Financial Accounting Research
Year:2015 | Volume:7 | Issue:1 (23) |Papers Count:7

In traditional approach of measuring accruals, items are scaled by average total assets. Scaling accruals by earnings created a new concept entitled percent (relative) accruals. When accruals component of earnings scaled by earnings, this new definition of accruals was produced more efficient data to classifying. In this study the ability of percent and traditional accruals to identify disvalued stocks was investigated. In order to, sophisticated and naïve forecasts models was used. The sample included of 158 firms (1160 firms- year) listed on the Tehran Stock Exchange between 1380 to 1389. The research find that, in contrast with expectation, percent accruals approach haven't more ability to identify undervalued stocks.

If the capital market is not so efficient as market hypothesis propose, then the process of reviewing and adjusting stock prices by investors as a result of reacting to new information, does not take place immediately and occur with delay, which is called "Stock Price Delay". This delay is consists of accounting and non-accounting parts. This study focuses on the accounting information quality as one of the main factors affecting the stock price delay and investigates whether stock price delay affects expected return? For this purpose, two measures of accruals quality and earnings surprise are used as accounting information quality for measuring the stock price delay. Then the stock price delay is decomposed in two parts including, accounting and non-accounting parts to investigate the effect of stock price delay on expected return. The sample of this study consists of 57 companies listed in Tehran Stock Exchange for the period from 2009 to 2012 (1387 to 1390 Iranian calendar). The results show that accruals quality has a significant and negative effect on stock price delay. Also the non accounting part of stock price delay has a significant and positive effect on expected return. But accounting part of stock price delay has no effect on expected return.

The main purpose of this article is to examine the effect of management ability on earnings quality. To coduct this study, financial reports of 92 companies during the financial periods of 2002 to 2010 are used. Management ability is measured by DEA method and eanings quality is measured by three criteria that are: eaning restatement, eaning stability and the quality of accruals items. The results of this research show that management ability generally has a positive and meaningful effect on eanings quality. The results also show that high ability of management causes more stability of earnings and a better quality for accrual items but a meaningful relationship between management ability and the criterion of eanings restatement was not found.

The main purpose of this paper is empirically investigating the impact of board characteristics on financial restatement of listed companies in Tehran stock exchange (TSE). Therefore, in this study a sample of 97 from the listed companies in TSE between 2004 to 2010, are selected. The magnitude of restatement is measured by amount of net income restatement; and board size, the percentage of independent directors and the chairman and CEO/chair duality are selected as board characteristics. In conducting this research, two main hypothesises are proposed.  For testing the hypotheses logistic and multiple linear regression analysis are conducted. Results show that there is no relationship between board characteristics and restatement event. Also, board size does not have significant relationships with magnitude of restatement; however, there is a significant negative relationship between the percentage of non-executive directors and separation of the chairman and managing director/chair duality with magnitude of restatement. In other words, the more the independent board, the lesser restatement magnitude.

In this research, we have studied the established relationship between some of corporate characteristics and information disclosure levels in 32 published papers which investigated in more than 20 countries. Some of these characteristics that are known to affect disclosure level in the literature are chosen and their impact on disclosure scores of listed companies in Tehran stock exchange was examined. The data for 510 company/years are selected from companies that are listed in Tehran stock exchange during 2008-2012. Panel data multiple regressions with is used to test relationship between company characteristics including company size, debt to equity ratio, profitability, company’s age and liquidity with disclosure scores. The results indicate that, inconsistent with literature, there is no significant relationship between size, age and debt ratio on one side and disclosure level on another side. However, the results show there is a significant positive relationship between profitability and liquidity with disclosure scores of the companies listed in Tehran Stock Exchange. These results indicate that favorable position in terms of liquidity and profitability encourages managers to increase disclosure and transparency level to inform investors and other external users about good condition of the company.

This study investigates the relationship of financial reporting quality and debt maturity with investment efficiency and their mutual effect on investment efficiency. The data of 94 companies listed in Tehran Stock Exchange over a period of 2009 to 2013 are used. The test of hypotheses is carried out using regression analysis based on pooled data. The results show that the companies with a higher financial reporting quality having higher investment efficiency as well. There is also a direct and significant relationship between investment efficiency and debt usage. The analysis of financial reporting quality and debt maturity mutual effect on investment efficiency demonstrates that the relationship between financial reporting quality and investment efficiency in the companies that have lower short-term debt is stronger.