FINANCIAL ACCOUNTING
Year:2014 | Volume:6 | Issue:21|Papers Count:11

This article studies Iran’s emerging stock market. Using data of stock returns, size and volume of 45 most traded firms listed in this market, over the period of 2007–2011. This study looks at the crucial question of pricing efficiency, examining the relation of current prices, size and volumes to future returns. We apply the analyses of Jegadeesh and Titman (1993) and DeBondt and Thaler (1987) in this developing market. There is no evidence of short-term “contrarian” and “momentum” behavior. But contrarian profitability is seen over intermediate (3-9 month) and long (24 month) horizons. However, after controlling for size and trading volume, evidence of short run momentum anomalies for small firms and short run contrarian anomalies for low traded firms have been found.

This study investigates the factors that cause a delay in reporting firms’ audited annual financial statements. In general there are two sets of factors related to the characteristics of the reporting entity and factors related to audit are separated. In this respect, 97 companies listed in Tehran Stock Exchange using screening sampling are selected, then the research hypotheses, using multivariate regression methods are tested. Independent variables include financial leverage, good and bad news (profitability and cash dividends), size of company and corporate governance. The dependent variable of this study is, "the delay in reporting". To measure these variables, three courses are considered, the signature of auditor, the implicit and the entire reporting period. The results of the study show that between firm size and the signature of auditor and also between firm size and the implicit effect is a significant and negative relationships. Finally, companies with high financial leverage ratio, firms with good news as well as those having greater number of major shareholders, further delay in reporting audited annual financial statements.

Investors, creditors and financial analysts are interested in having information on income smoothing in companies they are willing to invest in. Various local and international studies reveal that the investors in investment decisions prefer smooth and less fluctuating income. Managers attempt to report profit and its growth rate as smooth. Most researches show that financial statements and profit declaration has information content. This study is conducted for two aims, one investigating the impact of unexpected earnings on reaction of shareholders and another is impact of unexpected earnings on investors return. In present study earnings is taken as one of the most important variable in investors’ decision-making process, and seeks to see whether earnings have information content or not? If the earnings are the unexpected earnings arising from earnings smoothing incentives, by its declaration, does it lead to market response and achieving abnormal returns? The population of this paper consists of all companies listed on TSE. By filtering (systematic elimination) approach, 99 companies are selected during 2008 to 2012 as the research sample. For data analysis, regression panel data analysis is applied. The results of the study show that earnings can have information content and declaration of unexpected earnings that is done by earnings smoothing incentives by management causes that investors can interpret and understand the meaning of earnings information well. Thus, investors’ reliability to acquire declared earnings is increased and the increase of reliability of the investors leads to the increase of the impact of unexpected earnings on abnormal returns and stock price.

This research investigates the effect of time on idiosyncratic return and idiosyncratic return volatility in the companies listed in Tehran Stock Exchange during a period of twelve years (from 2001 to 2012). This study uses three-factor model of Fama and French (1993) to measure the idiosyncratic return. Data analysis for this study is conducted using multiple linear regressions with use of panel data. The results show that the idiosyncratic return and idiosyncratic return volatility has decreased over time. This result means that investment risk in Tehran's stock market has gradually decreased over the last twelve years.

One of the most important issues in financial management is cash holding. How to use firm’s assets and especially firm’s cash is a major discussion between stockholders and managers. To maximize firm’s value, managers try to choose a suitable combination of firm’s assets and debts. In this paper, it is tried to test the value relevance of cash holdings. This study is an experimental-basic research and on the nature is a correlational. The multiple regression model with pooling data is used. To test the research hypotheses a sample of 118 companies listed in Tehran stock exchange, using screening sampling is selected, over the period 2006-2010. The results of study show that cash holdings don’t have negative relation with firm’s value, but extra cash holdings with current level of firm’s cash have negative relation with firm’s value. Also, stockholders pay attention to current ratio and immediate ratio in leveraged companies very much.

This study investigates the relationship between research and development costs and stock return. To test the research hypotheses Fama and Macbeth (1973) and Fama and French (1993) models are used. The sample of 27 manufacturing companies listed in Tehran Stock Exchange for a time period of 2003 to 2011 is selected. Statistical multiple regression model is used for data analysis. Results indicate that between research and development costs and stock return a significant relationship does not exist. Moreover between research and development costs and risk premium in risk covering portfolio a significant relationship is not found.

This Study examines the impact of accounting conservatism on mitigate creditor-shareholder conflict over dividend policy in 266 listed firms of Tehran Stock Exchange (TSE) over a 10-year period from 2001 to 2011. Using correlation method and multiple linear regression technique, the results of this study show that accounting conservatism cannot mitigate as an effective contraction mechanism in creditor-shareholder interest conflict over dividend policy. Research evidence show that there is a negative significant relation between interest paid to creditors and dividend paid to shareholders. Also, that there is a significant relation between dividend payout in last year, firm size and operating cash flow with dividends paid.