FINANCIAL ACCOUNTING
Year:2017 | Volume:9 | Issue:35 |Papers Count:7

The comparability of financial statements plays an important role in the usefulness of financial information to stakeholders in their decision makings. Improving the comparability of financial statements is one of the goals of the standards setters, which requires identifying the factors influencing comparability. In this study, several approaches have been used to measure comparability, and then the factors affecting the comparability of financial statements in 120 listed manufacturing companies in Tehran Stock Exchange during the period from 2005 to 2015 have been investigated. To analyze the data and test the hypotheses of the research, panel data and multivariate regression method (with controlled effects of years and industries) have been employed. Findings show that audit quality, earning management, company size, and asset return volatility have a significant relationship with the comparability level of financial statements.

One of the information that investors consider important are signals that are emitted from the firm’s future value. And one of the factors affecting the signals is Abnormal Earnings Growth Forecast of the firms. In this study, we analyze the impact of ex-ante abnormal earnings growth on earnings response coefficient. To aim this goal, 67 company’s information for the time period 2011-2015 was studied. The compound data ways used to test research hypothesis by multiple regression. Research results show that there were a positive and meaningful relationship between the ex-ante abnormal earnings growth and earnings response coefficient. So it can be argued that Abnormal Earnings Growth Forecast is an important factor in determining the Earnings Response Coefficient and Earnings Quality of companies.

According to psychological theories, managers’ behavior is influenced by some specific characteristics, among which religion is of great importance. The results of recent research indicate that managers’ religion can mitigate their opportunistic behaviors in hiding corporate bad news, and thus reduce stock price cash risk. Following this argument, therefore, the current study employs structural equation modeling method to investigate the association between the level of managers’ religion and stock price crash risk. To do so, the negative skewness of stock return was used to measure stock price crash risk, and to measure the level of religion, the questionnaire designed by Khodayarifard et al (2010) was employed. The questionnaire was sent to 124 firms, among which 91 firms responded and thus considered in the statistics analyses. After verifying the good-fitness of the measurement and structural models, the findings revealed that managers’ religion level prevent them from hiding corporate bad news, thereby reducing stock price crash risk. Additionally, consistent with the predictions made by replacement theory, the results indicate that corporate governance weakens the negative relation between religion and corporate stock price crash risk.

Different pricing models for determining expected returns, such as portfolio theory, capital asset pricing model, and arbitrage pricing theory have been proposed, but none of these models are in accordance with the reality of the market. Traditional models, also have important weaknesses. So, models have not enouph efficiency for users. The present study’s aim is modeling the relationship between the adaptive market variables and simultaneous effect and interaction of the variables. For this purpose, 101 companies listed in Tehran Stock Exchange were selected during the 11 year study period (from 2005 to 2015). The research method is based on the cause and effect model of system dynamics. The results showed that demand for shares, stock price, price to earnings ratio, stock return, audit opinion, firm risk (return on assets and debt ratio), institutional shareholders, deals volume, volume of basis stock, number of issued shares, earnings per share, and market value to book value ratio, have significant effect on each other in the cause and effect model of adaptive market, considering mutual relationship. Also, return on equity, capital structure and net income had not significant impact on stock returns.

One of the decisions made each year by managers that relates to long-term corporate decisions is the dividend yield among shareholders. To make the right decision in this regard, quality financial reporting plays a crucial role as a source of information. In empirical research, the impact of financial reporting quality on dividend policy is of great importance to researchers. How it affects the three channel, the free cash flow problem, financial constraints, and the Quiet life problem is justifiable. For this purpose, this study examines the effect of financial reporting quality on dividend policy through the three mentioned channel. To test the hypotheses, sample of 113 companies from among the companies listed in the Tehran Stock Exchange during the years 2010 to 2016 was selected. For the data analysis and testing hypotheses, panel data regression model has been used. The results of the research show that financial reporting quality has a positive and significant effect on dividend policy and this positive association is more pronounced among firms with more severe free cash flow. The findings also, Also, the findings did not provide enough empirical evidence to support the impact of the financial reporting quality on dividend policy in firms with a high financial constraint. The impact of financial reporting quality on dividend policy is less among firms with higher ownership by monitoring-type institutional investors.

The net profit of any business entity for a particular time period can be conceptualized as the final outcome of its investing, financing and operating activities. These activities are influenced by Management’s decisions and several internal and external environmental factors. This paper investigates how profitability of firms, for 125 public limited companies listed at Tehran Stock Exchange for a period of 2006-2013, is influenced by working capital management and capital structure of firms. The dependent variable is Earning before Interest and Taxes (EBIT) as a measure of profitability. The independent variable are current ratio (as representative of the result of working capital management policy) and financial leverage (as the bench mark for capital structure). Supplementary variable were also undertaken to assess the impact of operating leverage and firm size on profitability. The regression results show that negative relationship between the Profitability measures of firms and Current Ratio and a posetive relationship between the profitability measures of firms and degree of Financial Leverage.