Ahmad Zariffard; Hamed Mehrjoo
Volume 2, Issue 8 , January 2005, Pages 1-27
Abstract
In this paper the principle subject is to survey the short-run return of initial public offering (IPO) in Tehran security exchange market. Three empirical patterns are documented and analyzed: short-run underpricing, hot issue markets and long-run underperformance. In this article the IPOs in Tehran ...
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In this paper the principle subject is to survey the short-run return of initial public offering (IPO) in Tehran security exchange market. Three empirical patterns are documented and analyzed: short-run underpricing, hot issue markets and long-run underperformance. In this article the IPOs in Tehran stock exchange market since 1378 to 1382 are analyzed. In this period market has extended very much and many IPOs entered it.
In the period in question, the results of this paper indicate that the short-run return of IPOs is higher than the short-run return of the market. This observed pattern is similar to other markets performance around the world. Moreover, the influence of some factors on the underperformance of IPOs is analyzed. Among these factors, only audit firms have influenced the underperformance of IPOs in Tehran market. But considering the joint effect of this factors, also audit firms lost her effect and no one of these factors can explain the observed pattern (underperformance of IPOs) i n Tehran stock exchange.
Jafar Babajani
Volume 2, Issue 8 , January 2005, Pages 29-53
Abstract
In the middle of year l 383, universities and research institutions of Iran regained their independence. According to article 49 of the forth plan act, the financial and administration affairs of universities will be directed by approved boards of trustee's regulations , starting at ...
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In the middle of year l 383, universities and research institutions of Iran regained their independence. According to article 49 of the forth plan act, the financial and administration affairs of universities will be directed by approved boards of trustee's regulations , starting at the beginning of year 1384. These legal facilities provide the best opportunity for chief executives of universities and research institutions in order to change old financial and administration systems and establish the new structures. As a matter of fact, the big challenge that universities’ managers are facing during this time, is to find ways to accommodate and exploit changes. The concepts of empowerment and innovation summarize many of the current ways management is doing this. Empowerment involves requiring all staff to make decisions that will produce desired results. Innovation involves encouraging staff to continuously improve products and services and reduce their cost. Empowerment and innovation emphasize mainly obtaining results and often reducing controls. In short, if universities use all aspects of these legal facilities and solve their problems, we can consider it as an opportunity, otherwise it is assumed to be a threat.
Yahya Hassas Yeganeh; Ruhollah Rajabi
Volume 2, Issue 8 , January 2005, Pages 55-86
Abstract
A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays ...
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A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays this function in most countries is performed by audit profession as a society whole agent. Auditors act in the interest of primary stakeholders, whilst having regard to the wider public interest. . Effectiveness of audit function strongly depends on professional power of auditors. Professional power provides auditor the ability to influence clients' behavior regarding financial reporting to comply with Generally Accepted Accounting Standards, otherwise ability to disclose disagreements and other reportable conditions in their audit reports. As a result this ability helps auditors serving public interest. Professional power supports auditor resolving conflicts between them and their clients regarding proper accounting treatment, presentation, disclosure, etc. The main objectives of this research was to recognizing some aspects of professional power of independent audit in Iran, factors affecting professional power and appraisal of audit profession practitioners of factors current situation. Research finding show that professional power affects from wide range of factors and practitioners are not satisfied with current situation of them. Finally based on research findings some suggestions have been made both for application and future researches.
Ali Saghafi; Saber Sheri
Volume 2, Issue 8 , January 2005, Pages 87-120
Abstract
This Study is aimed at examining the usefulness of financial statements information. In particular, usefulness criteria of financial statements depend upon relevance and predictive ability.
So far many models and hypotheses have been developed in order to evaluate and predict stock return through different ...
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This Study is aimed at examining the usefulness of financial statements information. In particular, usefulness criteria of financial statements depend upon relevance and predictive ability.
So far many models and hypotheses have been developed in order to evaluate and predict stock return through different viewpoints. A large number of empirical accounting researches have been done in order to achieve this goal. Different groups of investors and decision makers are interested in evaluation and prediction of Stock return.
This guided research procedure is different from the mere statistical searches because, we have chosen the fundamental variables through theory and famous models. We developed Samuel Stewart’s model and ended up selecting 42 independent Variables (fundamentals). Eighty two listed companies were selected from Tehran Stock Exchange. The selection was done from various industries.
Regression cross-sectional models were developed for the firms within the years 1374 to 1380; 1378 to 1380 and, for each single year of the research period.
We constructed the following hypotheses:
1- The financial Statements information has ability to predict stock return.
2- Using Accounting models for selected industries, industries, increase the predictive ability of financial statements information.
3- Using models based upon sign of variables increase the predictive ability of financial statements information.
Conclusion:
The concluding results of this study, confirms the predictive ability of accounting information. Variables such as rate of return on assets (ROA), rate of return on investments (ROI), growth of sales to total assets ratio (GSTTA), growth of net income to sales ratio (GNITS) and financial expenses to sales (FEXTS), have had the most influence among 9 regressed models, in prediction of stock return.
The performance of models in short run was better than long run. Using models for special selected industries (drug and chemical; mineral and cement) improved the predictive ability of our selected variables. But the models based on sign of variables did not increase the predictive ability of the models.
Iraj Noravesh; Mehdi Heidari
Volume 2, Issue 8 , January 2005, Pages 121-151
Abstract
In order to examine information content of three performance measures of CVA, OP, OCF, we pose two questions as follows:
1. Does Cash Value Added (CVA) explain annual stock return variations better than Operating Profit (OP) and Operating Cash Flow (OCF)?
2. Does Cash Value Added (CVA) have information ...
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In order to examine information content of three performance measures of CVA, OP, OCF, we pose two questions as follows:
1. Does Cash Value Added (CVA) explain annual stock return variations better than Operating Profit (OP) and Operating Cash Flow (OCF)?
2. Does Cash Value Added (CVA) have information content more incrementally than Operating Profit (OP) and Operating Cash Flow (OCF)?
The time period and number of samples respectively is 1378-1382, 110 company in four industry: Nutrition, Chemical, Automobile and nonmetal minerals. Current research hypothesis tested as follows: the hypothesis tested through regressed pooled time series, cross-sectionally for each industry and the selected firms’ totals, that is, computing correlation coefficient and determinant coefficient.
Current research results show:
By the except ion of Chemical and Automobile industries, the existence of significant relation between cash value added and annual stock return in other industries and in level of the selected firms totals verified.
By the exception of Chemical industry, the relative information content
of cash value added (CVA) in other industries, and in level of the selected firms totals much than operating profit(OP) and operating cash flow(OCF) i.
By the exception of Chemical industry, the information content of cash value added (CVA) in other industries, and in level of the selected firms totals relative to operating profit (OP) and operating cash flow(OCF) was incremental.
