-Indexing and Transient institutions - and disclosure quality, is examined. For this purpose data from 103 companies listed in Tehran Stock Exchange for period of 2007 to 2012 was analyzed using the logistic regression model. Companies’ score for disclosure, issued by Security and Exchange Organization, is used to measure the disclosure quality. Results show that quality of disclosure is different for companies owned by different types of institutions. Results show that there is direct and significant relationship between ownership by dedicated institutions and quality of disclosure, and ownership by Transient institutions and quality of disclosure are in an indirect significant relationship. Also there were no significant relationship between Quasi-indexing institutions and quality of disclosure
Gholamreza karami0F; Maryam farajzadeh1F
Abstract
AbstractThe purpose of the present study is to investigate the relationship between information asymmetry and mispricing of accruals in Tehran Stock Exchange. Hence, we hypothesize that there is a significant positive relationship between the level of information asymmetry and mispricing of accruals. ...
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AbstractThe purpose of the present study is to investigate the relationship between information asymmetry and mispricing of accruals in Tehran Stock Exchange. Hence, we hypothesize that there is a significant positive relationship between the level of information asymmetry and mispricing of accruals. We implement Mishkin test and classification of portfolios method to respectively investigate whether there is any mispricing of accruals and its relationship with information asymmetry. Furthermore, the indirect balance sheet approach and bid-ask spread have been utilized to measure respectively accruals and information asymmetry. Thus, information of 82 entities during the time span of 5 years between 2008 to 2012 have been analyzed to test our hypothesis. The results depict that as the level of information asymmetry enhances, the difference between coefficients of predictions and evaluation of accruals in the Mishkin test increases. In other words, as the level of information asymmetry increases, the mispricing of accruals intensifies.
Elnaz Tajvidi0F; Hamideh Esnaashari; Ahmad Haj Noruzi
Abstract
AbstractOne of the most considered discussions in recent years is managementdecision about expense. Traditionally, profit analysis models haveassumed expense behavior depends on production and sales volatility.Although researches which are done in the 90s show holding thisassumption is not true. So these ...
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AbstractOne of the most considered discussions in recent years is managementdecision about expense. Traditionally, profit analysis models haveassumed expense behavior depends on production and sales volatility.Although researches which are done in the 90s show holding thisassumption is not true. So these kinds of conclusions cause trying toanswer why such behavior occurs. This Research Examines theRelationship Between prior sales Changes and Asymmetric ExpenseBehavior and Positive or Negative Management attitude effect on it.In order to measure of asymmetric expense behavior, backing researchliterature, current relationship between sg & a changes and saleschanges is utilized; sales changes relating to two last periods arecalculated as a proxy for management attitude too. So 105corporations' financial data listed on Tehran Stock Exchange (TSE)are collected (1050firm-year) during 1383 to 1392. OLS – fixed effectmethod is used to analysis data. the results reveal that expense behavein asymmetric manner; prior sales changes has positive relationshipwith expense asymmetric behavior by reducing uncertainty; andmanagement attitude can moderate the effect of it on AsymmetricExpense Behavior. As a Consequence, Positive Attitude Strengthenthe positive Relationship between Prior sales changes and ExpenseAsymmetric Behavior and Negative Attitude causes more SymmetricExpense Behavior
Mohammad Hossein Safarzadeh; Ahmad Saghafi Pour1F
Abstract
AbstractThis research investigates the impact of accounting conservatism on the stock market’s valuation of nonrecurring gains and losses. The sample is comprised of 126 publicly traded firms listed in Tehran Stock Exchange (TSE) during 1386-1392. The nonrecurring gains and losses, also known as ...
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AbstractThis research investigates the impact of accounting conservatism on the stock market’s valuation of nonrecurring gains and losses. The sample is comprised of 126 publicly traded firms listed in Tehran Stock Exchange (TSE) during 1386-1392. The nonrecurring gains and losses, also known as special items, have asymmetric market valuation multiples, which are proxied by the earnings response coefficient (ERC) in this research. The results show that: (1). an asymmetry exists in the valuation of nonrecurring gains and losses; and (2) the asymmetry can be explained by the idea of accounting conservatism, which is the tendency that firms report economic losses on a timelier basis than economic gains. The above findings show that nonrecurring losses have a higher earnings response coefficient than nonrecurring gains, due to the fact that nonrecurring losses (non-operational losses) are impounded in earnings much quicker than the gains (non-operational gains). Furthermore, as the level of conservatism increases within a firm, this asymmetry of market valuation becomes larger, signifying that the information content of negative nonrecurring items increases at a rate greater than that of positive nonrecurring items
Yahya Kamyabi; Esmail Tavakolnia
Abstract
AbstractRelations in the analysis of CVP, implies a linear relationship between sales, costs and profit. However, recent studies have documented a significant non-linear behavior of costs and profit, and cost stickiness is one of the most important behavior. Cost stickiness requires considerable conceptual ...
