JOURNAL OF ASSET MANAGEMENT AND FINANCING
Year:2015 | Volume:3 | Issue:3 (10) |Papers Count:7

Investors to invest in stocks when the optimal selection requires the evaluation of information, such as liquidity, ability to pay the debts of the business unit and profitability are. Many studies examined significance of the financial statement items in explaining the company's future performance, up now in this paper we will investigates whether financial statements, particularly the cash flow statement, provide users with usefulness information on investment transactions. To investigate this issue, tested the 97 companies listed in Tehran stock exchange during the period 1380 to 1390. In this study, the adjusted R2 is used to test the hypotheses. Highest adjusted R2 indicates that the model has the highest explanatory power of future performance company. By taking all the information and results obtained from the CFO and stock prices, evidence shows that investment sector cash flow statement provides information on the Future performance. In addition, results show that non-cash investing provide addition to information CFI.

Managerial financing decisions seem to change the predictions of the financial model about how often and under what circumstances firms use financial resources. The financial accounting literature uses market timing hypothesis, pecking order theories to explain management’s financing decision. We examine how market timing affects management’s net financing decision using a sample of firms listed in Tehran Stock exchange over the period of 2002 to 2011. Our results do not provide support for the market timing hypothesis. We also find a negative association between net financing and firms’ market return suggesting a negative impact of the net financing decision on firms’ return. Our results show no association between initial public offering and firms’ market return. This suggests that a suitable market return did not appear in initial public offerings. The findings also show that firms with an ability of using internal resources in its capital structure are more likely to perform well than expected in the capital market.

The purpose of this study is to explain the opposite of the idiosyncratic volatility based on breaking up the idiosyncratic volatility into expected idiosyncratic volatility (EIV) and unexpected idiosyncratic volatility (UIV) and analyzing its split effects on the explanation of cross-sectional changes of individual stock. This relationship is studied in a sample consisting of 95 companies approved in the Tehran Stock Exchange during the years 2002 and 2011 using Fama-Macbeth regression model (1973) and the portfolio approach. The evidences from the study show that EIV alone is not able to explain the return changes, so by taking both EIV and UIV simultaneously, the positive coefficient of UIV becomes meaningful in terms of the statistics. If size, book value to market value ratio, momentum, liquidity and dilatory effect are controlled, the results would remain the same. So it seems like the main source of the opposite of the idiosyncratic volatility in Tehran Stock Exchange is caused by the unexpected idiosyncratic volatility.

The concept of overvaluation is the market price of share higher than its intrinsic value. Financial and accounting literature indicates that the managers of overvalued firms use the real earnings management to maintain this position. The aim of this study is to investigate the effect of over-valuation stock prices on real earnings managemen. Target sample consists of 80 companies during 1383-1391. Following Badertscher (2011), proxies of real earnings management are including of abnormal operating cash flows, abnormal production costs and abnormal discretionary expenses. Also, the ratio of the market price to intrinsic value is considered as a proxy of stock over-valuation, Residual income model was used to measure the intrinsic value, Panel data method was applied to examine the effect of over-valuation on real earnings management. Results indicate that the over-valuation has significant effect on abnormal operating cash flows, abnormal discretionary expenses and abnormal production costs as the proxies of real earnings management. In other words, these results can be deduced that firms with higher value of shares are expected tendency to sustain high performance and earnings management.

According to the growing importance of financial markets, existence of any volatility in the market has dramatic effects on the economy. Therefore, in a dynamic financial markets including stock market, forecasting has improved to one of the most important issues in financial sciences. In this regard, this paper evaluated existence of long memory in returns and volatility of the market price index by using daily prices and returns Tehran Stock Exchange data from 2009/04/04 to 2013/10/22. The results of this study confirm the existence of long memory in both the mean and variance equations. After confirming the existence of long memory in this index, we used GARCH-type models (including non-fractal and fractal models) to track its volatility. Conclusively, comparing the information criteria (Akaike and Schwartz) of various conditional variance heteroskedasticity models, we found the performance of the ARFIMA (1, 2) -FIGARCH (BBM) model is desirable.

Financing of companies investments are usually done by some various financing tools that each of them have their own specifications. In Iran, most of these tools are limited to loans and common stocks. This study considers and simulates the role of financial leverage on intrinsic value and stock price of national Iranian copper industries company via heuristic approach and by using system dynamics method and the relations of financial and capital market data. Research systemic model has been simulated and analyzed by this approach and applying Vensim DSS software. The overall results shows, increase of financial leverage has little role on company value however increase of equity has an influential role on the decrease of stock expected return rate and increase of company value; so that at the end of study horizon capital cost rate decrease till seven percent and at the late of the period the stock price will experience close to eight thousand rial.

Forecast of cash flows is important for users in the inside and outside the organization. The most important objective of financial reporting is to provide information to forecast cash flows is presented. The purpose of this study is The Comparative of Accruals Ability and Cash Flows Based on Original Figures Versus Revised Figures For Predicting Future Cash Flows. The statistical society of the research comprises those firms listed in The Tehran Stock Exchange and whose financial lists have been restated. To fulfil the research, data from 162 year-firm from the year 1386 to the year 1390 have been collected, The present research in terms of purpose is practical and is a descriptive-correlation research. The data are analyzed using the Eviews software. The method used in the resarch is the linear regression, and the Vuong test is used to compare the research models. The research results display that the restated accruals and the restated cash flows are, respectively, more ability of predicting the future cash flows, compared to the main accruals and the main cash flows.