The Financial Accounting and Auditing Researches
Year:2017 | Volume:9 | Issue:34|Papers Count:8

Much of the earnings management literature predicts a positive relation between debt and the incentive to manage earnings using accruals because of a firm’s closeness to restrictive covenants. Grossman and Hart (1982) argue that higher levels of debt increases the threat of bankruptcy and administrators for the possibility of losing control of the company’s puts pressure. Most debt managements make decisions that reduce the value of the company avoidance. Therefore, the data relating to 75 firms listed in Tehran Exchange Market were studied. The multivariate paneled regression model was used to test the hypotheses. The findings of the first research hypothesis state there is a positive relation between short-term debt and accruals-based earnings management and with the possibility of opportunistic behavior by managers with the theory of the structure of short-term debt maturities. The findings of the second research hypothesis state there is a strong relation between short-term debts and accruals-based earnings management in companies with rather credit than firms with low credits.

In Iran, in light with audit firm size view, studies have investigated the audit quality differences between Audit Organization of Iran as a big audit firm and private audit firms as non-big audit firms. However, the empirical evidence provided by the Iranian researchers in this area is mixed and inconsistent. Such findings are likely to alarm that; (i) audit firm size view has weak explanation and interpretative power in the Iranian research setting; (ii) there are considerable weaknesses in applied research method; and/or (iii) both issues exist simultaneously. Hence, the present study theoretically and methodologically criticizes a number of Iranian studies based on the audit firm size view between 2006 and 2015. Theoretical criticism reveals that Audit Organization of Iran does not possess most of big audit firms’ characteristics in light of audit firm size view. In addition, methodological criticism indicates that the issue of endogenous auditor choice has not been taken into account by the Iranian researchers. When the independent variable in a regression model is endogenous, using usual statistical estimators such as ordinary least squares may result in misleading findings. The present study, to deal with theoretical issues in conducting research about auditor type (state vs. private) in Iran, suggests two conflicting views including "fee pressure" and "auditor and auditee controlled by the state". In addition, to overcome endogenous auditor choice, this study suggests using the two stage procedure of Heckman (1979) and propensity score-matching models presented by Rosenbaum and Rubin (1983).

The aim of this study is to examine the effect of interlocked board of directors, on earning quality and voluntary disclosure.Statistical population of this study comprises of all listed companies in Tehran Stock Exchange. Sampling method of the study is systematic deletion method. Studied sample of the present study is comprised of 90 companies. The Type of the data for testing the hypotheses is pooling data.Results and findings of this study show that interlocked board of directors has a positive effect on earning quality. So that presence of interlocked board of directors can improve the earning quality of the sample companies. The findings also indicate that interlocked board of directors has positive effect on voluntary disclosure of the information, whether, interlocked board of directors can encourage the managers to disclosure information voluntary.

Dividend policy has been at the center of attention of accounting and financial researchers and theoreticians for long. Using financial data from 95 companies listed on Tehran Stock Exchange, we examined the relationships dividends, growth opportunities, and agency costs. We utilized multivariate OLS regression to test our hypotheses. Also, in this study we have used the Eviews and SPSS software. Our results, in summary, indicate a negative and significant relationship between growth opportunities and excess dividends over legal minimum, on the one hand, and a positive and significant relation between agency cost and excess dividends over legal minimum, on the other hand. The results of this study show that the amount of general and administrative expenses is not a reliable measure for companies' agency costs.

The managers with too much over-trust relationship overestimate the corporations future investments returns and output. So it is expected that these managers delay the recognition of loss and tend to apply conservative accounting procedures.the present research aims to explore the relationship between the over-reliance relationship management with the conditioned conservatism in terms of the earnings response coefficient in the corporations listed in the tehran stock exchange for a period of 2008 -2013. The research involves a sample of 103 corporations which were selected through systematic random sampling. the statistical methods of the study involve multivariate logistic regression using the SPSS software. The findings of the research indicates that there is not a significant relationship between the over-trust relationship management and the conditioned conservatism in the corporations with a High earnings response coefficient compared with those with Low earnings response coefficient.

This paper is concerned with investigating the relationship between the auditor industry specialization and the corporate risk-taking as well as the effect of institutional investors on them. By having sampled a number of 96 firms listed in Tehran Stock Exchange, this research designs the hypotheses and then tests them using multivariate regression model based on panel data technique. The findings indicate that employing industry specialist auditors can enhance the corporate risk-taking. Moreover, the results reveal that institutional investors’ ownership weakens the association between the auditor industry specialization and the corporate risk-taking. The findings of this study not only fill the research gaps, but also open new horizons to investors, Stock Exchange and other stakeholders in decision-making processes.

From past to present participants in capital markets have had a strong desire to predict the company's income to determine firm's stock price based on it. Many factors affect the company's income forecast. One group of these factors is macroeconomic information. Many studies have found a significant relationship between macroeconomic data and price Indexes and stock returns, however, few studies have been made about the effect of macroeconomic variables on the accounting income. In this study, 24 macroeconomic variables were selected and using principal component analysis is summarized in 4 economic criteria. Economic criteria are: the measure of labor market, the measure of output and the real economy, the measure of prices and the measure of financial conditions and exchange rates. The present study has investigated the impact of this macroeconomic factors on one year, two years and three years later income. For data analysis and hypothesis testing, multiple regression models and the combined data is used. To test the hypothesis, the sample consists of 269 companies listed in Tehran Stock Exchange. The results show that macroeconomic variables are associated with future incomes, but directions of this relations varies in different time periods. Also, based on the results of redundant variables test, the variables in the model help the model to predict income more accurately.

In today's competitive world for the survival and expansion of manufacturing activities need to invest in profitable projects. Also expected companies to increase the quality of financial reporting against the unexpected changes in collateral assets and preserving their financing capacity to invest in the profitable projects. The main purpose of the present study is determining the relationship between collateral assets and investment by considering the role of financial reporting quality. And includes 106 accepted company in Tehran stock exchange. Multilateral regression was used to testing the research hypotheses. The results show that, there is a significant relationship between the interactive effect of asset value for bail and the quality of financial reporting with investments. This issue boosts this analysis that companies increase their credit by enhancing their financial reporting quality so they can improve their amount of investment.