JOURNAL OF ACCOUNTING KNOWLEDGE
Year:2011 | Volume:1 | Issue:3|Papers Count:7

Institutional ownership is classified in two general groups, short-term and long-term. Short-term institutional ownership because, for the focus excessively on current earnings and short-term incomes can invented various motivations for firm’s managers to do aggressive corporate earnings management. In apart, long-term institutional ownership have long-term investing horizon and focus on stock price rather than current earnings, and so have many stimulant to participated in corporate governance activities so can prevent managers to do aggressive corporate earnings management.The aim of this study is to produce reasons about effect of each group of institutional ownership on the aggressive corporate earnings management in Tehran stock exchange (TSE). This study made upon ex-post factor-descriptive research dozen and for test hypothesis use regression analyses with pool data by way of combination time-series and cross-section with use of financial information of 165 firms which traded over the 1382-1386. The result of this study is in line with prior exceptions and shows that short-term institutional ownerships have positive and statically significant effect on aggressive corporate earnings management, and long-term institutional ownership have negative and statically effect on aggressive corporate earnings management.

Financial market crashes in recent decades have given rise to discussions about excessive volatility in these markets. Some authorities recommend price limits as a device to control excessive price swings, arguing that price limits can provide a cooling-off period that allows investors to re-evaluate market information and make more rational decisions during the period of extreme price changes. On the other side, opponents claim that price limits cause volatility to spread out over a longer period of time, harming the price discovery process and liquidity of the market. These different opinions illustrate the lack of consensus on the effectiveness of price limits. This study empirically investigates the effectiveness of price limits by examining stock market characteristics (such as volatility and volume) around the revision of price limit (from 5% to 2% in 1384 and from 2% to 3% in 1387) on the Tehran Stock Exchange (TSE). The main finding of this study is that for the cross-section of stocks, the change in price limits is negatively related to the change in (weekly) volatility and trading volume. That is, price limit mechanism could not effectively reduce volatility in TSE. The second finding of this study is that the effects of the revision in price limit have no relation with size.

Management earnings forecast is a kind of mandatory disclosure in Iran. A large body of literature on the capital market has emphasized the importance of this forecast. Earnings forecasts influence stock prices resulting in direct market reactions. Accruals represent a key aspect of mandatory reporting. Basically, the environment where the firms are operating in is volatile due to business changes. Therefore, managers’ misassessments have made them unavoidably commit some common errors in assessing their firms’ business prospects.The objective of this study is to examine the association between errors in management forecasts of subsequent year earnings and current year accruals. To do this, we examined the earnings forecasts of listed companies on Tehran Stock Exchange (TSE) during 2005-2008. We tested the hypotheses by using Panel Data Regression and Analysis Multivariate Regression. The results show a positive association between management earnings forecasts and accruals. This positive association is stronger for firms operating in more uncertain business environment.

Data mining methods can be used in order to facilitate auditors to issue their opinion. This paper initially applies two Data Mining classification techniques to develop models capable of identifying auditor’s opinion in Iran. The techniques used are Multilayer Perceptron neural network and Logistic regression. The period of this research is start of 2003 to end of 2009. The input vector is compose of financial data such as financial distress and non-financial data such as firm litigation. The four developed models are compared in terms of their performance. The results demonstrate the high explanatory power of the MLP model in identification of audit opinion. The model developed is accurate in classifying the total sample correctly with rate 87/75%. The model is also found to outperform traditional logistic regression. The result of this study can be useful to internal and external auditors, Investors, creditors, company decision-makers and other stakeholders.

The objective of this research is the effect of issuing financial reports on stock liquidity at Tehran Stock Exchange. For this purpose, stock market liquidity at seven transactional days before event (issuing financial reports) compared to seven transactional days after event. For doing this research, we used data for 57 listed companies in Tehran Stock Exchange for period of 2002-2007. In this research, stock liquidity has been measured using three proxies. Hypotheses of research examined by cross sectional and pooled method. Results show that there is a significant difference between mean proportional spread of stock of price before and after issuing financial reports. Also, there is a significant difference between mean stock price depth before and after issuing financial reports. However, there is no significant difference between turnover rate of stock before and after issuing financial reports.

In this study the relation between ownership structure and earnings quality of firms listed in Tehran Stock Exchange is investigated. In the other words, the influence of institutional ownership, concentrated institutional ownership and manager's ownership on earning quality is examined. Because the earning quality is a multidimensional concept, to measure it in this study, we used qualitative characteristics of accounting information based on Iranian Accounting Standards Board's conceptual framework. Research hypothesis is examined by regression model analysis in 80-86.The results of the study show that the higher institutional ownership is, the better earnings quality motivation for smoothing would be. In other words institutional investors in ownership structure increase reporting of faithful, more relevant, neutral and on time information. Also ownership concentration is less in firms having high quality earnings. By the hand ownership concentration is negatively associated with Representational faithfulness, predictive value and neutrality and is not associated with timeliness. Managers' ownership is negatively related with predictive value and positively associated with timeliness and is not related with Representational faithfulness and neutrality of accounting information.

Strategic alignment is deemed crucial in increasing firm performance. Therefore, this study sought to identify different levels of alignment and then investigated the factors that influence alignment. In particular, it focused on the alignment between the requirements for accounting information (AIS requirements) and the capacity of accounting systems (AIS capacity) to generate the information, in the specific context of industrial small and medium sized firms (SMEs) in Iran. Using a mail questionnaire, data about 151 firms from 249 Firms in T.S.E was collected on nineteen accounting information characteristics for both requirements and capacity. Cluster analysis was used to find two sets of groups which could be considered aligned and not aligned. The study then investigated some factors that might be associated with a small and medium firm’s level of AIS alignment. Findings from the study suggest that AIS alignment was related to the firm’s: level of IT maturity; level of manager’s accounting and IT knowledge; level of managers’ participation in information system implementation; and existence of internal IS staff and internal accounting staff.