The Financial Accounting and Auditing Researches
Year:2018 | Volume:10 | Issue:38 |Papers Count:10

Transparency is an incumbent tool towards social growth and development. Providing transparent and comparable information is considered to play a substantial role in tax reporting. Accordingly, the objective of this study is to recognize the relationship between transparency in financial reporting and effective tax rate of accepted companies in Tehran Stock Exchange. Therefore, to describe transparency in financial reporting, profit smoothing factors, optional accruals, disclosure quality as well as auditing quality have been utilized. The study’s statistical sample encompasses81 companies. Multivariable linear regression based on combinational data (data panel technique) has been used to test the hypotheses. Panel results indicate that profit smoothing and optional accruals as criteria to manipulate profit is in positive significance with effective tax rate and as a direct criterion for transparency in financial reporting, disclosure quality on the other hand is in negative significance with effective tax rate. Furthermore, results of the study concluded that auditing quality regarded as a direct criterion for transparency in financial reporting is in negative significance with effective tax rate.

This study investigate the view of auditors about auditing and marketing activity in 193 audit staffs who work in audit organization and private audit firms. The main objective of this paper is to recognize the level of auditor' s intention for marketing activity. Research method is descriptive and its instrument is questionnaire. Hypothesis testing has conducted by correlation method and multivariate regression. Research results show that auditor's intention for marketing activity is belong to importance of marketing activity, importance of auditing activity, acceptance of auditing activity and auditor rank.

In this research, by using the 18 accepted investment companies in the Tehran Stock Exchange, relationship of behavioral herding with the performance and characteristics in investment companies of Tehran stock exchange (TSE) by using Verardo and Jung's model has been reviewed and investigated. In order to analyze data and test hypotheses has been used Ordinary least squares (OLS) and generalized least squares (GLS) method and software Eviews. Also for check and solve autocorrelation has been used Autoregressive moving average model (ARMA). Research findings show that the behavioral herding in investment companies has negative effect on these companies performance (risk-adjusted return). In addition, the findings indicate a significant relationship between behavioral herding and characteristics of these companies.

The purpose of this research is reassessing the effect of growth options and adjusted growth options on optimal leverage within the framework of the static trade-off theory and test speed of adjustment based on dynamic trade-off theory. To performance this study, a sample of firms listed in Tehran Stock Exchange consisting of 155 companies selected have been examined. The used two ways, panel data regression and Fama-Macbeth (1973) for investigate the impact growth option. The used generalized method of moments to check capital structure speed of adjustment. According to the result, the growth option explanatory power dependence leverage measure. As long as, we used market leverage, the maximum explanatory power belong to growth option (M/B). However, the highest explanatory power is belong to adjusted growth option when, we use book leverage. To increased speed of adjustment when, we used market leverage and adjusted growth option. The speed of adjustment is reduced by book leverage at the same condition.

The aim of this study was to investigate the role of auditor specialization in industry to prevent of opportunistic shifting the classification of income statement items in the listed companies in Tehran Stock Exchange. The sample consisted of 85 listed companies on Tehran Stock Exchange. In this study for detecting earnings management using classification shifting of Mcvay (2006) model was used. In addition, in order to investigate the actions of earnings management using classification shifting, audit quality criteria including auditor opinion, the auditor tenure and expertise in the industry were added to the model. The results indicate the existence of earnings management using classification shifting. The research evidence also shows that industry expert’s auditor and effect of its interaction with the auditor long-term tenure (over four years) is able to detect earnings management using classification shifting of listed companies in Tehran Stock Exchange, the auditor's opinion has no effect on the detection and control of the tool.

