JOURNAL OF ACCOUNTING KNOWLEDGE
Year:2017 | Volume:7 | Issue:27|Papers Count:9

This study aims to provide a comprehensive ranking model of companies listed in the Tehran Stock Exchange (TSE), using accounting information, balanced scorecard and PAPRIKA technique. To do this, the important criteria in ranking studies were applied to103 firms in the TSE (1133 year-firm) during 2004-2014, using PAPRIKA technique. After recognition of principal factors by factor analysis based on KMO indexing and Bartlett’s test, rakings’ criteria were provided for the participants to determine their preferences, using 1000Minds software (PAPRIKA-based). Then, based on cumulative preferences, ranking of firms were provided in terms of three approaches of accounting information-based ranking, balanced scorecard-based ranking and combined ranking method.To test the hypothesis concerning the explanatory power of approaches, using regression analysis and the scores from the PAPRIKA technique as dependent variable and the criteria from the three approaches as explanatory variables, the mathematical models of the approaches were specified, and the explanatory power and accuracy of them, supported by Vuong test, compared with each other. The findings indicated that the explanatory power and accuracy of the balanced scorecard-based ranking model, and the combined model are significantly greater than the accounting-based ranking model. Also, the explanatory power and accuracy of the combined model are significantly greater than the balanced scorecard-based ranking model. Thus, the combined model represents great advantages in comparison with the two other models.

Increasing earnings quality raises costs and benefits together. Also, product market competition affects economic variables with multiple impacts. These resulted in conflicts over findings from the researches regarding regression analysis for the relationship between earnings quality and competition in product markets. In these researches, inconsistent results showed that actual relationship between the two variables is of nonlinear form.In this paper, the nonlinear relationship between earnings quality and product market competition has been studied. To measure competition in the product market, total business environment and homogeneity of the production in the market were considered in general, and earnings qualities along with market competition were measured by three and for criteria, respectively. Also, in addition to firm-year values, industry-year values were used to test the proposed hypotheses in different states. The data from 91 companies listed in the Tehran Stock Exchange in the years 2008-2013 were used. The findings from nonlinear regression analysis showed an inverted U-shaped relationship between earnings quality and competition. But, this was not held for potential competition. These findings were also remained unchanged when the study turns from firm-year values to industry-year values.

This study aims to investigate the tendency to the use of continuous auditing by internal audits in the companies listed in the Tehran Stock Exchange. The concept of continuous auditing backs to two decades ago, but despite its numerous advantages, the acceptance and use of it has been much slow. In this study, we interviewed with internal auditors in 75 companies to determine the state of use of continuous auditing.Using the unified theory of acceptance and use of technology, we found that there exist six reasons for the tendencies to the use of continuous auditing by internal auditors. Among them, ease of use, organizational support and social influences are the most important determinants of the tendencies. Also, of the remaining reasons, annual sales volume and voluntary use of auditing services moderate the relationship between organizational support and social influence, significantly. The last reason, promoting auditing function and specialty, could not be considered valid predictor for the proposed tendencies.

A reason for acquisitions is that target firms, prior to being acquired, are financially constrained, and that the firms often finance their investments by internal resources. But, after acquisition, the constraints reduce and access to financial resources increases. This study developed a panel data regression model, using a sample of firms acquired by other firms, listed in the Tehran Stock Exchange in the years 1384 to 1393. The findings showed that the level of cash that target firms hold, and the sensitivity of cash to cash flow, as well as the sensitivity of investment to cash flow after acquisition decline, while investment increases. Thus acquisitions relieve problems on financial constraints in the target firms so that they may make investment decisions by reliance on access to both the external and internal financial resources.

The purpose of this study is to investigate the relationship between management uncertainty and audit fees in the companies listed in the Tehran Stock Exchange, TSE. Four hypotheses were developed and data from 81 companies in the TSE in the period 2006 to 2014 were analyzed, using a regression panel data model with fixed effects.The findings indicated that there exists a significant positive relationship between management uncertainty and audit fees. Also, the size of audit firm and auditor tenure have significant positive effects on the relationship between management uncertainty and audit fees. In addition, the findings showed that in the cases of loss in a company before changing CEO, the positive relationship between management uncertainty and audit fee is prominent. In general, the findings confirm the claim that auditors increase audit efforts (reflected in audit fees) to determine the risk associated with management uncertainty.

The purposes of this study are to explore the factors relating to the information systems in an organization, and to explain the degree of adaptability of management accounting with those factors. Also, it is aimed to examine whether management accounting adaptability is a suitable predictor for management accounting effectiveness, or not. In this study, the sample consists of the Iranian companies from all industries. To examine the internal consistency of the constructs, exploratory factor analysis was used, and to examine the assumed relationships between the constructs, a partial least squares modeling was developed.The findings suggested that information system flexibility is a driver of management accounting adaptability, while there was no significant direct relationship between integrated information systems and management accounting adaptability. Further analysis revealed that there was a moderating effect of information system flexibility on the relationship between integrated information systems and management accounting adaptability. The findings also highlighted the importance of shared knowledge, values, and communication between stakeholders and information system in the proposed relationship. Finally, the research findings showed that management accounting adaptability leads to management accounting effectiveness due to systems’ ability in providing relevant information in continuous basis that is consistent with management accounting theory.

The purpose of this study is investigating the effects of corporate governance mechanisms on managerial optimism in the companies listed in the Tehran Stock Exchange, TSE. In previous studies on behavioral corporate finance, it was indicated that managerial optimism can affect the decisions about company’s activity that may lead to decreasing value of the activities. In this study, the statistical population consists of the companies listed in the TSE, and based on the sampling condition, 125 companies in the period 2010 to 2014 were selected. The collected information from the sample was used in estimation modelling of multiple regressions.In the sample, the optimist managers were recognized by their proxies of earnings forecast and the number of optimistic forecasts to the number of total forecasts. The findings from multiple regression model showed that among a number of chosen mechanisms of corporate governance, including managerial ownership, ownership concentration, and board characteristics, which include non-duality, board size and board independence, only managerial ownership and board independence may reduce the level of CEO’s optimism, and that the other variables have no significant effect on the dependent variable. In addition, it can be claimed that corporate governance should move towards new role entitled as behavioral corporate governance by recognition of behavioral bias.