JOURNAL OF ACCOUNTING KNOWLEDGE
Year:2020 | Volume:11 | Issue:2 (41)|Papers Count:8

Objective: Regarding the nature of banks in the economy, establishing corporate governance based on a comprehensive and unique model is of particular importance. This study aims to present an indigenous model for Iranian banks and determine and classify its dimensions, components, and indicators. Method: The theoretical foundation and background of this research were reviewed, using the latest domestic and international standards of different banking systems around the world. Then, by collecting them, a basic corporate governance model was formulated in a systematic thinking framework and was examined by 110 experts, using a fuzzy Delphi method. Results: Based on the analysis of the views of experts, the systemic model, and its 19 components and 153 indicators were verified, using a systematic thinking framework within four dimensions of environmental factors, inputs, processes, and goals. The experts' views rejected nine environmental indicators, one process indicator, and seven inputs indicators. Conclusion: The final model in this study, concerning its comprehensiveness and breadth in all dimensions, can provide a criterion for establishing corporate governance in the banks and assessing their status.

Objective: This study aims to provide a model for executive directors' compensation in private manufacturing companies, based on a balanced scorecard framework. The framework contains retrospective and prospective criteria in four areas of financing, customer affairs, internal processes, and growth and learning issues, which based on them it is possible to evaluate the manager at best and outline the company's future road-map. Method: The Method of this research is qualitative and of survey type. In the first step, the factors influencing the design of the compensation plan were determined, using the Fuzzy Delphi method and interviewing with 16 academic experts. In the second step, the weight of each of the four balanced scorecard perspectives in the proposed plan was determined, using the survey method and fuzzy analytical hierarchical analysis. In this step, 22 experts, who were CEOs or members of the board of directors of the companies in different industries, completed the research questionnaire. Results: The main factors of the proposed model were in the three groups of manager characteristics, internal environment characteristics, and external environment characteristics. Based on the findings, in the manager characteristics, the factor of effective communication with the group, and in the proposed plan of research, the growth and learning perspective are the most important. Conclusion: Achieving the highest coefficient for growth and learning implies that from the perspective of the experts, the underlying changes in allocating compensations to management should have the highest priority.

Objective: The purpose of this study is to examine the effect of auditor's professional skepticism, PS, on the assessment of fraud risk, considering the moderator effect of communication skills and social undermining among 445 auditors working in public and private audit institutions in Tehran province. Method: This study is applied research in terms of the purpose, and a descriptive-survey type, using data from the year 2017. We examined the hypotheses in the forecasting model of relationships, and determined the moderator effect of communication skills and social undermining factors on the relationship between auditor's PS and fraud risk assessment, using the inferential statistics. The data was collected from a questionnaire and analyzed by a structural equation system using Amos software. Results: Findings showed that only two factors of six of the PS, including questioning mind and judgment suspension, have significant relationships with fraud risk assessment. Communication skill has positive and significant moderator effects on three indicators of the PS in fraud risk assessment, namely knowledge search, judgment suspension, and self-confidence. Also, findings indicated that social undermining has negative and significant moderator effects on the three indicators of the PS in fraud risk assessment. Conclusion: Because auditors' behavioral and ethical characteristics are effective in applying professional skepticism and fraud risk assessment, it is important to pay more attention to auditors' behavioral and ethical dimensions in the work environment.

Objective: Investment efficiency is one important factor affecting a firm's performance. Also, financing decisions affect investment decisions, regarding the effects of the non-optimal capital structure on the rate of capital cost and cash flows of the firm. This study examines the relationship between deviation from optimal capital structure and inefficiency of investment. Methods: This is a descriptive, correlation, and post-event study. The statistical population consists of the companies listed in the Tehran Stock Exchange, and the sample comprises 142 companies during 2007-2017, accounting for 1562 company-years. Results: The findings showed that an increase in the deviation from optimal capital structure increases investment inefficiency. Also, an increase in the positive deviation from optimal capital structure (over-leveraged) has a significant and negative effect on over-investment and a positive effect on under-investment. Besides, an increase in the negative deviation from optimal capital structure (under-leveraged) has a significant and positive effect on over-investment and negative effect on under-investment. Conclusion: The results imply that the optimal capital structure can affect investment efficiency by moderating the cash flow availability and the expected interest rate.

