Empirical Studies in Financial Accounting

Abstract The objective of this research is to determine the extent to which shareholders' rights are observed. To this end, a questionnaire of 26 questions was designed according to the second OECD principle of corporate governance and was distributed among the university professors, directors and CEOs of investment companies, qualified auditors and financial experts. 108 completed questionnaires were collected and analyzed using binominal test, T student, and Friedman test for ranking. The tests showed that shareholders' rights are not observed in Tehran Stock Exchange listed companies. Subsequently, using Friedman test, the extent to which the 7 elements of shareholders rights under the present circumstances, the order of importance of these elements in view of the participants   in the survey, as divided by the 4 groups of participants are determined.

Abstract According to Agency Theory, when size, debt leverage and salaries of personals is increased, the probability of voluntary choice of qualified auditor will be increased. Therefore, we selected 342 listed companies in Tehran Stock Exchange (TSE). We examined a selection of qualified auditors when the variable is changed. The result of this research shows no relation between debt and salaries, and selection of qualified auditors. We   used De. Angelo (1981) modified Auditing qualified index for the selection of auditors.

Abstract This  research  investigates   the  factors  affecting  on auditors'   decision  making and   individual   characteristics in  applying   Decision   Aid   for  management fraud   risk   assessment.    This   study   focuses on problems    with   applying Decision    Aid   and   classification    of effective factors.   This   research   also investigates   the effects of four independent   variables on applying   Decision Aid by auditors.  The  results  indicate  that  Perceived   usefulness,   conformity pressure,  big  client  size,  low confidence   and Decision  Aids  reliance  are the most  effective   factors   in  order  of  degree  of  importance.   And  lack  of  the above  mentioned   factors  are causes  for avoiding  of Decision  Aid application in audit  process.  Except for confidence   variable, other independent variables have a direct effect on dependent variables.  Perceived usefulness   is the most effective variable.

Abstract This study has investigated the IPOs’ long-term performance, in Tehran Stock   Exchange. The purpose of this study was to examining if IPOs underperform in long-term.  Furthermore,    this  study   has  investigated    the effects  of some  features  of IPO  firms on IPOs’ long-term  performance   (e.g. size  and  profitability   of  the  firm  before  the  IPOs, ownership   structure   and IPOs'  short-term   returns  ). The sample   included   143 IPOs in Tehran Stock Exchange   from 1376 to 1386. The results show that IPOs in Tehran Stock Exchange   under-performs    in long-run.   There   is a negative   and significant relationship   between   size and the profitability of the firms before the IPO and IPOs' long-run performance. State-ownership and structure of ownership have no effects on long-term performance. Finally, there is no relationship between short-term return and long-term performance of IPOs.

Abstract This article aims at identifying effective variables of macroeconomic on Tehran Stock Exchange returns. Variables which have been used to do the hypothesis test are Interest Rates, Interest Rates growth, GOP, GOP growth, Oil Prices and growth of Oil Prices. These variables have been considered as independent variables. The stock market return has been used as dependent variable. The measurement scope is over the period 1376-1385. The research shows that stock market return is relative to only interest rate.

Abstract Prediction   in financial   affairs especially   in securities   is highly   important. Investors make wide evaluations  while investing on stocks. One of the main factors considered   by investors during their investments   is to earn returns.  In such circumstances,   a suitable  prediction   model  for stock  returns  will cause the allocation of optimal resources  and efficiency  in capital  market  which are important   issues individually   and  nationally. Recent article addresses the way of predicting stock returns in Tehran Stock Exchange by using Arbitrage multiple  regression  model and artificial neural networks. The variables  of the research  includes 971 samples  of four daily  macro-economic variables namely TSE  Dividend and  Price  Index  (TEDPIX), gold prices, currency exchange rate (Rial/$)  and  the amount of  transactions between Iranian  calendar  years  1381 and 1385 (2002-2006). To process Arbitrage pricing model, multi-factor regression and to process artificial neural networks (ANNs), Perceptron architecture model with two hidden layers and back-propagation algorithm with sigmoid conversion functions are applied. To assess the performance of both models, mean absolute deviation (MAD), mean square error (MSE), mean absolute percentage error (MAPE) and root mean square error (RMSE) are utilized. The findings show the success of both models in predicting cash return index and Tehran Stock  Exchange prices  as  well  as  the  superiority of artificial neural network  over Arbitrage  multiple  model.