Financial Accounting Research
Year:2015 | Volume:7 | Issue:2 (24)|Papers Count:8

This research investigates the effect of calendar anomaly of religious time on using private information in stock trading from 2008 to the end of 2013 in 112 firms listed in Tehran Stock Exchange. To this end, using market microstructure models, the probability of stock trading based on firm’s private information is calculated in monthly way; and using panel data regression analysis, the results of Muharram and Ramadan are compared with other months of year. The results show that the probability of stock trading based on firm’s private information during Muharram is significantly lower than that of other months but, the probability of stock trading based on firm’s private information during Ramadan is not significantly different from other months. This subject confirmed the effect of calendar anomaly of religious time on using private information in stock trading.

As soon as a firm owner appoints a manager to act on his behalf and delegates decisions making authority to him, an agency relationship results in. In an agency relation, either side is after maximizing their interests. There are different approaches in terms of how conflicts of interests should be treated and dealt with. However, one of the means to resolve this problem is to make the bonuses of the executives based on their performances. The present study tries to find evidence for the effect of ownership concentration on the relationship between the board of directors’ compensation and the company’s performance on different types of ownerships in Tehran stock exchange. In this study 53 companies for period of 6 years from 2007 to 2012 are selected. This is a descriptive study and statistical procedures such as panel data multivariate regression models are used for testing the research hypotheses. Results indicate that, the concentration of ownership has a negative significant effect on the relationship between the board of directors’ compensation and the company’s performance. However in corporate type of ownership, the concentration of ownership has a positive significant effect on the relationship between the board of directors’ compensation and the annual stock returns. Where as, for management ownership no such relation is observed.

Since the accruals quality is changeable influenced by the choice of procedures and company policies, thus it increase possibility of using it to managing benefits and can increase the Non-systematic risk of Company. This study investigates the relationship between accruals quality and Non-systematic risk. In this study, data from 91 companies listed in Tehran Stock Exchange during the years of 2007 to 2012 - has been collected and hypotheses are investigated using analysis of the regression coefficients. Three criteriaare used to measure the accruals quality, ability of accruals; the information content of accruals and the amount of discretionary accruals. Then impact of accruals quality on the Non-systematic risk according to Fama and French model and CAPM model has been measuredand examined. The results show that discretionary accruals, ability of accruals and the information content of accruals are significantly correlated with the Non-systematic risk.

Theoretical framework, has an important role in leading the accountant system and financial reporting, because it include fundamental concepts and the objectives of financial reporting. Prerequisite of implementing an effective financial reporting is development of theoretical framework, accounting principal and a financial reporting based on environmental features and informational needs of users. The Iranian public sector institutes such as government agencies, municipality and institutions of Islamic revolution are influenced under environmental features and specific provisions that must be considered in development of theoretical financial reporting framework for public sector. The aim of this research is to evaluate the consistent theoretical framework, accounting principles and financial reporting of municipality with environmental features of municipality activities, from the financial experts point of views. In this study, financial experts opinion from 11 municipalities are collected by questionnaire. For analyzing the questionnaire data, the ANOVA method is used. The participants include financial managers, chief accountants, manager and assistants of internal auditing units in municipalities. The results of predication and comparative studies show that, the developed theoretical framework has an acceptable quality level. The financial experts evaluate theoretical framework, accounting principles and municipality financial reporting adaptable with environmental features of municipality activities.

According to the conflicts of interest between managers, stockholders and creditors, optimal decision making using free cash flows (FCF) in productive investment opportunities is one of the important firm financial decision. Increasing free cash flows in the company, leads to opportunistic behavior from managers especially in the light of conflict of interests. However, dividend and debt policy decision making can mitigate their effect. The aim of this paper is to investigate simultaneous relationship between free cash flow, dividend policy and leverage of 120 listed companies in Tehran stock exchange during 2007-2011. Three Stage Least Square Simultaneous Model (3SLS) is incorporated to test the research hypotheses. Our findings show that firms with high leverage have lower FCF, thus there is negative relationship between FCF and debt policy. Also, dividends have negative relationship with debt.

The main purpose of this study is to investigate the past firm growth on profitability and to examine management performance in managing the firm growth considering life cycle. For this purpose, among the listed companies in Tehran Stock Exchange, 85 companies from 2008 to 2012 are selected as the research sample. After collecting and classifying the data, multivariate regression model using panel data are incorporated to test the research hypotheses. The results show that past firm growth has a negative impact on firm profitability. The impact of past firm growth on profitability with changing time intervals is different. On the other hand, the life cycle has a significant impact on the relationship of firm growth and profitability, that the R-Squared in declined group is highest and in maturity group is the lowest. Due to the negative relationship between growth rate and profitability, companies that are sorted within declining group, due to aging, their growth rate reduces profitability.