Financial Accounting Research
Year:2015 | Volume:7 | Issue:3 (25) |Papers Count:7

The aim of this research is to investigate the relationship between the corporate governance mechanisms and the debt absorption magnitude of listed companies in Tehran Stock Exchange. In this study, the corporate governance mechanisms include ownership centralization, institutional ownership, director board size, and director board independence. The liabilities to assets ratio is used to measure debt absorption magnitude, and also, company’s size, growth opportunity, profitability, liquidity, and tangible assets ratios as control variables. As the research sample, 120 companies are investigated during 2007-2012. The panel regression analysis (with fixed effect) is incorporated to test the hypotheses. The findings indicate that none of the corporate governance mechanisms have an impact on financial leverage. Also, the results show that the profitability, the liquidity and tangible assets ratio have a negative and significant impact on the debt absorption magnitude. However, the size of company and the growth opportunity have a direct impact factor on the debt absorption magnitude.

Due to the agency conflict in firms, shareholders demand to pay dividends and force management to distribute more dividends. Paying greater dividends jeopardizes the interests of creditors. Thus, it is attempted by using the conservatism in financial reporting, interests of shareholders and also interests of creditors in the distribution of dividends to be maintained. on the other hand, a number of factors including excess cash increase the agency conflicts in the company. Therefore, the purpose of this study is to investigate the effect of excess cash on conservative influence on the dividend payment. The sample is consisted of 88 Firms listed in Tehran Stock Exchange from 2008 to 2013. In order to test the research hypotheses, Tobit Regression Model and Panel data are utilized. The results show that conservatism has a negative significant impact on the payment of dividends in firms with excess cash in high-level. But in firms with excess cash in low-level, conservatism has an insignificant impact on the payment of dividends. Also, the excess cash in high-level has a significant effect on the amount of conservatism influence on the dividend payment.

While some of the modern performance measures used in accounting rely on cash flow, others try to take advantage of the information content of net income. However, whether the additional information content in the accrual components of earnings improves the internal performance measurement is an open empirical question. Conceptual framework of this paper based on agency costs and political costs. So that, firm size and information environment are tow important factors in value relevance of net income and operating cash flow. The main purpose of this study is to investigate interactive effect of firm size and information environment on value relevance of net income and operating cash flow. The sample of this study is selected from companies listed in Tehran Stock Exchange (TSE). The study period is between the years 2008 to 2013. The sample consists of 100 companies. To test the research hypotheses regression models using pooled data are incorporated. The results show that net income has more additional and incremental information content than operating cash flow to explain performance of stock market; but firm size and information environment have no effect on value relevance of net Income and operating cash flow. According to the results, we find that, there are not interactive effect of firm size and information environment on value relevance of net income and operating cash flow.

This study examines the impact of volatility of earnings and its internal components (working capital accruals’ volatility, cash flow from operation, depreciation and other working capital accruals) on the accuracy of earning forecast by mangers. The sample of this study consists of 72 companies listed in Tehran Stock Exchange for a period of 2008 -2013. To conduct the research; 1) simple model presented by Dichow and Tang (2009); and 2) earnings prediction model presented by Colin and Goli (2014) are used. To test the research hypotheses a cross sectional test of the model is conducted then, using two test range and studying the ratio between the two independent variable during the research period is conducted to measure the persistence of variables. Results indicate that earning on its own in yearly base, is persistence, while the other internal components of earnings in yearly and six monthly period, is not persistence and lead to volatility in earnings and reduce the accuracy of earnings forecasts.

The existing competition in modern markets nowadays has been extended, compared to the past. Most companies make effort to obtain competitive advantages by utilizing an appropriate competitive strategies. Hence, by improving the competitiveness of their products, the improvement of the company may occur. Improving value for customers in order to obtain competitive advantage closely related to the careful selection of the strategy by the company. In this research, the impact of competitive strategies on stability of financial performance and the risk of accepted companies in Tehran Stock Exchange are investigated. To test the proposed impact, the data of 424 year-company, includes 130 companies from 2007-2013 are selected. To evaluate the competitiveness strategies, exploratory factor analysis is utilized. To analyze the data and hypothesis test, the multivariate linear regression and Pearson correlation coefficient are employed. The results show that, although using the differentiation strategy leads to more stable financial performance, compared to cost leadership strategy, this strategy may be more risky.

Managers can use discretionary accruals to convey information to the capital market. The information signaling in market can lead to improve information environment and information disclosure about firm growth. Thus, information signaling can create the value for investors. The purpose of this paper is to investigate the role of information environment and firm growth on the pricing of discretionary accruals in the listed companies in Tehran Stock Exchange (TSE). For test of hypotheses, we use multiple regression models. The research period is from 2006 to 2013 and the sample of this study consists of 71 listed companies in TSE. The results show that the discretionary accruals have a positive effect on stock price. Also, the results reveal that in firms with strong environment information and high growth firms, the discretionary accruals are priced to a greater. Generally, these results prove the positive role of discretionary accruals in signaling.