The Financial Accounting and Auditing Researches
Year:2020 | Volume:11 | Issue:44 |Papers Count:10

Recognizing individual investor's behavioral pattern is a vital element in capital markets. This research investigated the effect of investor sentiments on trade dynamics in Tehran Stock Exchange. In this study, 117 companies from listed companies on Tehran Stock Exchange are selected by systematic elimination approach. Regression analysis in Eviews software is used to test the hypotheses; the results showed that investor sentiments have a direct effect on stock returns. Gross Domestic Product (GDP), inflationa and Governmental Expenses (GE) are considerd as intervening variables whist the results presented that GDP has a direct effect while inflation has a reverse effect on relationship between investor sentiments and stock returns; whereas, GE has no effect on the relationship between investor sentiments and stock returns.

The purpose of this research is studying the effect of Audit firm’ s characteristics on earnings management. Accrual and real earnings management are measured through the models proposed by Dichow & Dichev (2002) and Roychowdhury (2006). Audit firm’ s characteristics consist of age, competition power, independence, number of partners, ranking by Iranian Association of Certified Public Accountants, ranking by Tehran Securities & Exchange, rotation, size, specialization and tenure. Samples include 99 firms listed in Tehran Securities & Exchange. Hypotheses have analyzed using multivariate regression models. Findings indicated that audit firm’ s independence, ranking by Iranian Association of Certified Public Accountants, rotation and size havesignificant effect on accruals earnings management; Audit firm’ s age, competition power and size havesignificant effect on real earnings management through abnormal operational cash flow. Audit firm’ s age, independence, ranking by Iranian Association of Certified Public Accountants, size, specialization and tenure havesignificant effect on real earnings management through abnormal production cost; In addition, audit firm’ s age, competition power, ranking by Tehran Securities & Exchange, size, specialization and tenure havesignificant effect on real earnings management through abnormal discretionary expenditures. However, accruals and real activities earnings management do not affected by the number of partner in audit firms.

Based on life cycle theory, firms have various characteristics in various stages of their life cycle, so the financial reporting behavior is also expected to vary with stages of organizational life-cycle. The main purpose of this research is to study the effect of firms’ Life cycle on Accounting Conservatism, in Tehran stock exchange. First, sample firms were classified into three life-cycle stages (Growth, Mature and Decline). Then by testing individual hypotheses of research and using multivariate regression in panel method for 76 companies, it was determined that, conservatism level using Khan and Watts (2009)’ s measure differ significantly through-out the life-cycle stages of firms. In other words companies in Growth stage of the life cycle, have a significant negative impact on company's conservatism, and there is a significant positive relationship between mature and decline stage with firms’ conservatism.

The main purpose this research is the effect of asset management on the relevance of accounting information Considering variables of financial statements in companies listed on the Stock Exchange. The main hypothesis of this study was evaluated by four models. In this study the value relevance of accounting information were measured Using Ohlson's Model (1995). Variables that likely affect on value relevance of accounting information are Asset management, firm size and financial leverage. Sample is 103 companies listed on the Tehran Stock Exchange and data were analyzed by using panel data. The results indicate that asset management increases Value relevance of accounting information in companies. Asset management, considering the company's size and financial leverage, improves the value relevance of accounting information in companies

Theorical effects of accounting disclosure on stock return, Jin and Myers (2006) explain synchronicity and stock crash risk. Specifically, if firm has a better disclosure standard, investors will have more motivation to aggregate firm’ s specific information and apply this information in in stock price. In addition, if firms have a weak disclosure policy, it shows that management hide some information and in case that cost of hiding information is high, firm disclosure this information suddenly which leads to stock price crash. Thus, the aim of this study was to the effects of information disclosure on stock return synchronicity and stock crash risk with Emphasis the quality of corporate governance in firms listed in Tehran stock exchange. The results of regression analysis for 83 firms indicates that accounting disclosure has a positive significant impact on stock return synchronicity. In addition, the results indicate that accounting disclosure has not a significant effect on stock crash risk. Further results show that corporate governance has not a significant impact on the relationship between accounting disclosure and stock price crash. Finally, the results of the research indicate that the quality of corporate governance has not a significant impact on the relationship between the accounting disclosure and stock crash risk. Totally, the results certify specialty of Tehran Stock Exchange information that indicate low information content because information do not available for all stock market participant.

