JOURNAL OF ACCOUNTING AND AUDITING RESEARCHES (ACCOUNTING RESEARCH)
Year:2009 | Volume:1 | Issue:3|Papers Count:13

This research is based on study conducted by Shyam-Sunder and Myers. Major capital structure theories are investigated during study and two recent and major theories mean static tradeoff and pecking order are selected to explain capital structure pattern in Iranian companies. The study is conducted using historical data of 279 registered companies in Tehran Stock Exchange. Paneling criterion is industry and the companies are paneled in 21 industries during 5 years. In order to test given theories, regression equations are developed according to the literature and then equations ability in explaining capital structure patterns are evaluated.

Under the history of research there is a direct relationship between the audit quality and financial reporting reliability. We investigate whether audit quality is associated with the earninig forecast.The statistical population is the listed companies in Tehran Stock Exchange during 1381 to 1385. The evidence shows that earning forecast accuracy is higher and the forecast dispersion is smaller for firms audited by industry specialist auditors. In addition, there is an indirect relationship between auditor size and earning forecast dispersion.Our results suggest that high quality audit provided by the only big) i.e. Audit Organization (and industry specialist auditors is associated with more accurate earning forecast.

This research studies the effects of examination of prospective financial information on quality of management earnings forecasts, regarding the importance of management earnings forecasts in the capital market, and also the necessity of recognizing the value added of section 340 of ASs. In this case, the effect of this section of ASs on the earnings forecasts error, numbers of revision and stock price is tested. The test was conducted for examining the effects of enforcement of the section 340 of ASs on reducing earnings forecasts error and number of revisions for 86 listed companies during 1382-1386, which includes paired t-test. Furthermore, the tests include paired t-test and repeated measure design for examining the effects of enforcement of the section 340 for changing the stock's price for 25 listed companies during 1385-1386.Finally, the results show that enforcement of section 340 of ASs reduces the earnings forecasts error and do not lead to change the stock's price, but it reduces number of revisions.

This paper surveys some aspects of overinvestment and underinvestment hypothesis. On the base of this hypothesis, Free Cash Flows (FCF) at the result of information asymmetry between managers and shareholders, lead to overinvestment. Also, Financial Constraint (FC) cause to underinvestment. This paper investigates relation between FCF and overinvestment & relation between FC and underinvestment in Tehran Stock Exchange (TSE), s corporations. Results suggest that, there is a positive and significant relation between FCF and overinvestment. Nevertheless, this paper shows, the relation between FC and underinvestment, statistically is not significant.

This study examines earning management behavior and its relation with monitoring device of corporate governance. We are exploring to identify whether outside directors and institutional investors can restrict opportunistic earning management behavior? Earning management behavior is described by threshold model and Denotes bring up reported earning to target earnings levels. It consists income-increasing earning management and income-decreasing earning management. the proxy of earning management is abnormal working capital accruals.Our empirical tests are conducted by regression analysis using data 185 listed firms with fiscal years 1382-1385, and pooling time series and cross-section data.Result of signalling rationale that is tested using a logistic regression indicates that abnormal accruals cannot explains future earning changes, And be as signal for future earnings.Moreover, examining the link between monitoring device of corporate governance and earning management that is tested with pooled OLS regression shows, when managers will seek to manipulate earnings (upwards or downward). There is little evidence that outside directors and institutional investors Influence abnormal accruals. At last, we find no evidence that monitoring device can restrict aggressive earning management behavior. only when pre-managed earning are below last period's reported earning, outside directors influence little the likelihood that reported earnings exceed the thresholds.

Conservatism is interpreted as asymmetric verification in recognizing good news versus bad news in financial statements. Under this interpretation of conservatism, earnings reflect bad news more quickly than good news. By using firms' stock returns to measure news, the asymmetric timeliness of recognizing good news and bad news can be examined as a measure of conservative behavior as main question of this research in Iranian capital market. In addition, accrual accounting gives managers a lot of choices for determining earning in different periods. And managers have various choices in time of recognizing gains and losses in accrual accounting system; therefore, it is expected as second question of research that bigger part of the asymmetric timeliness is effected by accruals (compared with CFO's). To find answers of the research questions, data of 106 firms in Tehran Stock Exchange during 1997-2006are analyzed by using pooling regression analyze. The results show that earnings are 3.66 times more sensitive to negative than positive stock returns. And about 78 percents of asymmetric timeliness in earnings are explained by accruals.

The purpose of this paper is to investigate the experiences of auditors about complex and unstructured of auditing dilemmas, such as Judgment about going-concern and auditior's options. The results show that experience of auditors significantly affects on the Judgment of auditors in complex tasks. Observations are divided into experienced auditors and inexperienced auditors and separate research have done in 46 partners and auditing managers to determine the complex of subject, unstructured tasks and level of experience needed for judgment about this tasks.Finally, results show that exist a significant difference between level judgments of experienced auditors and uncaptioned auditors about unstructured tasks and experience have important effect on precision of auditing options.

This paper investigated earnings management through the sale of firm assets. The earnings management incentive examined in the paper is reducing forecast error of current year and future earnings. If management forecast for earnings is not realized, managers use instruments such as timing of asset sales to manage earnings. Regarding research hypotheses, firms with negative) positive (current performance and positive) negative (expected future performance manage earnings using positive) negative (values of income from assets sales. Hypotheses are tested through multiple regression and statistic tests for firms listed on Tehran Stock Exchange) TSE (for the period of 1380 to 1385. The results supported Research Hypotheses. It is meaning that firms managed earnings through asset sales.

This Paper investigates the relationship between capital structure and stock rate of return and EPS. The capital structure including debt, because of tax advantage causes earnings and EPS to increase. At the other hand, because of interest expense and fail for repayment the debt, the financial risk increases and as a result stock market price and stock rate of return decrease.We consider debt to assets and debt to equity ratios as independent variables and stock rate of return and EPS as dependent variables. We study a sample of 51 Companies Listed in TSE for the years 1999 to 2005. For hypothesis testing, we use pooled data regression models.The results show that there is a positive and significant relationship between debt to equity ratio and stock rate of return and EPS. Also, the results show a significant relationship between debt to assets ratio and EPS.

The purpose of this research is to examine the difference between the perception of internal and external auditors, in relation to the efficiency of 36 red flag of SAS No.99, in order to detect the fraudulent financial reporting. The SAS No.99 commit the auditors to use the red flags to audit the financial statements toward detection of fraudulent financial reporting.The results of this study revealed that there is no specific difference between the perception of internal and external auditors, and from their point of view the most effective red flag is "Inadequate monitoring of significant internal control". Both groups of auditors categorize that red flags coming from "Opportunity" is more effective than red flags coming from "Attitude and Incentive" in detection of fraudulent financial reporting.Also it became clear that the amount of experience and position of job is effective in perception of internal auditors with regard to efficiency of red flags, however, these two variable are not effective for external auditors.

The purpose of this Study is to testing the Initial Public Offer (IPO) underpricing, to investigating the factors affects on IPO underpricing and its long-run return performance. This research has investigated 78 IPOs offered in Tehran stock exchange during the years of 1999-2003. Results of testing the short-run return adjusted with market index using one-sample T test, demonstrate that IPO underpricing Phenomenon exist in Tehran stock exchange and IPO long-run return is higher than the total market index. Findings demonstrate that standard deviation of weakly return during 2 months after IPO, number of the IPO offered before any new offer and total market index return rate in the short-run period before IPO have significance influence on the IPO underpricing. But offered stock volume had not significance in fluence on the IPO underpricing.