JOURNAL OF FINANCIAL MANAGEMENT STRATEGY
Year:2017 | Volume:5 | Issue:1 (16) |Papers Count:7

In recent decades due to financial scandals, corporate governance has received special attention in the field of accounting. The transaction with related parties is of the usual features of current activities. So this study was to evaluate the effect of corporate governance quality index on limiting earning management using unusual transactions with related parties in 70 companies listed in Tehran Stock Exchange during the period 2010-2015. The results of the data analysis showed that corporate governance has significant effects on unusual transactions with related parties. This result shows the importance of corporate governance and efforts to improve it and help improve earning management.

The profitability of banks is a crucial factor for economic stability. Banks, as financial and service institutions, have a determinant role in cash and wealth flow of society; hence, they have a considerable position in economy. Considering global attempts in promoting the quality of supervision on banks and banks’ direction within financial health, it is vital to study the indicators of banking soundness and their effects on the efficiency of commercial banks. This study aims to evaluate the performance of commercial banks in Iran through an accurate method based on literature of CAMELS indicators. Accordingly, the effect of banking soundness indexes on the profitability of commercial banks was assessed and evaluated during 2005-2014. For this purpose, Hansen threshold panel regression approach (1999) was used and the obtained results indicate that capital adequacy at appropriate threshold (above 10. 23%) has positive and significant effect on the profitability of commercial banks in Iran while lower capital adequacy than 10. 23% threshold has a negative and significant effect on the profitability of banks. Also, the results imply a significant effect of other banking soundness criteria such as the quality of banks assets, management quality, quality of liquidity and sensitivity to market risk on the profitability of studied banks.

Predicting the risk of financial bankruptcy is one of the most important issues in the field of companies’ financial decision. Accordingly, a variety of models that each is different in terms of predictor variables and techniques has been introduced so far. The use of the combination of accounting and market-driven variables in the model as input will have definitely a direct impact on the results and accuracy of forecasts. In this study, the prediction was accomplished by using a hybrid model (the use of accounting and market-driven variables) and neural networks technique of multi-layer perceptron model (MLP). The sample of research consists of 90 accepted companies in Tehran Stock Exchange (31 bankrupted companies in accordance with article Iran’ s 141 trade laws and 59 non-bankrupted companies) during 2007-2014 period. The research results show that the hybrid model (combination of accounting and market-driven variables) using neural network technique has higher accuracy than each of the two accounting models and market-driven model in predicting the risk of financial bankruptcy. Likewise, the market-driven model is more accurate than accounting model.

Capital structure as the most important and effective parameter on the orientation and valuation of the firm in the capital markets has been considered. The purpose of this study is to investigate the factors affecting the company's capital structure with an emphasis on the business cycle in the companies listed in Tehran Stock Exchange. In this study, 102 companies in Tehran Stock Exchange during the years 2007 to 2014 were studied; among the 816 firms-year based on business model in this research; 483 firms-year from recession period and 333 firms-year from prosperity. The study in terms of purpose is applied and the research method is correlation and causal after events and hypothesis testing is correlation and classic regression tests. The results show that the criteria of profitability, firm size, tangible assets and business risk have significant and strong effects (as the company's independent variables) on capital structure (as the dependent variable).

The aim of this study was to evaluate the relationship between stock liquidity dimensions and put option volume vas a new financial instrument in Iran. For this purpose, the data about companies listed in Tehran Stock Exchange whose put option was published had been collected. In this study, the dimensions of stock liquidity are the independent variable and the volume of put option is the dependent variable. The difference between buy and sell proposed stocks price, market depth and the number of transactions were used to measure stock liquidity. According to stock liquidity metrics, three hypotheses have been developed. It is found the there is no relationship between bid ask spread and market depth with put option volume but a positive relationship between the number of transactions and the liquidity of put option was observed. The results show that in Iran in contrast with the previous research, shareholders do not pay attention to liquidity stock when they want to buy put option but do it just for covering risk management.

The purpose of this study is to investigate the relationship between corporate culture and management behavior (optimism) with financial reporting risk in companies listed in Tehran Stock Exchange. The population of the present study consists of companies listed in Tehran Stock Exchange from 2008 to 2014 and sample size is equal to 109 companies by using screening method after the elimination of outlaying observations. This study is an applied study in terms of purpose. The design used in this study is of ex post facto type (by using past information and data). For collecting information, bibliographical method is used and information was collected from Stock Exchange Organization website, Rahavard Novin and Tadbir Pardaz applications. In this study, considering the existing type of data and statistical analysis methods, panel data method was used. The results obtained from data analysis by using multivariable linear regression based on panel data with fixed effects indicated that there is a direct and significant relationship between corporate culture and management behavior (optimism) with financial reporting risk in companies listed in Tehran Stock Exchange.

The purpose of this paper is to examine the effect of the board characteristics and the management entrenchment on the diversification strategy at firms listed in Tehran Stock Exchange. In this regard, 110 companies were selected for the period 2008-2014. Panel data method was used to test the hypotheses. In order to examine board characteristics, board size and board independence proxies and to review the management entrenchment, CEO duality, managerial ownership and over investment risk were used. For measuring corporate diversification, Herfindahl and entropy were used. The results show that the size and independence board have negative and positive effects on corporate diversification. This means that company diversification is at high level with large boards and low independent board members. The results show that the CEO duality and the increase of over investment risk have a positive effect on corporate diversification, while managerial ownership has no effect on diversification. The results are consistent with agency theory. According to this theory, the increase in the conflict between shareholders and managers makes the internal managers motivated for opportunistic behavior in order to diversify their enterprise.