Financial Accounting Research
Year:2016 | Volume:8 | Issue:4 (30) |Papers Count:7

This study investigates the relationship between working capital and corporate performance and considering that financial situations may have an important role in this relationship, the quality of relationship between the optimal level of working capital and financial constraints was examined. The target sample consists of 82 of the listed companies in Tehran Stock Exchange from 1388 to 1392. Tobin’s Q is used as a proxy for corporate performance, while net trade cycle (NTC) is used as proxy for working capital and dividend (DIV), Interest coverage (IC), ww index (WW), kz index (KZ), cash flow (CF) used as a proxy for financial constraints. In this research panel data method (with fixes effects) is used to test the hypotheses. The results show that there is an inverse u-shaped relationship between the working capital and corporate performance. The results also show that the optimal level of working capital for companies that have greater financial constraints (except Interest coverage) is lower.

This study investigates the effect of internal information environment on tax avoidance in the listed companies in Tehran Stock Exchange. Book effective tax rate, cash effective tax rate and long-run cash effective tax rate are used as proxies for tax avoidance. Target sample consists of 122 of the listed companies in Tehran Stock Exchange during 1387 to 1393. The results show that there is no significant relationship between earnings announcement speed and tax avoidance. On the other hand, the relationship between management forecast accuracy and tax avoidance was positive. This positive relationship means that the low managers' earnings forecast accuracy reduces tax avoidance activities and managers can invest in companies' information systems to improve the quality of companies' internal information, because internal information with high quality enables companies to find more long-term tax avoidance opportunities with recurring and sustained benefits rather than pursuing risky one-time opportunities.

Auditing profession faced many lawsuits and also the extent damage of these lawsuits during the last two decades. Adverse consequences of these lawsuits are very severe for audit society and in this position the foundation of it become weaken. Therefore this paper studies the lawsuits against Iranian auditors and it's relationship with the audit fee. Thus, in this paper by studying literature of auditing, first we identified 11 effective factors on litigation risk of auditors and then according to the data of 100 firms listed in Teheran Stock Exchange, we studied their effects on audit fees for the time period 2009 to 2014. The results indicate that in Tehran Stock Exchange, among 11 factors, only three of them which are effectiveness of the client's internal control system, the auditor's independence and ownership concentration have significant effect on the audit fees. These results suggest that the independent auditors don’t pay much attention to the litigation risk and the audit fee is usually based on volume of audit effort and it is not be affected by the litigation risk premium.

This study investigates the effects of linguistic factors on willingness to invest. One of the most important linguistic factors is the financial reports language structure, dividing into two groups: concrete language and abstract language. Since the influence of the financial reports language structure on willingness to invest is almost affected by psychological factors (especially psychological distance), this study deals with the effect of the language structure and psychological distance on willingness to invest. For this test, the research framework of Elliott et.al (2015) is developed and an experiment with a 2×4 between subject design (including four scenarios that provide information from fully abstract to fully concrete and two scenarios with short and long psychological distance) is utilized. According to results, generally the language structure does not merely effect on willingness to invest. Also, increasing the psychological distance does not change the effect of language structure on willingness to invest. The analysis of the findings shows that language structure influence on willingness to invest, when the concreteness of information augment through methods of content (presenting more information) more than methods of form (flowing text).

In order to obtain ideal social and organizational positions, after graduation, many women tend to work in a professional job related to their knowledge and skills. However, under the influence of both internal (in profession) and external (in family) adverse conditions, the application of their knowledge, skills and potential talent would be failed and they cannot achieve an appropriate balance between their life and work. This study aims to investigate the main reasons for which female accountants change their job and sometimes leave the accounting profession. This research evaluates women’s’ professional presence through data collected during the spring 2015 (1395) via deep interviews. Research society includes all female accountants who tend or apply to change their accounting job in Zahedan (Southern east of Iran). The number of such a group of women in public and private sectors could not be determined. Target sample consists of 30 available interviewees who participated in the research. The results show that the main reasons for female accountants to change their jobs are to achieve a) better working environment, b) reach peace, and c) more flexibility in work. Salary and earnings are the least important to them; mostly prefer to work in educational environments; and generally have almost no desire to work in tax and managerial accounting.

Earnings Response Coefficient explains and identifies the different reasons of the market reaction to accounting information. A piece of useful information that investors and creditors need to ensure is awareness about the risk of default risk and bankruptcy probability of the entity. The aim of the study is to investigate the relationship between the default risk and ERC with an emphasis on corporate governance characteristics (auditor type, ownership concentration, board independence and the institutional ownership) in Tehran Stock Exchange listed Companies. The sample of the research consists of 93 listed firms in Tehran Stock Exchange from 2008 to 2013, so totally 465 firm-year observations has been studied. The Results indicate that the default risk has a significant negative impact on ERC. Evidence suggests that among the corporate governance characteristics (auditor type, ownership concentration, board independence and the institutional ownership), the auditor type and board independence don't have any impact on the relationship between the default risk and ERC; while the ownership concentration and institutional ownership have a significant positive impact on the relationship between default risk and ERC.