Financial Accounting Research
Year:2016 | Volume:8 | Issue:2 (28) |Papers Count:7

The Purpose of this research is investigating the usefulness of random forest classifier and relief features selection in financial distress prediction of companies listed on Tehran Stock Exchange. In this regard, through reviewing literature, 69 predictive features (variables) were specified as the initial features based on the popularity in the literature and the availability of the necessary data. By using relief method, optimal variables were selected from initial variables. In overall, the experimental results of investigating 95 financially distressed and 95 non-financial distressed in 2002 to 2014, indicated that random forest outperforms the logistic regression. In other words, the application of this classifier, increases the mean of accuracy, and reduces the occurrence of type I and type II errors. Furthermore, the results confirmed the usefulness of relief method in predicting financial distress. In other words, using selected variables of this feature selection method (relative to using 69 initial variables) increases the mean of accuracy, and reduces the occurrence of type I and type II errors

The purpose of this paper is to examine the influence of various financial and non-financial variables on the level of voluntary disclosure in the annual reports of listed Iranian firms.  The research paper has been based on a sample of 203 firms listed in the Tehran Stock Exchange during the study period from 1391 to 1392. Also, the Ordinary Least Squares (OLS) method is used for testing hypotheses. The disclosure score used in this study is unweighted relative disclosure index consisting of 50 voluntary items based on accounting standards for measuring voluntary disclosure in annual reports. The empirical results indicate that only one of the corporate characterizes (Size) has a significant positive association with voluntary disclosure. This study does not find any significant relationship between Age, Leverage, Liquidity, Profitability, Audit firm size with the extent of voluntary disclosure

This research follows two main goals: first, ranking firms which are listed in Tehran Stock Exchange (TSE) based on the performance evaluation criteria and and second, Comparing performance criteria and identifying the best measures to assess performance. In complying with the first aim, traditional financial ratios, modern and economics measures were calculated for the period of 13 years (2000-2013) as performance evaluation criteria for the sample firms. Then, selected samples were ranked according of each index via the TOPSIS technique and Shannon’s entropy concept. Moreover, companies were ranked according of total performance indexes. The results showed that when the traditional ratios, modern or economic indexes are used individually, a firm belonging to the sugar industry, metallic mineral mining industry, vehicle and parts manufacturing industry is the first one respectively. However, when total indexes are used, a firm belonging to the vehicle and parts manufacturing industry posits the first rank. In attaining the second aim of the research, hypotheses regarding to the determination of the significance of the differences between relative proximity indexes of the firms in traditional, modern and economics criteria and also, determination of the existence and effect relationship between criteria and determination of the closest index to total indexes, were tested. Thus, Friedman test, Spearman test and regression were performed. Results showed that TOPSIS is an appropriate technique for ranking of the firm, and there is a significant differences between relative proximity indexes of the traditional, modern and economics criteria. Also, there is a significant relation between the modern and economic ratios, but these indexes do not exhibit a significant relation with the traditional performance criteria. Other results of this research relates to the existence of the relation between modern and economic indexes, compared with the traditional criteria, to total indexes.

This study examines of the disclosure behavior of listed companies in Tehran stock exchange and also the bilateral (two-sided) relationship between disclosure and operational performance / market valuation before and after important changes in economic and accounting regulation. Return on sale ratio and Tobin's Q are considered as operational performance and market valuation measures. an un-weighted disclosure index of 600 items has been used the level of disclosure in annual reports. In this regard، the goal of this research is to study the bilateral relationship between level of disclosure and operational performance and market valuation of 66 companies listed on Tehran Stock Exchange during 1998 until 2000 and 2008 until 2013. To analysis the collected data simultaneous equations system was estimated using two-step regression. Based on the results، there is bilateral relationship between the level of disclosure and operational performance and market valuation of the companies listed on the Tehran Stock Exchange before and after Important Changes in Economic and Accounting regulation. The results also show the level of disclosure and also the relationship between the level of disclosure and operational performance and market valuation have been increased after Important Changes in economic and accounting regulation.

Separation of ownership from management caused to form an agency relationship and there is a possibility that information asymmetry Take shape between managers and owners and consequently, owners canʼt view managerial activities. As a result, managers may be make decisions that are in line with personal interests and stock prices divert its inherent price. The aim of this study is to evaluate the effect of agency cost of free cash flow on stock mispricing. Market to Book ratio decomposition is used to calculation of stock mispricing. In order to do research 170 firm that listed in Tehran Stock Exchange in the period 1385-1393 have been selected. Multiple Regression with the Generalized Least Squares (GLS) estimation method and Panel Data used to test the models. The results show that there is positive and significant relationship between agency costs of free cash flow and stock mispricing; In other words according to our expectation, an increase in agency costs of free cash flow cause to an increase in stock mispricing.

The main purpose of this article is to examine the effect of corporate governance in reducing agency costs by using structural equation modeling approach. The data used, has been extracted from financial reports of the 68 firms listed in the Tehran Stock Exchange in the period of 2006-2012 (1385 to 1391 Iranian calendar). Agency costs as dependent variable (latent variable) are measured by observed variables those are: Tobin's q, asset-utility, discretionary expenses, free cash flows and leverage ratio. Corporate governance as independent variable (latent variable) are measured by observed variables those are: percentage of institutional investors, board of director’s size, percentage of non-executive board members, auditor type and internal audit unit. In addition, firm size and growth opportunities are entered to the model as control variables. The results show that corporate governance has a significant and negative effect on agency costs. Thus, corporate governance can be helpful in reducing conflict between management group, shareholders and other beneficiaries.