Year:2005 | Volume:22 | Issue:2 (43)|Papers Count:17

In this article, the mathematical model for portfolio optimization proposed by Speranza is studied using financial management. The strength and weakness of the model is investigated and a new model is designed by using expected rate of return and minimum risk.The inputs of the new model consist of different types of investment that an investor is able to and desires to consider in her/his portfolio. A heuristic method is applied to a sample from the investments randomly selected from Milan Stock Market. It has been shown how the mathematical programming may be applied for real world financial decision making problems.Finally it is verified that the new model and the proposed heuristic procedure solve the  problem faster with lower undesired risks.

This paper studies the usefulness of independent auditor's report from financial managers' point of view of the Iranian quoted companies in Tehran's stock exchange. The results of this study indicate that financial managers of the sampled firms view the independent auditor's report as having an important role in discovering and reducing the possibilities of irregularities, frauds and in evaluating the basis of accounting estimates. Results also show that the role of the independent auditor's report does not improve internal controls or help discovering and reducing errors and providing a basis for assessment of going concern concept.

This article attempts to study the relationship between accounting information and market risks among Iranian companies in the Tehran Stock Market. It tries to examine the relationship between the systematic risk and some of the financial ratios – current assets and current liabilities, net income to stockholders, sales - and debt to the stockholders, and the total assets which are symbols of accounting information in the systematic market risk of the Tehran Stock Exchange. The hypotheses related were tested by different statistical methods such as simple and multiple linear regressions, and the T-student test. The result of the study shows that there is no meaningful relationship between the accounting information and the market risks of the companies. This, in turn, shows that in Iran the available historical information concerning accounting is not reflected in the prices of the stock exchange. In other words, the Tehran Stock Exchange does not have the necessary efficiency.

Target costing represents a set of management tools and methods designed to direct and planning activities for new products, providing a basis for controlling subsequent operational phases, and ensuring that products achieve given profitability targets throughout their life cycle. Before adopting target costing, it is important to determine whether the firm's environment is changing in ways that support the adoption of the technique, and whether the benefit's exceed the costs.The importance of profit management, the difficulty of satisfying customer, the importance of product design, the nature of supplier relations, the relative importance of cost management, and finally, the ability to create the right organizational context are the factors which influence the target costing process. In this research, we investigated the above environmental factors influencing the need for implementation of target costing & value engineering in Irankhodro Co. as the biggest automaker in Iran. We Found It's Signilicauce In This Industry. This research is based on the. research conducted by Robin Cooper and Reign Slagmulder in 1998 about Japanese companies under title "Factors influencing the Target costing process".

Designing and establishing credit risk predicted models in Iranian banking system has a profound impact on asset allocations productivity. This paper tries to give an analysis of efficiency in related models such as linear probability model, logit regression and artificial neural networks. Predicted variables are financial ratios of borrowers that via statistical models confirmed significant interrelation between credit. risk and those ratios. Using financial and credit information, credit risk models were designed and tested for 316 legal entities as main bank customers. Results showed that interrelation between variables was not linear; exponential and sigmoid are best functions for credit risk predictions. Artificial neural networks and logit models have the most efficiency for risk forecasting.

This research investigates the relationship between the fundamental accounting information and stock returns for 51 Tehran Stock Exchange firms over the past 5 years (60 months). We construct a combination of financial & non-financial variables designed to capture short-term changes in the firm's financial position, profitability and audit report. We use nine fundamental signals to measure the firm's strength. Each firm's signal realization is classified as either "good" or ''bad'' and accordingly scored one or zero. The aggregate signal is designed to measure the overall strength of the firm position, called F-Score. The results of the research have shown that changes in profitability, total assets and audit reports are significantly related to the Abnormal Rate of Return (ARR), and the three variables can explain %48 of changes in ARR. To improve the model, we examine the effect of inflation. The results indicated that in the periods with high inflation, the Adjusted;-R2 (AR2) will improve from %48 to %58, but in the periods with low inflation changes in AR2 are not significant.

The main goal of this article is to use Data Envelopment Analysis (DEA) technique for determining optimum portfolio of the most efficient companies accepted at Tehran Stock Exchange. A number of models have been presented to determine portfolios. The major problems of the models presented so far are lack of taking attributes and multiple aspects (dimensions) into account for final evaluation of the stock portfolios. Another shortcoming of these models is lack of identifying the reasons for accepting or rejecting a company in an efficient portfolio. In order to solve these problems, a technique called "DEA", which is one of the multi-criteria decision-making techniques, is used. By using this technique, it is possible to determine efficient and inefficient companies, rank inefficient companies and determine a reference from among efficient companies in order to reach efficiency frontier and company's efficiency. In this research, CCR model with input nature and an envelopment form is used.

