Financial Accounting Research
Year:2010 | Volume:2 | Issue:4 (6)|Papers Count:19

This is an empirical investigation on the relation between investment efficiency and financial reporting quality, which is based on Verdi (2006) model. Investment efficiency in a conceptual framework means the acceptance of the investment projects with positive NPV, and investment inefficiency means rejecting these investments opportunities (underinvestment) or investing in projects with negative NPV (overinvestment). In this paper, expected investment is a function of growth opportunities. Overinvestment and underinvestment is a sign of investment inefficiency. For evaluating the financial reporting quality, we used the accruals quality model. This paper investigates the subject matter in 152 companies at TSE (Tehran Stock Exchange) in 1379 to 1387 time period. The evidences suggest no association between those variables.

Human resource accounting is in fact the application of the concept of management accounting information system in human resource management area. This accounting is the measure of costing human resource as the main resource in every organization. Hence, the main purpose of this research is to examine the effect of Human Resource Accounting Information (HRAI) on construct of the balanced scorecard system of listed companies in the Tehran Stock Exchange (TSE) market. The data sample is confined to 96 companies on the TSE during 1383 to 1387. The results of hypotheses testing, by employing the"Partial Regression" technique, indicate that there is a significant positive relationship between HRAI and the constructs of the balanced scorecard system with regards to the type, and size of the company, education and experience of human resource managers both at the level of all companies and at the level of the designated measures. Furthermore, research results at the measures level also illustrate that there is a positive effect concerning the type and size of companies on the relationship of HRAI and measures of the financial constructs, (net profit, the management of expenses and net earning), costumer construct, (sales returns and guarantee), and internal process construct (bad debts and maintenance expense). Moreover, the type and size of the company, along with the education and experience of human resource managers can positively influence the relationship between HRAI and growth and learning construct (Job quality, enabling and job satisfaction and training improvement).

The main purpose of the present article is to investigate the information content of interim income statements according to Accounting Standard No.22. For this purpose the interim financial statements of 318 corporations that are listed in Tehran Stock Exchange were studied. The statements are for 3, 6, and 9 month periods between the years 1381 to 1387.In order to discuss the information in the statements we studied the power of interim income statements in prediction of stock return, profitability, generate cash flow, financial position and liquidation. The results show that the three types of interim income statements have enough information and investors can use their data to obtain predictor models. The results indicate that the power of the information content of interim income statements for predicting generating cash flow are maximum, but for stock return are minimum. At last, the research concludes that a great deal of numbers in interim income statements have incremental information's content, because every of them can increase statistical reliability of predication models. In addition numbers in interim income statement with 9 months period have the highest information content.

This study tries to answer whether the market risk is more associated with the systematic risk of value stocks than growth stocks, and also investigates the prediction power of the systematic risk of value and growth stock in the forecasting of market risk. The investigation is performed using both cross-sectional and pooling methods for a sample consisting of 274 Iranian firms listed in the Tehran Stock Exchange during the period 2000-2008. In this study, to examine the relationship between market risk and the systematic risk of value and growth stocks, the time period is divided into four categories, including recession, trough, expansion and peck. Moreover, conditional capital assets pricing model (CCAPM) is used to investigate the prediction power of the systematic risk of value and growth stocks in the market risk’s forecasting. This study does not provide conclusive evidence. In the other words, the results indicate that, for firms listed in the recession group, market risk is more correlated with the risk of growth stocks than value stocks while, for the firms listed in the trough and expansion groups, market risk is highly associated with value stocks’ risk. Moreover, there is no significant relationship between these measure and market risk for the firms which listed in the peck group. Furthermore, the results reveal that value stocks are not superior to growth stocks in the forecasting of the market risk.

