FINANCIAL ACCOUNTING
Year:2009 | Volume:1 | Issue:1|Papers Count:10

This research investigates the effect of working capital strategies on the stock returns. The strategies of working capital management are: conservative strategies, aggressive strategies and moderate ones. To determine the strategies, certain financial ratios are used, and to measure the stock returns of the sampled companies any increase in the value of shares in the ending period compared to the beginning period, plus any cash dividends paid is taken into account. In this study, for those companies that their financial ratios are not in accord with any of the defined strategies, they have been called "unknown strategy," which makeup 27 possible cases of the total strategies that have been surveyed. Using filtering method, 62companies from 9 industries are selected form companies listed in Tehran Stock Exchange. The data of the companies have been collected from Tehran Stock Exchange information. By analyzing the one-way and two-way variances, and also by using the LSD test, the multiple averages are studied. For analyzing the data, EXCELL and SPSS software is used. The findings of testing the hypotheses show that there is a significant difference between the average returns of two different strategies. The aggressive strategy had the best result of all.

This research aimed to investigate the relationship between Refined Economic Value Added and Tobin's Q Ratio. On the importance of conflict of interest between owners and managers, identifying some new measure of performance evaluator to better explain and predict management action required. Information and data needed in this study, gathered from Teheran Stock Exchange (TSE) library and other sources of information. Hypotheses after calculating variables were tested by Spearman Rank Correlation. Results of the research (at the confidence level of 95%) clearly show that Refined Economic Value Added is correlated with Tobin's Q ratio. Therefore, we can use Tobin's Q ratio instead of Refined Economic Value Added to evaluate the company performance.

In this study, we investigate the impact of qualitative characteristics of information content (as a measure of evaluating earning quality indicated in financial reporting conceptual framework) on earnings management. The purpose of this paper is to indicate whether or not earnings structure, with a proposed earning quality based on qualitative characteristics of financial information (such as relevance, reliability) leads to better decisions. For this reason we use the data of 107 firms for a period of 1373 (1994) to 1385 (2006). We use regression models for earnings and compare the Earnings Reaction Coefficient (ERC) and R2 to test the research hypotheses. In this study factor analysis is employed to classify sampled firms, into firms with quality and firms without quality. The findings indicate that ERC and R2 related to the earnings and price, increases with the increase in earnings quality, which in turn leads to better decisions. This finding is in accordance with conceptual framework of financial reporting ideas. With regard to the relative preference of investors, our regression models do not produce encouraging results to indicate that, investors have relative preference toward qualities of financial information such as, relevance and reliability.

Data usefulness of financial statements depends on the power of definition and forecasting of company's value that is affected by present and future returns. Stock returns depend on two factors: changes in stock price, beginning and ending price and dividend per share received. The objective of this study is to investigate the relationship between Operating Cash Flow (OCF) and some financial ratios such as Quick Ratio (QR), ratio of net Working Capital/total Assets (WC/A) with stock returns of the companies listed in Tehran stock exchange. The sample of this study consists of 50 active companies during 1380-85 (2001-6) and the required data is collected by using Tadbirpardaz software and for editing and analyzing the research data we used, Excel, SPSS software.The findings as expected indicate that there is positive and significant relationship between operating cash flows and quick ratio with stock returns, but no significant relationship between net working capital/total assets ratio with stocks returns is found. One reason for such findings may be week efficiency of capital market in Iran which causes to lack of reflection of all existed data in stocks prices and stock returns.

Using the traditional investment appraisal techniques for investment projects, such as discounted cash flow techniques (IRR, NPV ...), in the face of uncertainty, flexibility and management flexibility lead to incorrect assessments. Therefore, due to these shortcomings using real options idea tend to obtain correct project value which influence firm’s value leads to a better project assessment. First step is to ask whether Iranian corporate managers are aware of the real options when assessing investment projects. Next question would be how they implement the real options idea in the face of environmental uncertain, changing interest rates, amount of investment outlays and R&D cost. In this study we have selected 117 companies from listed companies in Tehran Stock Exchange. By sending out questionnaires we have obtained our data and using linear regression models tested our four hypotheses. Results indicate that the amount of investment outlays, changing interest rates, environmental uncertain and R&D cost have impact on the use of real options by respondents.

Generally, cost accounting systems are important in the developed countries and the managers of the business entities use the provided information by these systems for decision making. In these countries, the increasing competition causes the managers to consider the prices and quality of the products to be successful in the competitive markets. This paper investigates the issue of considering the cost accounting information by Chaharmahal and Bakhtyari Province Production Companies Managers in the decision making.This survey uses a questionnaire for gathering the managers’ perception on the issue. The purpose of this study is to investigate the usefulness of cost accounting information in the decision making by Chaharmahal and Bakhtyari Province Production Companies’ Managers. The results indicate that the managers of the province consider the cost accounting information in decision making and the information meet their informational needs.

This research investigates effective factors on financial problems and of active the co-operations in Kurdistan province. Furthermore, some characteristics like: shortage of accounting knowledge, unsuitable controlling methods, weakness of stockholding culture, inactive entities and not choosing the correct economic activity have been investigated. The findings of this research show that shortage of accounting knowledge and unsuitable controlling methods affect financial problems and difficulties of co-operations. Weakness of stockholding culture, inactive entities do not have any effect on financial problems and difficulties of co-operations. Moreover, not choosing the correct economic activity has not any effect on co-operations.

One of the most common criterion based on value which has been considered in recent years, is called EVA. This study has analyzed the ability of EVA to present information related to the firm's value and tries to compare it with some other criterion such as operational profit and not profit. In fact this paper is aimed to determine the correlation coefficient between the economic values added, net profit and operating firm's market values in Tehran stock exchange.This research is an empirical one, which investigates the relation between variables by using regression method and Pearson's correlation coefficient. The methodology of this research is past event study.Population of this study includes all Iranian firms listed in Tehran stock exchange, except investing and financial firms. We use the data of 77 firms over the period 1380-1386 selected from Tehran stock exchange. The results of this study has shown that although the coordination of EVA with market value is remarkable, but compared with operational and net profit, it is less capable.