This research is about the application of analytical procedures in auditing. In this regard, this study examines the application of analytical procedures at three levels: planning, substantive test and final review of financial statements by IACPA. The results of this research show that all members in IACPA except CPA engaged in auditing individual proprietorships apply the analytical procedures at planning, substantive test and final review of financial statements. The study also shows that the CPAS engaged in auditing individual proprietorships apply analytical procedures at final review of the financial statements.

Value relevance studies routinely, employ regressions of contemporaneous stock prices or returns on accounting variables to evaluate how accounting information maps into these measures. Most studies of this nature, are silent on market efficiency and appear to make inferences based on this assumption. We examine the impact of market inefficiency on the estimation of coefficients in value relevance regressions and derive a procedure that corrects potential biases caused by such inefficiencies. Then, this procedure-is applied to two types of studies, that have attracted much attention in the accounting literature: 1) The value relevance of earnings and book values and 2) The value relevance of accruals and cash flows. Ninety one firms were selected between 1377-1382. Then the method of panel data was used to analysis. The results indicate that there is no significant increase in relationship between earnings, book values and adjusted stock return. There are also similar results between cash flows and adjusted stock return. Therefore, the new model does not have a significant effect on the regression coefficients between accounting-based and market-based, variables in Tehran Stock Exchange.

The main purpose of this paper is to study the importance and the effectiveness of the accounting standards. Therefore, accounting literature was surveyed to extract the features of accounting information. The resulted factors were employed to provide the questionnaire.The necessary information was collected by means of a written questionnaire. The statistical population included the certified public accountants. The hypothesizes of this study are as follows: 1) The accounting standards are important, 2) The accounting standards are applied effectively, 3) No significant difference exists among the perceptions of the respondents. A binomial statistical analysis and T-Test were used for testing the first and second hypothesizes. Chi-square statistical analysis was used for testing the third hypothesis. The results showed that the development of accounting standards is very important and accounting standards are carried out effectively. Also no significant difference was observed among the perceptions of the respondents.

In this study six hypotheses have been tackled to examine the quality of auditors' opinion by means of questionnaires -each of which included 6-7 items to deal with one of hypotheses and completed by the managers of Audit Organization.The results showed that the accounting standards, established by Audit Organization and made indispensable by the Ministry of Finance and Economic Affairs, have boosted the quality of auditors' opinion. In other words, the effects of 5 hypotheses on the quality of auditors' opinion have been more than the mean of population and only the effect of one of the six hypotheses has been less than the mean. So the accounting standards should be highlighted and properly supported.

This article is dev0ted to investigate important applications of the agency theory in management accounting. First, the mechanism of the agency theory is discussed. Then, four significant contributions of the theory are explained: 1) theoretical aspects, 2) practical aspects, 3) empirical evidence, and 4) cultural role. It is concluded that the agency theory has had a significant development in theoretical areas and determination of the optimal-incentive contracts. In addition, it has provided a scientific approach in employment of such managerial techniques as performance evaluation, incentives, budgeting and risk sharing. The empirical evidence of the agency theory has provided a strong evidence in different managerial accounting areas. The role of culture is also significant, and it has caused some basic assumptions of the agency theory to be viewed with serious doubt.

This study examines earning management of companies in Tehran Stock Exchange. It is hypothesized that earning manipulation occurs in Tehran Stock Exchange. This paper attempts to contribute to the earning management literature by using recent theories to identify whether earning management exists in Iran. This research is the first in Iran that investigates earning management.

The purpose of this study is to concentrate on the investigation of day-of-the-week effect on Tehran Stock Exchange and its comparison with other emerging markets. Using Classical Linear Regression (CLR) as well as Autoregressive Conditional Heteroscedasticity (ARCH) models, it is indicated that there is significantly positive total return on Saturdays and significantly negative total return on Sundays. There is no significant return on the other days of the week. So, one may suggest that it would be reasonable to sell on Saturday and buy it on Sunday. Comparing this result with that of other emerging stock markets, it can be concluded that the day-of-the-week effect on returns of Tehran stock Exchange is different from other emerging markets.