JOURNAL OF ACCOUNTING KNOWLEDGE
Year:2017 | Volume:8 | Issue:1 (28) |Papers Count:7

The purpose of this study is to examine the joint effects of corporate governance and earnings management on stock liquidity, measured by trading volume. In this study, the data was collected from 154 companies listed in the Tehran Stock Exchange, in the period 2008 to 2015. The tests of hypotheses were carried out, using ordinary linear regression method. The results showed that the relationship between the two corporate governance variables, measured by the concentration rate of audit committee and the independence rate of directors, is significantly positive, and that the relationship between the other mechanism variable, called as ownership concentration rate and trading volume is significantly negative. Also, it was concluded that the relationship between earning management and trading volume is significantly negative. The earning management variable was measured by Defond and Park model, using difference between the realized working capital and the expected working capital to sustain current sales level. When we examined the joint effects of corporate governance and earnings management on stock liquidity, controlling the former to explore the potential effects of the latter, the result showed lack of significant relationship between earning management and trading volume.

Change in operating cash flows along with uncertainty about rate of the change in future cause variation in firm’ s investment. This study aims to examine the effects of cash flow volatility on firm’ s investment, regarding restriction in financing sources. To test the hypotheses, data from a sample of 129 firms listed in the Tehran Stock Exchange in the years 2006 to 2013 were collected, using GLS method of regression estimation. Findings showed that in the firms with restricted sources of financing and the growth rate of operating cash flow, changing from positive to negative rates, or vice versa, the operating cash flow volatility decreases firm’ s investment. Also, it was found that the negative growth rates have greater effects on firm's investment, than the positive growth rates. However, in the firms with no restriction in financing, there is no relationship between operating cash flow volatility and firms’ investment.

Disclosure of companies’ information, which is not easily available for stakeholders, is incomplete and impartial. When the disclosure is done deliberately, managers exclude and hide some parts, or present some other parts unclear to protect their jobs. This is called impression management of stakeholders. This study aims at strategy review of impression management of voluntary disclosure at current state. This requires measuring the effects of circumstances of current performances, financial distress and family ownership rates on voluntary disclosure measure, and then, on future performances, regarding stakeholders’ understanding of disclosed information. The statistical population consists of companies listed in the Tehran Stock Exchange. The findings from hypotheses tests of multivariate regressions showed that current performance and the level of companies’ financial distress have significantly positive relationships with the level of voluntary disclosure of information. Also, there is significantly negative relationship between the rate of family ownership and the level of voluntary disclosure. However, there is no significant relationship between future performances and the level of voluntary disclosure.

Corporate Social Responsibility (CSR) for accountability in business could be regarded as the fundamental issue for organizational behavior in a society, and as the determinant of the environment for business expansion and the net worth of resources, as well as business responsibility against stakeholders. This study aims to examine the relationship between CSR and the crash risk of stock price in future in the companies listed in the Tehran Stock Exchange (TSE). To measure the CSR, 24 items of the report of board of directors, and to measure the future stock price crash, the negative conditional skewness of firms’ monthly returns, and then, down-to-up volatility of the stock prices in a financial year, were determined. The tests of hypotheses were carried out in pooled and panel data models, using data from sample firms in the TSE in the period 2009 to 2013. The findings for the first hypothesis showed that there is not significant relationship between CSR and future stock price crash, regarding the conditional skewness measure. However, the findings for the second hypothesis indicated that there is significant negative relationship between CSR and future stock price crash, regarding down-to-up volatility measure of the stock price.

Tax avoidance appears when there are legal gaps in tax laws, easing to reduce taxes, and occurs by transferring income to low tax regions or by transfer pricing. In the most of previous researches, the emphases were on certain features of companies, representing factors affecting tax avoidance, and in some recent studies, the personality features of corporate managers were regarded as significant determinants of tax avoidance. In the latter, managerial ability was shown as determinant of tax avoidance. This study aims at re-examination of the effects of managerial ability on tax avoidance, using a sample of 106 companies listed in the Tehran Stock Exchange, TSE, in the years 2007-2015. The measures indicating tax avoidance for firms in the TSE, were the effective rate of cash tax and the difference between accounting earnings and taxable earnings. To proceed with the research objectives, two hypotheses were taken on and tested, using multivariate linear regression method. The findings showed that managerial ability has significant positive effect on tax avoidance in the TSE. Also, the findings showed that the size of the company and financial leverage have significant indirect effects on tax avoidance.

The aim of this study is to investigate the effects of managerial ability on tax avoidance in companies listed in the Tehran Stock Exchange (TSE). Tax avoidance was determined by the effective tax rate and the book difference of taxes. Managerial ability was measured by the rate of return on assets as the indicator in the traditional approach, and by data envelopment analysis (DEA) method, introduced by Demirjian et al. (2012), as the new approach. The sample consists of 81 companies in the TSE, in the period 2006-2014. To test the Hypotheses, multiple regression method was used. The results indicated that managerial ability has significantly negative effect on tax avoidance that is consistent with the agency theory. The other findings showed that tax avoidance and its interaction with managerial ability lacks significant effect on companies’ market value, and hence, cannot affect the investors’ behavior in the capital market.

This study aims to examine the relationship between corporate governance and corporate economic performance, regarding the moderating effect of firm size. To test the hypotheses, multivariate OLS method was used. The data consists of 118 companies listed in the Tehran Stock Exchange in the period 2010 to 2014, and totally 708 company-years. The findings showed that corporate governance and corporate economic performance are positively correlated, and that firm size may enhance this relationship.