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AbstractRelations in the analysis of CVP, implies a linear relationship between sales, costs and profit. However, recent studies have documented a significant non-linear behavior of costs and profit, and cost stickiness is one of the most important behavior. Cost stickiness requires considerable conceptual changes in CVP model, which refers to conceptual and empirical limitations of this model. Therefore, this study uses the data of 140 companies listed in Tehran’s Stock Exchange over the 1385 to 1392 period to present the asymmetric model of CVP analysis, and enters cost stickiness into the equation. The results of the study showed that the standard model of CVP requires adjustment of cost stickiness, in case of using Anderson et al. (2003) model, and total amounts of revenues and costs, due to the lack of their efficacy of earnings management measures relating to the changes of classification. In other words, given the realized sales level, the profit is less if the sales level has increased compared to the prior period, than when the sales level has decreased compared to the prior period.
Abstract
This research investigates the impact of accounting conservatism on the stock market’s valuation of nonrecurring gains and losses. The sample is comprised of 126 publicly traded firms listed in Tehran Stock Exchange (TSE) during 1386-1392. The nonrecurring gains and losses, also known as special ...
Read More
This research investigates the impact of accounting conservatism on the stock market’s valuation of nonrecurring gains and losses. The sample is comprised of 126 publicly traded firms listed in Tehran Stock Exchange (TSE) during 1386-1392. The nonrecurring gains and losses, also known as special items, have asymmetric market valuation multiples, which are proxied by the earnings response coefficient (ERC) in this reseach. The results show that: (1). an asymmetry exists in the valuation of nonrecurring gains and losses; and (2) the asymmetry can be explained by the idea of accounting conservatism, which is the tendency that firms report economic losses on a timelier basis than economic gains. The above findings show that nonrecurring losses are have a higher earnings response coefficient than nonrecurring gains, due to the fact that nonrecurring losses (non-operational losses) are impounded in earnings much quicker than the gains (non-operational gains). Furthermore, as the level of conservatism increases within a firm, this asymmetry of market valuation becomes larger, signifying that the information content of negative nonrecurring items increases at a rate greater than that of positive nonrecurring items.
Hamideh Esnaashari; elnaz tajvidi; ahmad hajnoruzi
Abstract
One of the most discussion is considered in recent years is management decision about expense. In traditional way, profit analysis models have assumed expense behavior depends on production and sales volatility. Although researches which are done in the 90s show holding this assumption is not true. So ...
Read More
One of the most discussion is considered in recent years is management decision about expense. In traditional way, profit analysis models have assumed expense behavior depends on production and sales volatility. Although researches which are done in the 90s show holding this assumption is not true. So these kinds of conclusions cause trying to answer why such behavior is seen. This Research Examines the Relationship Between prior sales Changes and Asymmetric Expense Behavior and Positive or Negative Management attitude effect on it. in order to measure of asymmetric expense behavior, backing research literature, current relationship between sg&a changes and sales changes is utilized; sales changes related to two period ago is calculated as a proxy for management attitude too. So 105 corporations' financial data listed on tehran stock exchange (tse) are collected (1050firm-year) during 1383 to 1392 using certain criteria. OLS – fixed effect method is run to analysis data. the result reveal that expense behave in asymmetric manner; prior sales changes has positive relationship with expense asymmetric behavior by reducing uncertainty; and management attitude can moderate the effect of it on Asymmetric Expense Behavior. As a Consequence, Positive Attitude Strengthen the positive Relationship between Prior sales changes and Expense Asymmetric Behavior and Negative Attitude causes more Symmetric Expense Behavior.
Abstract
This study examines the impact of stock overvaluation on abnormal stock returns and their volatility over time in listed companies of Tehran Stock Exchange. To measure stock overvaluation, Rhodes-Kropf et al (2005) research and to measure abnormal stock returns and rheir volatility over time, the Fama ...
Read More
This study examines the impact of stock overvaluation on abnormal stock returns and their volatility over time in listed companies of Tehran Stock Exchange. To measure stock overvaluation, Rhodes-Kropf et al (2005) research and to measure abnormal stock returns and rheir volatility over time, the Fama and French (1995) three-factor model has been used. The population of this study, included of 64 companies in listed companies of Tehran Stock Exchange that through sampling removed & systematically, and ten-year period from 2005 to 2014 for the statistical & necessary tested on them. The results by using multivariate linear regression using panel data and fixed effects approachsuggest that stock overvaluation has a positive and significant impact on abnormal stock returns and volatility of in over time. In other words, by increasing the stock over evaluation over time, abnormal stock returns and their volatility significantly increased. It is recommended to business executives by providing the necessary background for a realistic evaluation of the stock, the necessary fields in order to reduce the abnormal returns of stocks and them volatility to bring over time.