Accounting researches have been studied the dependence of valuation coefficients on the cost of capital, conservative accounting policies, inflation, and financial leverage without taking into account the impact of accounting information in previous years. In this study, considering the concept of clean surplus and dirty surplus items, the dependence of the valuation coefficients is assumed as a continuous stochastic process over time, which is called standard Brownian dynamics. For this purpose, by using two criteria for measuring accounting conservatism-the ratio of market to book value and C-score-172 companies as sample during 2009-2016 were classified in ten deciles. Based on the results, changes in the coefficients of the valuation models show the effect of lagged accounting information on the current valuation. The market to book value ratio, also, improves the coefficients of the models. The findings show that the ratio is more efficient than C-score, as C-Score acted poorly to measure the linear information dynamics in valuation function.

Considering the importance of non-audit services made direct observation of audit quality, finding an effective way to control audit quality is essential. The characteristics of the entity, including through its impact on agency costs can describe risk factors, fees have an impact on the volume and complexity of the entity's operations. The purpose of this study was to investigate the effect of different aspects of the company's risk based audit fees. The population of this research Companies listed on Tehran Stock Exchange has shaped and includes 85 companies operating in various industries. In order to analyze data from multiple regression models were used in this study. The findings were made using the linear regression model shows that a relatively strong relationship between financial risk and operational risk and audit fees are statistically significant. There is also evidence of a significant relationship between business risk and audit fees was not found.

Corporate social responsibility and related disclosures are critical to the continuity of corporate activities. The purpose of this paper is to study the relation between corporate governance, social responsibility and the company’ s value among the firms listed in Tehran Stock Exchange. The data required for this research was collected from the financial statement of 75 companies. To test the hypotheses, multiple regression has been used with panel data. To measure social responsibility criterion, Mishra and colleagues (2011) model has been used. For the corporate governance, concentration of ownership and block ownership of stock criteria have been used. The results of the study show that there is a meaningful relationship between concentration of ownership and social responsibility while no meaningful relationship between block ownership of stock and social responsibility was noticed. Also, no meaningful relationship between social responsibility and corporate exchange value was witnessed

The identification of the factors affecting on earnings forecast accuracy has always been taken into consideration. This study investigates the impact of information asymmetry, lack of liquidity of the stocks upon earnings forecast accuracy as well as the moderating role of ownership structure (concentration) upon such accuracy. The study population was the member companies of Tehran Stock Exchange, the 86 companies were based on analysis of hypothesis. hypotheses test using to ordinary least squares method and the software Eviews7. Hypotheses test results indicate that “ information asymmetry has a significant positive correlation with earnings forecast accuracy” . This means that companies with lower information asymmetry index have less diversion in terms of their accuracy of earnings forecast. However, no evidence was found with regard to the correlation between lack of liquidity of the stocks as well as moderating role of ownership structure (concentration) and earnings forecast accuracy.

Conventional financial reporting does not include all that can be used to properly assess the ethical, religious, and social responsibilities of a business entity. This study examines the need to improve the level of financial reporting from the perspective of Professional and Academic Experts. The research method in this study is combination (qualitative and quantitative). In the qualitative section by use of the Content Analysis Method, based on the results of previous researches, the necessity of improving the level of financial reporting in line with Objectives of the Islamic Accounting and Shari'a Principles has been explained. In the quantitative section, by using the questionnaire, the viewpoints of 73 Financial Experts were obtained and analyzed by SPSS software. This research was conducted in 2018. The Statistical Population has been Faculty Members of the Universities, Official Accountants and Senior Experts of Tehran Stock Exchange. The Results showed that there was consensus among Professional and Academic Experts on the "Insufficient Disclosure Level in Conventional Reporting and the Necessity to Promote it in Line with the Islamic Accounting Goals". Based on these results, Some content and Form Changes have been suggested in the Financial Statements.