FINANCIAL ACCOUNTING
Year:2011 | Volume:3 | Issue:9|Papers Count:10

The relation between capital structure decisions and corporate governance and ownership structure for the listed companies in Tehran stock exchange is studied in this paper. The aim is to determine the relation between 3 financial ratios as capital structure criteria and companies' structure & corporate governance mechanisms. The main hypothesis, the relation between company capital structure decisions and corporate governance and ownership structure is tested. For data analysis, 3 regression models are compiled and applied. The sample is the listed companies in Tehran stock exchange within the 2002-2009 intervals.Data analysis results suggest the confirmation of each hypothesis in question, and at the end, the confirmation of the main hypothesis studied using combinatorial data. In another word, there exists a significant relation between company capital decisions and corporate governance & ownership structure.

Making decision about capital structure is one of the hardest and challengeable problems for the companies, and also it is the greatest importance decision about their performance. This paper investigates impact of capital structure choice on performance of listed companies in Tehran stock exchange through analyzing data for 76 firms for period 1383 to 1387. The results indicate that, there is a significant negative relation between short-term debt to total assets ratio and total debt to total assets ratio with return on assets. But, there is no significant relation among capital structure (short-term debt to total assets ratio, long- term debt to total assets ratio and total debt to total assets ratio) and firm’s performance (return on equity and gross profit margin). In other words, the results reveal that capital structure choice decision, in general terms, has a weak-to-no impact on firm’s performance.

Cash reserves are important part of firms' assets. In previous studies many variables including of financial distress, growth opportunities, firm size, debt contract terms, banking relationships, investment opportunity cost, financial leverage, assets’ liquidity the capacity to generate cash flows, percentage of dividend payout, the ratio of capital expenditures in the fixed assets to net fixed assets at the beginning of period (INV), firm age, business group membership and accruals quality are introduced as determinants of cash holdings. The main goal of this paper is to review the relationship between above factors as independent variables and cash holdings as dependent variable in Tehran Stock Exchange. Therefore, 129 firms that their required data for a ten year period (1379-1387) was available are studied. The multivariate pooled regression model is used to test the hypotheses. The findings indicate that independent variables that are used in research model explain 86 percent of variation in cash holdings in Tehran Stock Exchange.

The subject of financial reporting transparency and its importance which has been more highlighted in recent years following unfortunate circumstances and created crises in world stock exchange and specially black September in 1997. The event of September eleventh in 2001, disclosure of World Com, Enron, Xerox, Parmalat on the global level, and fall of Tehran Stock Exchange Index in 1383 caused the subject of financial statement transparency to become a necessary phenomenon to be studied. This study investigates the relationship between tax reporting and financial reporting transparency. The subjects of the study consist of companies listed in Tehran Stock Exchange, Tehran Tax Affairs Organization, university professors, managers (companies), and certified public accountants (auditors) of Tehran in 1389. The sampling method is based on ratio scale, and the sample volume is 150 subjects. The subjects were divided into five. To analyze the data and to indicate whether or not there is a relationship between tax reporting and financial reporting transparency in each participant group the inferential statistics of correlation coefficient is used and to show the difference between each pair of correlation related to these groups the inferential statistics of Z-Fischer is applied. The results indicate a positive relationship between tax reporting and financial reporting transparency in that financial reporting transparency will be secured to a great extent if tax reporting is documented in addition to financial reporting.

This paper examines the relationship between earnings and its components with Stock Returns with emphasize on earning quality in Tehran Stock Exchange (TSE). In order to investigate this subject, a sample of 203 listed companies in the Tehran Stock Exchange is selected over the 7 year period between 1380 and 1385. The results show that both earnings cash component and accrual component have information content, but information content of cash flows is more than accruals. Also this paper indicates that earnings–returns relationship is more than cash flows–returns relationship, but there is no significant difference between earnings and cash flows information content when earning has high quality. The results also show that earnings and cash flows information content in firms with high quality prediction for earnings is more than other firms. Also the findings of this paper show that firms with high quality earn positive returns but firms with low quality have a negative returns, as firms with highest earning quality earn 17% return more than firms with lowest earning quality.

This Study attempts to provide evidence for the effects of the firm characteristics on corporate governance indices. Sixty companies are selected for a period of 2004-2008 as the sample of this study. Corporate governance indices in this research included: 1-information transparency index, 2-ownership concentration index. In order to evaluate transparency and ownership concentration indices variables of abnormal accruals and concentration is used respectively. Also variables of investment opportunities, growth opportunities, financial risk, firm size and institutional shareholder ratio are used to explain firm characteristics. Implementing a multivariate linear regression models and pooled panel data, an appropriate model for each corporate governance index is provided. Findings corroborate that the effects of investment opportunities and firm size on abnormal Accruals (current) as information transparency index are significant and also the effects of institutional shareholder ratio, and growth opportunities and lag ownership concentration on ownership concentration (current) as firm concentration index are significant.

The accounting earnings have always been one of the most controversial issues in the capital market. Critics believe that accountants consider accounting content instead of economic content. So, financial analyzer and investors must pay attention to the quality in addition to the quantity of earnings. The current research surveys the quality of accounting earnings, considering quality measures that have known in the worldwide financial literature, and then study whether investors consider the quality of earnings or not. The measures of earnings quality that is used in this study are the operating cash flow to the operating earnings ratio and accrual items. The dependent variable is abnormal stock returns in two time periods (a short and a long time periods). The simple regression model is used (to) test the research hypothesis. The regression analysis indicates that there is no relation between the operating cash flow to the operating earnings ratio with abnormal return of stock in period of 1383 to 1387. Also there aren't any relations between accrual items and abnormal stock returns in the short period. The regression analysis also indicates there is an adverse relation between accrual items and abnormal return of stock in the long period.

Iranian Accounting Guideline Setting Committee (IAGSC) asserts financial reporting would be resulted to financial statements that contain useful information to estimate enterprise future cash flow and related risk of cash flow generating. According to Capital Asset Pricing Model, the systematic risk is the most important factor of risk. So, the main goal of this study is to investigate the usefulness of some accounting variables in assessing the systematic risk in listed companies in Tehran stock exchange. Data related to eight independent variables is collected from TSE data base and the systematic risk is measured as the dependent variable. Pearson correlation and multiple regressions are used to test the research hypothesis. The results indicate that there is a significant relation between six predicted variables with systematic risk in period of 1999-2008, so, this information can be used for anticipating systematic risk. Additionally, the result of the optimum model in the last step of the backward elimination method reveals that among the six predicted variables, four variables have incremental information content relative to other variables. EMBED Equation. 3 EMBED Equation. 3