FINANCIAL ACCOUNTING
Year:2010 | Volume:2 | Issue:6|Papers Count:16

Financial market is one of the most important markets in each economy. Fluctuation of stock prices in major industrial countries not only influence their national economy but also affect world economy. Theoretically it is known that there is a firm relation between monetary policy and the behavior of the stock exchange market. Hence, it is expected that there is a relation between monetary variables and stock price index of financial industries. Study of these relations in Iranian economy is purpose of this paper. Theoretical basis of the research model rely upon portfolio and Fisher theory. Monetary variables rely upon portfolio and Fisher theory. Monetary variables such as financial intermediaries, interest rate and foreign exchange rate are supposed to explain the fluctuations of stock price index of financial industries. Long run relation for these variables is focus of our study using ARDL approach. Research findings indicate a firm and positive long run relation between stock price index of financial industry and financial intermediaries, a negative but weak relation with foreign exchange rate and interest rate.

Main purpose of investing in companies stocks is to "increase wealth" This is achieved through "stock return". From many factors that influence the companies stock returns, notably cash flows, profits and dividends can be high lighted. This study reviews the relationship between stock returns and cash flows, profits and dividends in Company adopted the Tehran Stock Exchange in the period of 1387 to 1384. For the research hypothesis test comparing two populations mean (t-student test) was conducted. Results showed that the cash flow data (when alone or as complementary information to other accounting information is used), information content of earnings per share (EPS) has increased. While the research results showed no information content increase of dividends. So it seems that investors and other users of financial statements, should pay more attention to these variables have.

Valuation is the basic topic in financial and investment management. Using valuation models and accounting information investor can maximize their profit by incorporating required parameters. In this research, the effect of financial leverage, dividend policy and profitability on future value of firm will be studied. So, two hypotheses are considered. In first hypothesis the effect of financial leverage, dividend policy and profitability on firm value, and in second hypothesis, the effect of these variables on future value of firm are tested. The populations of this study consist of the listed manufacturing companies in Tehran Stock Exchange within the period of 2001 to 2008. To select the research sample, the systematic elimination method is used, and the sample of 92 companies is selected. Results from using Panel data and regression analysis indicate that both research hypotheses are accepted. In other word, there is a positive relationship between financial leverage, dividend policy and profitability, and firm value exists in our sampled companies. Also, there is a relationship between these variables and future value of firm. Moreover, the findings indicate that by increasing ratios of financial leverage, dividend policies and probability the probability of increasing the companies’ future value increases.

This study examines earning management behavior and its relation with monitoring device of corporate governance. Our empirical tests are conducted by regression analysis using data of 195 listed firms within a period of 1381-1387, using pooling time series and cross-section data. Testing the research hypotheses shows, when managers try to manipulate earnings (underestimate or overestimate earnings), there is little evidence that outside directors and institutional investors Influence abnormal accruals. At last, we find no evidence that monitoring device can restrict aggressive earning management behavior, only when pre-managed earning are below last period’s reported earning, outside directors play little role to influence the likelihood that reported earnings exceed the thresholds.

This paper studies the cash flows forecast models and compares the predictive ability of models based on absolute forecast error. Also, the effect of volatility of operational profits and firm size on predictive ability of each accrual and cash based models has been considered. In these analyses a sample data of 98 listed companies in Tehran stock exchange for the period of 1380 to 1387 has been used. In order to study the effect of each factor on predictive ability of models, spearman correlation has been conducted between the mentioned factors and absolute forecast error.According to the reached results, those models with use accruals information in prediction of cash flows have higher predictive ability than those models with use only the cash flow in prediction. The investigation of spearman correlation showed that with increasing volatility of operational profit, predictive both ability of models decreases, but the predictive ability of accrual and cash flow based models to be increasing with firm size.

Risk Based Audit is the new generation of auditing and dominant approach to fight against fraud, in recent years. The first point toward Risk Based Audit (RBA) approach is clarifying the overall risk that auditor can accept when expressing audit opinion. The way of assessing of audit risk can affect audit planning, audit strategies as well as final results. Auditing standards require risk assessment based on Audit Risk Model (ARM) in each audit case. However, about the assessment of inherent and control risks, they present no approach to assess these risks separately or integrated.Therefore, this research investigates the relationship between the categories of inherent and control risks. The research sample are the members of Iranian Association of CPAs who selected randomly and via questionnaire the importance of each affecting factors on categories of inherent and control risks were investigated. The results indicate that there is no significant correlation between IR and CR, and the assessment separately is preferred to integrated assessment of IR and CR.

By the advent of industrial revolution and emergence of large companies as well as separating ownership from management, the necessity to assess the managers’ performance by investors has gained ever-increasing importance. Many researches have been conducted to recognize the appropriate criteria for evaluating the performance of managers and some practical implications have been achieved. This research aims to study the determinant power of traditional criteria (rate of assets return and operating cash flow) and new ones (economic value-added) in the field of evaluating the basic metals groups’ companies (the research sample). The dependent variable is the economic performance of stock returns  for a period of 1383-86 (2004-2007). Kolmogorov-Smirnov test (KS) has been conducted to determine the normality of data related to dependent variable (stock returns). To test the research hypotheses the correlation coefficient and coefficient of determination are exerted. The results show a significant relationship between economic value added as well as the rate of assets returns and stock returns. On the other hand, we find no significant relationship between operational cash flow and stock returns. Moreover, there is no significant relationship between the determinant power of traditional criteria performance and that of modern ones.

When ownership is separated from management, supervision on management has become very difficult; so some supervisory mechanisms have been suggested to decrease agency costs in companies. The primary purpose of this study is to evaluate the impact of supervisory mechanisms of corporate governance (concentration ownership) on firm's performance. This research tries to answer this question that whether there is a relationship between concentration ownership and firm performance? For hypotheses testing, correlation model is used. In this research concentration ownership is independent variable and firm performance (ratios such as ROE, ROA and P/B) dependant variable. We use the data of 56 companies for a period of 1384-1386. Results show that there is significant relationship between concentration ownership and assets’ rate of return but we did not find any relationship between concentration ownership and ROE and P/B