JOURNAL OF ACCOUNTING KNOWLEDGE
Year:2019 | Volume:10 | Issue:1 (36) |Papers Count:8

Objective: Default is one of the most abrasive events in the life of a corporation. Costs and risks inherent in this event have caused that various models have been devised and introduced over the past four decades to predict and measure it. Considering the importance of the subject, this study aims to present an appropriate model for predicting corporate default in the selected industries in Tehran Stock Exchange, TSE, using a sample of 100 firms. Method: In this study, first, the factors affecting corporate default were identified by conducting library research and applying the fuzzy Delphi method. Then, using partial least squares structural equation modeling (PLSSEM) technique, corporate default drivers were introduced, and the model for predicting this event in TSE was extracted and presented. Results: The findings showed that the following ratios could be considered as corporate default drivers in TSE: net income to total assets, earnings before interest and tax to total assets, retained earnings to total assets, current assets to current liabilities, net working capital to total assets, cash to current liabilities, current liabilities to total assets, total liabilities to total assets, cash flow from operating activities to sales, and cash flow from operating activities to total liabilities. Conclusion: It was found that in TSE only accounting ratios were introduced as corporate default drivers, and other potential drivers including market variables, macroeconomic indicators, non-financial factors, and earnings quality measures did not play any role in corporate default prediction.

Objective: This research investigates the impacts of concentration on customer upon capital structure and debt maturity in the companies listed in the Tehran Stock Exchange, TSE. Method: To test the hypotheses of the research, multiple linear regression model has been used. To measure capital structure and debt maturity structure, we used financial leverage and long-term debt ratio, respectively, and to determine concentration on customer, we examined the three variables of the ratio of major sales (sales above 10 percent) to total sales, the Herfindahl-Hirschman Inex, and the dummy variable of existence or lack of major customer. The sample includes 140 companies in the TSE in the years 2011-2016, regarding the constraints of this study. Results: The evidence showed that there is a significant positive relationship between concentration on customer and capital structure. In other words, in the companies with major customers, the rate of financial leverage (debt) is higher the others. Also, in these companies the debt maturity structure is longer. Conclusion: The results imply the importance and effectiveness of company's major customers in increasing the capital structure (financial leverage) and the debt maturity structure.

Objective: This study investigates the effects of financial constraints on the crash risk of future stock price in the years 2010 to 2017, considering the effects of abnormal accruals. Methods: The data was collected by documentations review method and referring to databases, and was analyzed by Stata and Eviews software. Panel data model was applied to test the research hypotheses. Results: The test results showed that the financing constraints increase the likelihood of crash risk of future stock price. In addition, the findings of the research indicated that the positive impact of the financial constraints on crash risk of future stock price will be exacerbated by the effect of the accruals Conclusion: In the companies with financial constraints, the possibility of accumulation and hiding bad news by manager in search for financial resources will increase. Also earnings management and bad news hiding by managers will go on by the use of the accruals.

Objective: Earnings are one of the most important factors influencing economic decisions, so corporate executives may manage the earnings to show stability in improvements and efficiency. Managers can manipulate the earnings by choosing discretionary accruals or regulating company's actual activities. If the accounting system of a company and its results are comparable, managers' motivation for opportunistic behavior of earnings management reduces, and as a result, external users can analyze the company's actual economic performances more accurately. The purpose of this study is to investigate the relationship between accounting comparability and the accrual-based earnings management, and then, the result for real earnings management in the companies listed in the Tehran Stock Exchange, TSE. Methods: This research is an applied study and the correlation-based in the nature. The sample consists of 122 firms in the TSE in the years 2011 to 2015, chosen by the systematic deletion method of sampling to reach the main sample. To examine the relationship between variables, multiple regression and generalized least squares methods were used. Results: The results showed that when the company's accounting system provides comparable figures, the company's accrual-based earning management decreases, and so managers to handle their earnings manipulate their real activities, which lead to increase in real earnings management. Conclusion: Based on the results of the research, firms' managers are recommended to pay more attention to the comparability of financial statements due to its importance in earnings management.

Objective: The purpose of this study is to analyze the simultaneous effects of liquidity and agency cost on tax avoidance, considering the profitability of the companies listed in the Tehran Stock Exchange in the period 2012 to 2016. Method: Three hypotheses were considered based on the simultaneous impacts of variables on tax avoidance. The data were collected by referring to databases as well as documentations review. Data analysis was performed, using a 2sls method in Eviews. Results: The results showed that profitability has the ability to explain the impacts of each of the variables of liquidity and agency cost as endogenous variables, properly. According to the results of simultaneous equations analysis, liquidity has positive impact and agency cost has negative impact on tax avoidance. Conclusion: More focus on profitability can be useful in improving the economic decisions of investors, and the analysis of the effects of variables such as agency cost and liquidity on tax avoidance in the companies with no regard to profitability will not lead necessarily to proper outcome.

Objective: The purpose of this study is to investigate the effects of at least one female delegate in the board of directors and in audit committee (gender diversity) on earnings quality, using the data analysis of 152 companies listed in the Tehran Stock Exchange in the years 2011-2016. Methods: Data collection was done by the archive-based method, and the hypotheses tests was carried on by regression analysis, using the unbalanced panel data method. Results: Findings showed there are significant impacts of women's participation in audit committee on the earnings quality. But conversely, the results showed that gender diversity in the board of directors has no significant effects on the company's earnings quality. Conclusion: The presence of women's representatives in the leading members of firms results in improvements in monitoring the management and the quality of financial reporting. This increases the independence of the board of directors and audit committee and, as a result, improves earnings quality.

Objective: This study examines the bilateral (two-sided) relationship between information disclosure with stock price synchronicity and the crash risk of falling stock prices in the companies listed in the Tehran Stock Exchange, TSE, in the period 2008 to 2015. Method: Data was collected by documentations review and referring to databases, and the data analysis was inferential. To test the research hypotheses, the system of simultaneous equations by two-stage estimation method was estimated. Results: The results of the estimation indicated there is a bilateral relationship between information disclosure with stock price synchronicity and crash risk of falling stock prices in the TSE. Conclusion: The verified bilateral relationship is compatible with the agency and signaling theories. The agency theory implies that the increase in disclosure level results in decrease in information asymmetry and in crash risk of falling stock price, and rise in control or governance over performance and in investors trust. Also, the signaling theory suggests with regard to increase in the crash risk of falling stock prices, managers attempt to release good news and to delay publication of bad ones.