Judgment and Decision Making in Accounting and Auditing
Year:2023 | Volume:2 | Issue:5|Papers Count:6

AbstractThis study has investigated the effect of the accounting information quality and monetary policy on bankruptcy prediction. For this purpose, a sample of 135 companies was selected from the admitted companies in the stock exchange. In order to collect the needed data to calculate variables in the research, Rahvardnovin database, Tehran Stock Exchange Organization database and Central Bank database were used. Eviews software and fixed effects panel data regression model have been used to analyze the collected data. This study is useful for financial analysts, managers, accountants and policy makers in order to evaluate the financial position and predict financial bankruptcy of companies. The results of the hypothesis test show that all three hypotheses are not rejected and indicate that the accounting information quality in interaction with monetary policy has a positive and significant effect on bankruptcy prediction. The estimated coefficient of the accounting information quality in the interaction with monetary policy on predicting premature bankruptcy is lower than the coefficients of the variables accounting information quality and monetary policy on predicting premature bankruptcy, and this shows that the interaction of the accounting information quality and monetary policy has a moderating role on It has predicted premature bankruptcy.

 AbstractPredicting stock returns is one of the main concerns of investors, because by this means they can get higher returns at a certain level of risk. Analyzing the information content in financial statements leads to increase the investor learning and changing the signaling of profit. This change can cause investors to change their perspective in using alternative measures of net income, such as gross profit and operating profit, and affect the acquisition of excess stock returns. Therefore, the purpose of this research is to compare the signaling of net income, gross profit and operating profit and compare the effect of profit on the excess returns in companies listed in the Tehran Stock Exchange. The research hypotheses are tested by regression analysis based on panel data, the five-factor model of Fama French (2015) and using the sample data includes 135 companies Listed in Tehran Stock Exchange. The results revealed that the net income signals are higher than the operating profit. The research result also indicates the net income signals are higher than the gross profit. Another result shows that net income has a greater ability to generate excess stock returns than gross profit and operating profit.

AbstractAccording to the theoretical concepts of financial reporting, the purpose of financial statements is to provide summarized and classified information about the financial status, financial performance and financial flexibility of the business unit, which is useful for a wide range of users of financial statements in making economic decisions. Achieving this goal requires that the information is firstly relevant and reliable and secondly comparable and comprehensible, in other words, accounting information must be of high quality. The current research aims to explore the relationship between the quality of accounting information and Institutional investment on the efficiency of investment in banks that are members of the Iranian capital market. In this research, the quality index of accounting information is the quality of accrual items. The statistical population of this research includes 19 member banks of the capital market. Research hypotheses have been tested using OLS regression according to company-year observations in a panel manner. The results of processing the regression models for the first hypothesis of the research indicated that the quality of accruals and Institutional investment has a significant relationship with investment efficiency; The results of the second hypothesis of the research showed that overinvestment has a significant effect on the relationship between the quality of accruals and Institutional investment with investment efficiency. 

AbstractThe aim of this study was to investigate the effect of comparing financial statements on the quality of financial reporting with emphasis on audit quality. It is argued that comparability increases the usefulness of accounting information and makes it possible to identify similarities and differences between economic events for users of financial statements.For this purpose, information on the financial statements of 103 companies has been collected. Multivariate regression with panel data has been used to test the hypotheses.The findings of the research hypothesis test show that the comparability of financial statements enhances the quality of financial reporting, but the moderating role of audit quality is ineffective in this relationship.Managers' ability to evaluate the company's performance and predict future events and to provide information on reliable forward-looking estimates that can be used to report higher quality commitment items increases.

 AbstractThe Securities and Exchange Organization (SEO) Of Iran has considered the mission of the internal audit to provide independent and impartial assurance and consulting services, in order to add value and improve operations. and, in 2013, all listed firms to the Tehran Stock Exchange (TSE) and over-the-counter (IFB) has required to form internal audit. The purpose of research is to investigate the impact of effectiveness of internal audit on the quality of internal audit in companies listed in TSE. For this purpose, 12 hypotheses were developed. It is worth mentioning that the "effectiveness of internal audit" variable was classified into three sections including "competence, independence, realism" and "consequences" into three sections including "management support, support and acceptance of the auditor and interdepartmental coordination of internal auditors". It is also worth mentioning that collecting information regarding the "quality of internal audit" variable. due to insufficient disclosure of information, requires to each firms, either the manager or one of the employees of the internal audit or of the committee members was asked to complete a questionnaire consisting of 32 internal audit quality criteria in 2021. The data were analyzed through structural equation modeling using SmartPLS software. Findings show that the records and results of internal audit effectiveness have a positive and significant effect on the quality of internal audit. This study contributes to agency theory by highlighting factors related to internal audit effectiveness and quality audit outcomes to protect the best interests of managers while fulfilling corporate governance requirements.

AbstractConsidering the competitive market environment that is in sync with the current economic conditions and financial crises, the investors' expectations of the profitability of the company play a significant role in their decisions, therefore, the examination of the template approach on the way of predicting the company's future profit by the management according to The level of risk-taking of the company and, accordingly, the display of the company's value, are important in the application of these decisions, and it seems necessary to address it. The aim of the current research is to investigate the relationship between risk-taking, company value and management's judgment of profit in companies listed on the Tehran Stock Exchange. For this purpose, the information related to 111 companies admitted to the Tehran Stock Exchange was collected and analyzed using multivariate regression.Data analysis shows that there is no significant relationship between risk-taking and management's profit forecast, and there is a significant relationship between the company's risk-taking and the future value of the company's shares. The results show that if the company is risk-taking, its future value will increase.