Journal of Accounting Advances
Year:2011 | Volume:2 | Issue:2 (59/3)|Papers Count:7

Information is the basis of decision-making of securities market participants that is published by the stock exchange, securities publishers and financial intermediaries of these markets. Use of information and correct decision-making in the securities market is possible when information is timely, relevant, complete and understandable. On the other hand, the type and how to access information are also important. Unequal and asymmetrical data transmission between individuals can cause different results from a subject. Information asymmetry has various undesirable consequences such as decreasing market efficiency, increasing trading costs, low liquidity and generally decreasing the profits of trading in capital markets. These subjects can reflect the importance of information asymmetry and its undeniable influence on economic decisions. The purpose of this study is to investigate the relationship between Accruals and information asymmetry in Tehran Stock Exchange.

Information asymmetry is costly for the investors because it enhances the transaction costs. The finance literature considers the bid-ask spread an important component of the total transaction costs incurred by investors while dealing in securities. (Stoll 1978) The bid-ask spread emerges from the need for a supplier who stands ready in the market with his bid and ask quotes to execute any unfulfilled orders and to maintain liquidity at all times. The bid price represents the price at which the specialist offers to buy shares in the market. The ask price refers to the price at which the specialist offers to sell in the market. The difference between these two prices is called the bid-ask spread.

In recent years, the subject of investment-cash flow sensitivity has been an important and controversial issue among researchers. They argued that financially constrained firms have a larger cost differential between internal and external funds and hence rely more on internal cash for making investments (Arsalan et al, 2006). This paper investigates the investment-cash flow sensitivity and the role of cash holding on reducing this sensitivity in an emerging market, named Tehran stock exchange (TSE).

This research examined the effect of various financing methods and ways of using proceeds provided from these methods on futures stock returns. The financial literature documents two hypotheses, namely security mispricing hypothesis and over-investment hypothesis, which explain the effect of various external financing methods on future stock returns. These hypotheses posit that external financing methods have negative impact on future stock returns. Also, the over-investment hypothesis posits that the negative relation between financing transactions and future stock returns arises when the proceeds provided from these methods are invested in operating activities.

Dividend has a special position among decision makers. Dividend policies depend on several factors. One of these factors is ownership structure. Different stockholders have different interests in relating to dividend. Among stockholders, institutional owners have an influence on companies because of their substantial investments; and can affect companies' policies (including dividend policies). The main goal of this study is the determination of relationship between institutional ownership and dividend policy in Tehran Stock Exchange.

This study examines two theories including static trade-off and pecking order theories which belong to the capital structure’s theories. According to static trade-off theory, firms are searching for an optimum capital structure which maximizes the corporate value. Regarding this theory, firms ask for establishing a balance between benefits and cost of issuing the debts. The benefits of issuing the debts would be the tax deductibility of the interest and conflict decreasing between the shareholders and managers. On the other hand, the cost of issuing the debts would comprise potential bankruptcy cost and conflict between the shareholders and creditors. According to the pecking order theory, regardless to leverage optimal, financing decision through the internal funds would be the priority for firms, and when the internal funds are not enough, they use the external funds; in the meantime, they prefer issuing the debts to issuing the shares.

This study aims at examining earnings quality of family firms and non-family firms in the Tehran Stock Exchange (TSE) to determine whether earnings quality of family firms and non-family firms are significantly different or not. In effect, it demonstrates important differences between family firms and non-family firms in corporate profitability and value, which is important for shareholders, via an empirical method, and expands the boundaries of accounting and financial knowledge in this growing field.