Current article explore for factors that associated with speed of financial reporting for 276 of listed companies in Tehran Stock Exchange during the period of 1378 to 1387. In this study we used date different between ends of fiscal year and issued date of annual financial reporting as index for speed in financial reporting. In addition financial ratio, firm's size and ratio of reinvestment current net income used as factors that effect on speed of financial reporting. For purpose of this article, Kruskal-Wallis test, Median test and test of Multi-Regression Analysis used for testing hypotheses.Our results show that any of variables don' t have normal distribution, so using non-parametrical statistic tests preferred. In addition corporations with different speed of financial reporting have different financial and non-financial ratios and corporations that work in different industry have different speed in financial reporting. Speed of financial reporting has become faster during the period of study. Majority of financial and non-financial variables have significant relations with speed of financial reporting. The result indicates that financial and non-financial ratios can make predictive models for speed of financial reporting.

The aim of this Paper is to compare Capital Assets Pricing Model (CAPM) and Capital Assets Pricing Model under Inflation (CAPMUI) in respect to compute the stock returns. So, three hypotheses have been formed. To test the hypotheses, monthly data of 72 listed companies in Tehran Stock Exchange (TSE) during 1382-1386 were collected. The results indicated that regarding to computing the asset returns, CAPMUI model has a deviation coefficient smaller to CAPM and the existence of inflation factor in this model increases the precision of the model comparing to the first model. In other words, inflation factor has an important effect on computing the assets returns.In inflation conditions, if there is a positive correlation between the portfolio return and the inflation rate, market price of risk is understated by CAPM.

Corporate governance tools are effective factors in determining the level of cash holdings. Some researches indicate that increasing in corporate governance quality leads to decrease cash holdings. No many researches have done about the relationship between corporate governance and cash holdings in Iran. Therefore the main goal of this paper is to review the relationship between percentage of institutional ownership and percentage of outside directors as independent variables and cash holdings as dependent variable in Tehran Stock Exchange. Therefore 129 firms that their required data for a ten year period was available were studied. The multivariate pooled regression model is used to examine the hypotheses. The conclusions indicate that there is no significant relationship between percentage of institutional ownership and cash holdings. There is a negative and significant relationship between percentage of outside directors and cash holdings in Tehran Stock Exchange.

Earnings quarterly announcements in Tehran Stock Exchange has increased during the past years. We examine the relation between quarterly earnings surprises and stock liquidity. We used effective relative bid ask spread as a proxy for stock liquidity. Based on the market model, this study compared abnormal effective relative bid ask spread and average abnormal effective relative bid ask spread in the period of 20 and 10 days before and after announcement. For a sample of 555 earnings quarterly announcement during 1384-1387 years, we show that stock liquidity has not increased around the earnings quarterly announcements.

Stock Return Volatility and the factors that effect on it are the controversial subjects in financial research. Institutional Investors as a group of investors, who access to huge financial resources, have an important role in economic and capital market development. On this basis, study about institutional investor's role in stock returns volatility is necessary. This paper is tended to find evidence in support of relationship between institutional investors and stock return volatility. This relationship is examined based on two theories in Tehran Stock Exchange: Efficient monitoring and convergence of interests. This study is descriptive-correlation based on cross sectional data. The final sample includes 121 of listed companies in Tehran Stock Exchange in 2008. To examine this relationship, multivariable linear regression model was applied. The findings show that the presence of institutional investors in firm increases the monitoring on managers' performance and decreases the information asymmetry problems. These findings are useful for capital market policy makers to approve rules to support institutional investors’s role in corporate governance. It might be useful for investors to have a new criterion to decrease the risk of volatility of return on investments.

During the last decades long-memory processes have evolved as an important part of time series analysis and long memory parameter in asset returns has important evidences for many paradigms in modern finance theory. If asset returns display long memory, the series realizations are not independent over time, realizations from the remote past can help forecast future returns. Therefore the presence of long memory in asset returns contradicts the weak form of the market efficiency hypothesis. Also this characteristic has fundamental effect on time series prediction methods. This research examines the presence of long memory in series of return and volatility of Tehran Stock Exchange. Significance evidence of long memory is found in first and second moments of Tehran Stock Exchange return series. Also predictive accuracy of AMRA, GARCH, ARFIMA and FIGARCH models compared in variety of forecast horizons with recursive and rolling estimation schemes. The results of this research show that ARMA model perform better in 1-step ahead forecast, while for greater forecast horizons, including weekly, monthly, seasonal and yearly predictions, FIGARCH model outperform other alternatives.