FINANCIAL ACCOUNTING
Year:2010 | Volume:1 | Issue:4|Papers Count:12

A large number of financial information users are using the earnings for measuring firm performance. Another measurement tool for this purpose is net cash received. When the cash flows statement was not mandatory for preparation, earnings was the only performance measurement criteria, but after that the cash was the next one.  However, there are many people who are adapting earnings for their evaluation purposes yet. This paper investigates the ability of both earnings and cash flows to measure firm performance. For this purpose, we investigate the data for 82 listed firms in Tehran Stock Exchange the period 1379-1386. The results show that in the shorter the performance measurement interval the earnings has stronger relation to the firm performance (stock return). Besides, when the firm's operating cycle is getting longer, the relation between firm performance (stock return) and cash flows is getting stronger. On the other hand, accruals play an important role to reflect firm performance. However, if the absolute amount of accruals is large, the relation between earnings and stock return will be weaker than the relation between cash flows and stock return.

The aim of this paper is to investigate and explain the effects of financial factors on stock price index by using structural equation model in Tehran stock exchange. Based on literature review of price index from the population of 500 members under study a sample of 150 elements is selected. The required data is collected using instruments such as documents review, interview and questionnaire. as non-experimental survey research and specially the questionnaire launched in this study has reliability of 0.86 and constructed with emphasize on structural equation model using Lisrel software. The results shown in the entire factors financial statements disclose, financial openness, ROA and P/E have effect on TEPIX. Base on coefficients of structural equation model financial openness have most effect on TEPIX. Finally, it presents concluding, discussion, suggestion for managers, and directions for further research.

This study investigates investment in capital assets and internal and external financial constraints facing companies listed in Tehran Stock Exchange (TSE). A sample of 148 manufacturing companies is selected for a period of 1378-1387. In this study we use the ratio of earnings to ownership equity as internal financial constraint and Size of the company as external financial constraint. Statistical analysis and test of the hypotheses is conducted using ECM method. Results indicate that there is a positive relationship between firm size and investment sensitivity towards cash flow. Therefore, by increasing external financial constraint, the investment sensitivity towards the cash flow also increases. Further findings show that there is a negative relationship between operating cash flows and investment sensitivity towards the cash flow. Therefore, by decreasing internal financial constraint, the investment sensitivity towards cash flow also decreases. 

This study outlines major differences between basic metals and mining industry groups and oil products and chemical industry in Tehran stock Exchange for earnings-management behavior. For this purpose, we focus on discretionary accruals as the proxy of earnings management. Our accrual model builds on an extended version of the modified Jones (M-J) model as a criterion for the diagnosis of earning management over the period1381- 1386. We tested our earnings management motives (EMM) model using appropriate panel-estimation techniques. Findings provide evidence that company size and debt contracts are stimulator in both the industry for earning management but small loss avoidance is only in the industry oil products and chemical products. In addition between the deviation of operational activities and earning management in two industry with a significant relationship was not found. Our results provide evidence that incentives for earnings management for basic metals and mining industry groups firms are specifically linked to firm size and contractual debt costs. However, oil products and chemical industry groups firms show specific incentives matched with a small loss avoidance.

The firms' capital structure plays an important role in investment decision making and therefore in firms performance. The effect of capital structure on firms performance measurements have studied in previous studies. The aim of this study is survey the relationship between capital structure and Market Value Added in Tehran Stock Exchange. Therefore 189 sample firms that their required data for a twelve years period (1375-1386) was available are selected. The panel data regression is used to examine the hypotheses. Signification of the models is examined by t and F statistics. The conclusions indicate that changes in capital structure explain 49 percent of changes in firms' performance.

The purpose of the present study is to investigate the role and position of free cash flow as a low-cost internal financial resource compared to other financial resource in making managerial decisions. It also seeks to examine the relationship between the free cash flow and dividend policy, considering the two variables; investment opportunities and the size of the companies. According to the free cash flow theory and Jensen theory (1986), large companies, having different ways of procuring financial resources, as well as companies with low opportunity of investment, are expected to have high free cash flow. For the purposes of this study, 125 companies were selected from among the Tehran stock exchange. the analysis of the data was carried out, using the correlation matrix, Pearsons correlation coefficient and the linear regression. The results of the study showed that managers of the companies in their decisions regarding dividend policy consider the three factors; free cash flow, investment opportunities and size. The results confirm the free cash flow theory, and the data from the financial statements of the companies under study proves that the Jensen theory holds true at Tehran stock exchange.

In this research we investigate the impact of firm specific attributes (earning permanence, size, financial leverage and firm growth) on informational content of earning and operating cash flows in explaining security return. Therefore, four hypotheses are set up. Regarding the theoretical basis and the literature of the research, three regression models are used for data analysis. In this research the companies listed in Tehran stock exchange during 2001-2007 are studied. The results of analyzing data indicate that all hypotheses except for second hypothesis on compound data levels are acceptd.

This study investigates the relation between earning per share changes and return on equity changes with return on stock changes in listed companies in Tehran Stock Exchange. The source of information for many of those who require to evaluate financial performance and make decisions about a company is annual financial statements and ratios. We concentrate on changes in earnings per share and the stock returns.The population of this study includes all listed companies in Tehran Stock Exchange and a sample which is selected from different industries during about 1381-1385.  The aim of this study is to forecast the changes in the stock returns using the earning per share changes and return on equity changes. Based on this aim three hypotheses has been considered and analyzed by simple regression methods. The results show only the second hypotheses has been confirmed and there is a correlation between return on equity changes and return on stock changes. Away that 2.4%of changes in return on stock can be explained with the return on equity changes.