The relationship between dividend and corporate governance index (in this study concentrated ownership) is debatable within the framework of agency theory is debatable and implementation of corporate governance is a mechanism to reduce agency cost. Dividend reduces agency cost through the distribution of free cash flow. In this study, a new aspect of the relationship of ownership (The endogenous relationship) and dividend policy has been investigated. Since the ownership structures are exogenous and are not randomly chosen by investors, Common regression causes bias in the coefficients. Matching techniques (PSM), are to control the endogeneity and to assess effects that ownership variables have on the behavior of dividend. For this purpose, data of 2080 firm-year were used. In this study, the effect of ownership variable on dividend policy was estimated as exogenous once and endogenous once again. For the statistical analysis, the results were analyzed via Software R by using ordinary panel data and data mathched by PSM. In both methods, the simple logistic regression and logistic panel model was fitted and Akaike's information criterion (AIC) were used for comparing the methods. It was observed that the p- value of concentrated institutional investors (INS) and concentrated corporate investors (CORP) is less than 0.05, so these two variables have a significant effect on the variable dividend policy. For the control variables, observations shows that only net income and company size doesn’t have a significant effect on dividend policy but other control variables have a significant effect on the dependent variable. Finally, using PSM and matching of data can have a significant role in improving the fitted regression and its results are more significant than normal data.

Establishing effective internal controls has always been one of the corporate governance elements. It has been a long time since internal controls are the major concern for managers, investors and other interested parties, because they are aware of the vitality of such controls in achieving goals of an economic unit. The aim of this research is to examine The effect of internal control material weaknesses on investment inefficiency. Accordingly, a number of 122 stock exchange companies in Tehran have been selected in a 5 years period from 2011 to 2015, after utilizing a systematic removal method. We have used panel data regression technique in order to analyze data and hypothesis test. The findings of this research show that there is a meaningful positive relation between material weaknesses of internal controls and investment inefficiency. In fact, the results explain that existence of material weaknesses in internal controls leads to investment inefficiency in companies, and therefore, the necessity of implementing effective internal controls in the organizations by the managers is more reasonable than before.

Firms with high-quality internal control implement effective monitoring process, thereby containing managers’ ability in hoarding bad news, which in turn prevents them from sudden release of bad news in market and thus reduces stock price crash risk. Accordingly, the present study is concerned with exploring the association between the efficacy of internal control and stock price crash risk. To do so, a sample of 96 firms listed on the Tehran Stock Exchange were selected. The research hypothesis was tested using multivariate regression analysis model based on panel data. The results reveal that the efficacy of internal control can minimize stock price crash risk. The findings of this study not only fill the gap in the field, but also help policy makers, capital market regulators, and standard setters make informed decisions.

Internal quality control is considered as one of the regulatory and control mechanism of business units. On the other hand, the audit committee is one of the corporate governance mechanism since 2012, that has been required by the Stock Exchange companies to form the committee. In addition, the separation of ownership from management has also added to CEO power to increase the personal interests. As a result, this research seeks to study the relationship between the characteristics of the audit committee and the quality of internal control and the effect of the moderating power of the CEO on their relationship. As a result, the data of 90 companies listed in Tehran Stock Exchange (TSE), Iran were selected and analyzed with a logit analysis. The results showed that among the characteristics of the audit committee, the financial expertise of the members and the size of the audit committee are related to the quality of internal control and the independence of the dependent variable is not significant did not have a significant relationship. The results also showed that CEO power has only a moderating effect on the relationship between the size of the audit committee and the quality of internal control.

Product market competition is one of the important factor which influence the flow and volume of information supplied by business enterprise.also The corporate governance structure can have a significant impact on the quality of information is provided. The aim of this study is An investigation of The role of corporate governance on the relationship between product market competition and quality of the forecasted earnings by management in the listed Companies of the Tehran stock exchange. For this purpose data about 70 companies listed on the Tehran stock exchange is gathered. And the moderating effect of corporate governance on the relationship between product market competition and Quality of the Forecast Management earning, is studied. The Herfindahl-Hirschman is used for product market competition and to measuring of the corporate governance we use checklist of corporate governance with 8 class which include, business ethics, training, the compliance with legal requirements, auditing, ownership, board structure, asset management and liquidity. The findings show that competition in the product market have a negative effect on quality and Quality of the Forecast Management Earning and this effects is reduced in the firms with strong corporate governance. In the other words in companies with a higher degree of corporate governance, the effects of product market competition on the forecasted earning is positive.