FINANCIAL ACCOUNTING
Year:2014 | Volume:6 | Issue:23|Papers Count:13

Cost stickiness has received much attention in the accounting literature. Prior studies have predominantly explained cost stickiness with economic factors, but they ignored the impact of corporate governance on cost behavior. This study aims to investigate the role of corporate governance mechanisms on sticky cost behavior of Iranian companies by using the panel data approach. The sample is comprised of 212 companies listed in Tehran Stock Exchange (TSE) during the period of 2007-2012. This is a fundamental research according to the purpose, and a correlation (non experimental) research according to the data gathering approach. After controlling for firm-specific variables, the results imply a positive relationship between corporate governance and the degree of cost stickiness. The overall evidence suggests that the corporate governance provides an important explanation for asymmetry behavior of costs. Furthermore, the results demonstrate that disaggregating corporate governance measure into more components cause to decreasing in explanatory power of the models and make them insignificant.

This paper investigates the relationship between disclosure quality, its components (timeliness and reliability) and stock price delay in firms listed in Tehran Stock Exchange from 2003 to 2011. Furthermore, this paper investigates the association between the accounting and non-accounting components of stock price delay with future stock premium. To this end, the panel data approach and Fama-Macbeth (1973) model is applied. The research results show that the increase in total disclosure quality and timeliness of financial reports decreases the stock price delay. On the other hand, in firms those have higher disclosure quality and financial information issue in timely manner, the reaction speed of stock prices to issued information is higher than that of other firms. Also, the results indicate that there is a positive and significant association between the accounting and non-accounting components of stock price delay with future stock premium. This means that, to investment in firms with higher stock price delay, the stock holders claim the higher rate of return.

In this study, the impact of type of institutional ownership on future stock price crash risk of companies listed in Tehran stock exchange (TSE), based on data from 80 companies during the years 2005-2013 is investigated. In this regard, one main hypothesis and two sub-hypotheses are set. The statistical methods used in testing hypotheses are logistic and panel data regression. Findings show that institutional ownership is positively associated with future stock price crash risk. But, after dividing institutional ownership into active and inactive, the results indicate that the positive impact of institutional ownership on future stock price crash risk posed by inactive institutional ownership. In other words, active institutional ownership (inactive institutional ownership) is negatively (positively) associated with future stock price crash risk, consistent with findings that active institutional investors more actively monitor management than other types of investors.

The purpose of this paper is to study the factors affecting capital assets investment decisions. In this research, the effective factors are cash, company size, leverage, and dividend and investment opportunities. To proceed the study, five hypotheses are formulated for a sample of 115 companies listed in Tehran stock exchange during the period, 2005 to 2012. For data analysis and hypothesis testing, multivariable regression and compound data have been used. The results of this research shows that cash and investment opportunities have positive and significant effect on investment decision. Also the company size, leverage and dividend have negative and significant effect on investment decision in capital assets.

This study aims to evaluate the effectiveness and independence of the board of directors on agency. The greater the number of board members as well as its independence as a regulatory mechanism to reduce agency costs considered. Also, the ratio of operating costs to sales and asset turnover as a measure of agency costs is used. A sample of 110 companies listed in Tehran Stock Exchange for a period of 2005 to 2012 are studied. In this study panel data regression analysis is used. The results suggest that the increase in board members, managers will enhance monitoring activities thus, the ratio of operating costs to sales and asset turnover (efficiency) are increased.

Financing methods are among the most important and critical factors affecting the growth. Making an appropriate combination and balance of internal and external finance can insure the firm growth and increase shareholders’ assets considering the firm status into account. In the present study, the relationship between financial leverage and firm growth has been studied and its sensitivity due to cash flow was investigated. So, the simultaneous effect of internal and external sources of finance on firm growth is studied. The research sample consists of 88 listed firms in Tehran Stock Exchange over the period 2007-2012. Those firms had the basic primary conditions necessary for the research are selected as sample firms. The Generalized Method of Moments (GMM) estimation, Eviews software and Stata software are used to analyze the data and test the hypotheses. The results show that firms with high financial constraints exhibit higher sensitivity to cash flow and there is a nonlinear inverted U-shaped relationship between growth and debt exposure.

This paper survey the cash flow sensitivity of cash holdings in the presence and absence of information asymmetry in the companies listed in Tehran Stock Exchange. Specifically to determine the cash flow sensitivity of cash holdings under symmetric information and asymmetric information are investigated. Thus, data collected over a period of 2001 to 2013 for a sample of 96 companies listed in Tehran Stock Exchange. To test the research hypotheses regression models are used. The results show that information asymmetry affects the sensitivity of cash flows, and the level of impact is higher compared to the situation of having symmetric information. The information asymmetry increases the opportunities for managers’ personal benefits, which in turn increases the impact on the cash flow sensitivity.

In capital markets and behavioral finance literature, according to the different reaction of investors and in order to increase the efficiency of capital and achieving returns in excess of the expected return, different investment strategies are presented and recommended. One of these strategies is, contrarian investment strategy, which is based on the investors’ overreaction hypothesis. Knowing how to use a contrarian investment strategy can help Investors in choosing the right stocks in order to achieve maximum efficiency. The research sample consists of 152 listed companies in Tehran Stock Exchange for a period of 2003- 2011. In this study first, the research period is divided into 16 intervals to form Portfolios then companies divided to two portfolios of winners and losers, based on 8 variables such as return on assets, return on equity, sales return, operating profit, operating cash flows, stock return and EPS. In test period, the winner and loser portfolio efficiency was calculated and compared. The results of testing the research hypotheses show that by using contrarian investment strategy additional efficiency can be gained in Tehran Stock Exchange. Also investors in different periods of establishment and testing, show overreaction towards certain variables.