The Financial Accounting and Auditing Researches
Year:2013 | Volume:5 | Issue:19|Papers Count:8

Momentum strategies say that with investigation of past function of stocks, We can forecasting the future function of them and this strategies believe that the current trend of market will be continue in the future and classifying in the class of technical anomaly. So the acceptance of profitability of these strategies can be challenge the modern finance theory and efficient market hypothesis (EMH).In this research with use of the sample from 100 companies which are in Tehran’s stock exchange from the years of 85 until 90 and with use simulated portfolios in the base of past abnormal return has been attempted to appraisal the beneficiary of these strategies and investigation the time period of these strategies.The result shows that with investigation of past trend of stocks in the price momentum model we can obtain the abnormal return. Also the serial correlation among the market return of investigated stocks is lessen over time and will fade away in a time horizon of one year.

Quality of Auditors work and the they comment can improve the quality of financial reporting and earnings management is reduced, in this study the relationship between the type of audit institutions (big and small auditing firms) and type of audit report (acceptable and non acceptable audit) with earnings management index were investigated. For testing each one of hypotheses, two models have been defined based on dependent variable. Hypothesis test is done by multiple Regression analysis and Pearson correlation test is done by using information from 53 companies listed in Tehran Stock Exchange In six different industry for the period 1382 to 1388 and through "combined data". Findings indicate that, there is no significant relationship in type of auditor in no industry with earnings management index and there is significant and negative relationship in type of auditor report in the automobile industry, basic metals and materials and pharmaceutical products with earnings management index.

Voluntary disclosure and corporate governance, as considerable issues in a world wide scale, requires more attention in the scientific and research communities of our country. So this study tries to review and examine the relationship between them. In the model discussed, the corporate governance mechanisms are including Ownership structure and board composition. Ownership structure specified by managerial ownership, major shareholder and governmental ownership. Composition of board measured by ratio of outside directors. Voluntary disclosure index is summarized based on previous researches. According to research results, decreasing in the level of managerial ownership and increasing in the percentage of major shareholders ownership is associated with an increasing in the level of voluntary disclosure. While there is no significant relationship between governmental ownership with voluntary disclosure.

Financing approach is one of the main decision making scopes of the companies’ financial management towards increasing the investors’ wealth. In order to evaluating the level of reaching this objective, functional indexes are evaluated.So, the present study investigating the effect of financing, its variety and its volume on Tobins’Q functional assessment criteria, market value added and companies' adjusted economical value added of companies. On the basis of studied the literature, four hypotheses designed and 62 companies among the companies listed in Tehran Stock Exchange was chosen as a statistical sample for five year term from 2005 to 2009. In order to Testing the hypotheses, regression analysis and Pearson Correlation were used; findings of these tests show that volume of financing has a significant relationship with Tobins’Q ratio and market value added. Also financing through share issuance has a significant relationship with the ratio of tobins’Q, market value added and adjusted economical value added. on the other hand, financing through debt and financing out of the balance sheet have respectively a significant relationship with the market value added and Tobins’Q ratio.

The present study attempts at investigating the fact that how environmental uncertainties affect on firms' performance and profitability and what is the relationship between smoothed incomes and current stock return in the firms operating in uncertain environments. It is generally assumed that environmental uncertainties negatively affect firms’ performance and profitability. Therefore, to prevent their negative effects, managers attempt at smoothing reported incomes. Income smoothing creates harmony and consistency in income growth rate and increases the efficiency of future incomes’ prediction. As a result, current stock return is affected. In the research presented here, data is investigated annually for the time interval since 1385 (2006) till 1389 (2010). To test hypotheses, three multivariate regression models are employed.To calculate discretionary accruals, model of Kothari et al is used. Furthermore, coefficient of variation of sales was considered as a criterion for environmental uncertainty of firms belonged to our studied sample. Findings indicate that environmental uncertainty creates many fluctuations in firms’ performance and profitability and to avoid its negative consequences, managers perform reported income smoothing using discretionary accruals and smoothed incomes have a significant relationship with current stock returns.

The main objective of this study is to examine the relationship between cash conversion cycle (CCC) as a liquidity measure with the profitability and debt ratios in Iranian companies. Researches indicate the decreasing of CCC results in a higher profitability in firms. The CCC is a powerful performance measure to assess how well a company is managing its working capital. Therefore, the population of this study is firms listed in Tehran stock Exchange during the period of 2006 to 2009. By random sampling, we selected 178 firms as a statistical sample. The hypotheses are examined using panel least squares, analyzing with cross section random and fixed. The results indicate that there is a significant relationship between the CCC and net profit margin; however, there is no relationship with traditional liquidity and leverage ratios. The findings imply that the CCC is a stronger measure for profitability measurement than traditionally liquidity ratios but each liquidity ratios could not measure the ability to repay liabilities. Although, reducing the trend to ray the seller, could damage the firm's credit reputation.

In this study, we provided survey the effect of financing policies on the agency cost in the stock exchange market of Tehran. Agency relation is an agreement, according that owner elect the person and give option to him for deicide firm's operating activity. After agency agreement, agency cost raised because of conflict interests between both of the agreement parties. Agency cost has inversing effect on the firm. Therefore the firm looks for controlling and reduce the agency cost. In this research, we defined "Q Tobin" Index to measure the agency cost. This study is applied research and its purpose is surveying the relation between financial leverage, cash dividend and debt ratio of firm's on agency cost. The society of this study is consisted of all active firms in Tehran stock exchange in duration, (1384-1388). After systematic sampling, we collecting 186 firms.In order to test the correlation between the variables, Pearson Correlation Coefficient is used. Also the result of Durbin Watson test is 1.822 and it means that there is not first order serial and on totality can reliance to results. The results show that there is no relation between financial leverage and agency cost. Also the findings show positive relation between cash dividend and agency cost. Finally the result show negative relation between debt ratio and agency cost.

This research investigates the value-relevance of accounting information to domestic investors in Tehran Security Exchange (TSE) during 1999 to 2009. We also investigate the impacts of two factors including positive vs. negative earnings and firm size. We considered earnings per share and annual change of earnings per share as the income statement indexes, and book value of equity per share as the balance sheet index according to return and price models. The regression analysis is used for testing the hypothesis. The result showed that accounting information is value-relevance to investors in Tehran Security Exchange according to both models. However, the income statement information is more value-relevance than the balance sheet information. Furthermore, the positive vs. negative earnings and firm size have significant impacts on value-relevance of accounting information.