Financial Accounting Research
Year:2010 | Volume:2 | Issue:2 (4)|Papers Count:17

In this research we study the influencing factors that have direct effects on successful AIS implementation. According to other researches, we specified some factors that are most effective, and categorized them through three main hypotheses of human recourses, technical characteristics of AIS and management strategies. To study various dimensions of these groups we determined some other factors as subsidiary hypotheses. Results of this study show that all of the main and subsidiary hypotheses have direct effect on successful implementation of AIS and among the main hypotheses human recourses is placed as the most influencing factor.

Corporate Governance is a set of policies, methods and processes that are carried out for supplying the interests of the firm's stakeholders. The aim of Corporate Governance is increasing the certainty coefficient of the firm's activities and management policies in connection to shareholders and all of the stakeholders’ interest. Therefore, it can be expected that there might be a relationship between Corporate Governance and financial performance. This research is also seeking for an answer to this question that "Is there a relationship between the corporate governance with different indexes of financial performance in Iran? In this research 80 sample companies listed in Tehran Security Exchange is selected. In addition nineteen mechanisms of corporate governance which are classified into seven groups have been selected and analyzed using fourteen indexes of financial performance that are classified into six groups. The results indicate that from seven general groups of effective corporate governance mechanisms, five factors correlates with a number of financial performance indexes. Additionally based on our results, corporate governance system in Iran has more features with indigenous systems rather than endogenous systems.

There are different theories that challenged the relation between leverage and investment decision. Also a large empirical literature tests this position. We investigate the impact of financial leverage on the firm's investment decisions in Tehran Stock Exchange (TSE). Using alternative measures of leverage and alternative empirical models, this paper shows that leverage is negatively related to investment. Then, we test which empirical methodology used is most suitable. Furthermore, we show that negative effect of leverage in investment is significantly stronger for firms with low growth opportunities than those with high growth opportunities. As a further test of the robustness of the estimates, we control for industry effects: we use the industry median to adjust the variables in models. The results of industry-adjusted variable approach are similar to the previous ones.

Herd behavior by investors in capital markets is a behavioral bias that can cause undesirable effects on the performance and efficiency of markets. Many methods and models are provided by researchers and scholars to measure the herd behavior of investors in stock markets. Each of these models is appropriate for certain conditions. Beta Herding is the newest approach to measurement and evaluation of investors herd behavior in capital market. In this approach herd behavior of investors is measured through the cross - sectional dispersion of sensitivity factors (beta coefficients). In this article we will analyze the herding of investors toward market, value and size with beta herding approach and using state space model. Our study has conducted for the period of April 2001 to November 2008 (92 - months). We find evidence of herding toward market factor in Tehran stock exchange. We also didn’t find any evidence of herding toward other factors such size and value. thus we can say that simultaneous attention to shares of small or big companies or simultaneous attention to growth or value stock have not affect the equilibrium relations in Iran's capital market.

Investors rely on quality, quantity and timeliness of disclosed information for decision making. The way investors conduct with this information and their decision, would form the capacity of supply and demand or on the other hand market depth and offered prices of selling and buying. On the other hand, a well structured corporate governance system has a great role in directing investors and market players and realization of a liquid market. On the basis of this concept in this research, we study the relationship between corporate governance system and market liquidity. A minimum of 100 days trading is required for the sample companies. In this regard, data of 61listed companies in Tehran stock exchange collected for 1386. Then, bid - ask spread information's and supply and demand volume has been collected and their relation with corporate governance quality has been examined. Results of the research show that companies with more independent board and more efficient approach have more market liquidity in comparison with other companies. In fact, the companies which have better corporate governance quality grades, have less bid-ask spreads and less differential share demand and supply.

In this paper, we review the relationship between concentrated ownership and conservatism. On the base of the literature, there are different competing hypotheses about the relation between these two variables and the sign of such relationship. Private interest hypothesis suggest that owners with high ownership percentage use their voting power to manage the firm in the way that they want. On the other hand, active monitoring hypothesis argue that concentrated owners use their power to monitor the manager and decision - making on firm performance. For the review, we use regression model and financial information of listed companies in Tehran exchange securities for 1381-85 period (285 firm - year). We conclude that with consideration of some control variables such as size, growth, and etc, there is a negative relation between concentrated ownership and conservatism. The result is consistent with private benefit hypothesis and inconsistent with active monitoring hypothesis.

In this study we review the  relationship between ownership concentration (OC) and earnings quality (EQ) by testing the data collected from 148 listed companies in the Tehran’s Stocks Exchange during a 5 year period from 1381-85. Researchers have found mixed results about the relationship between these two subject matters. We argue that one of the main reasons of such countervailing evidences is that those authors have used inappropriate OC measures disregarding the mutual relationships among blockholders. In order to avoid the possibility of such happening, using an innovative measure of OC, we are convinced that the usage of group measures of OC is justifiable with respect to the review of outside blockholders’ impact on EQ in Tehran’s Stock Exchange. Considering the multidimensionality nature of EQ concept, we have applied in our models, a measure of EQ using the qualitative characteristics of financial information of the conceptual framework of Iran’s Accepted Accounting Standards (Relevancy & Reliability). The results indicate that outside blockholders significantly improve EQ, while we found no evidence of such impact by Insiders.

An essential process in institutionalizing democracy is accountability. It seems one of the main ingredients of economical accountability is auditing. Auditing stands in monitoring aspect of every organization and it has extended application from top to bottom of governing level in each country. For every system to be active and going on, feedback and monitoring is required. But in spite of audit’s development – because of its necessity – we can’t logically say how audit fees are determined and reasonably we can’t claim, according to firm’s characteristic and with what cost, the work would be done. In this regard, we have tested factors influencing financial audit fees. For this purpose, required data have been collected from listed firms’ financial statements and interviews with financial managers for a five years (2004-2008) periods. After sorting the collected data, their relation with audit fees tested. Statistical method used in this study is correlation analysis through panel data and the hypothesis tested using Eviews software. Research findings showed variables such as firm’s size, complexity of firm’s operation, kind of audit firm and inflation statistically have significance relation with audit fees but variables like audit risk, education and experience of client’s financial manager don’t have significance relation with the dependent variable (audit fees).