Objective: Management earnings forecasts are one of the mechanisms by which management provides information about the future of the profitability status of the company. This study aimed to examine the effect of bias in management earnings forecasts on investment behavior of the firm and information asymmetry of the companies listed in the Tehran Stock Exchange, TSE. Method: This study is applied in terms of purpose and correlation in nature. To achieve the aim of this study, a sample of 155 companies listed in the TSE was selected between 2006 and 2017, using a systematic random sampling method. The relationships between variables were determined by multivariate regression. Results: Study findings indicated that the bias in management earnings forecasts has a negative effect on the investment behavior of the firm. Conclusion: Managers usually report earnings forecasts with bias and hide the inefficiency of investments to protect their own interests and the comfort of actual investors and other stakeholders.

Objective: The quality of firm management can have a significant effect on firm value, and can provide a basis for making proper economic decisions by preparing useful reports and publishing them in the capital market. Also, political connections affect managers' motivation for financial reporting and preparing financial statements. This research aims to examine the influence of political connections on the relationship between management ability and fraudulent financial reporting in the companies listed in the Tehran Stock Exchange, Tehran Stock Exchange. Method: Regarding the purpose of this study, a sample of 158 companies listed in the TSE was selected from 2011 to 2017, and then, a data of 1106 firm-years was analyzed by a polynomial logistic regression model. Results: The findings showed that there is a negative and significant relationship between management ability and fraudulent financial reporting. Also, political connections have a significant and positive impact on the management ability and the fall of fraudulent financial reporting. Conclusion: The increased ability of management reduces the fraudulent financial reporting, and the political connections of the firm reduce the influence of the increased ability of management, aiming at reducing fraudulent financial reporting. That is, in companies with political connections, as management ability increases, fraudulent financial reporting increases. In other words, in companies with political connections, the manager's ability to reduce fraudulent reporting is weaker than the manager's ability in the fraudulent area in companies without political connections.

Objective: The purpose of this study is to examine the relationships between management overconfidence, internal financing, and investment efficiency in the companies listed in the Tehran Stock Exchange. Method: A sample of 130 companies was selected in the period 2007-2017. To measure investment efficiency, the indicators of over-and under-investment were rated. Also, to measure management overconfidence and internal financing, capital expenditures and retained earnings were assessed, respectively. Results: The findings showed that there is a positive relationship between management overconfidence and internal financing. Also, there are positive relationships between management overconfidence and investment level, and between management overconfidence and over-investment, and there is a negative relationship between the management overconfidence and under-investment. On the other hand, the results showed that there are positive relationships between internal financing and the investment level, and between internal financing and over-investment, and that there is a negative relationship between internal financing and under-investment. The results indicate that 1) internal financing has positive effects on the relationship between managerial overconfidence and the level of investment, 2) the interactive effect of internal financing on the relationship between the managerial overconfidence and over-investment is significant and positive, while the similar effect concerning under-investment is not significant. Conclusion: Existence of internal resources increases the motivation of overconfidence managers in using personal gain resources and leads to non-optimal investment behaviors. This process is done by increasing the levels of investment.

Objective: The objective of this study was to investigate the effects of tax avoidance on the investment efficiency of the companies listed in the Tehran Stock Exchange, TSE. To measure tax avoidance and investment efficiency, we used the cash effective tax rate and the Richardson (2006) model, respectively. Method: A sample of 152 companies listed in the TSE from 2009 to 2018 was selected to test the research hypothesis, using a panel data least squares regression model. Results: Findings showed that an increase in tax avoidance reduces the efficiency of the company's investment. Conclusion: Although tax avoidance activities require hiding the facts and the performance of complex transactions that lead to opportunistic behaviors of management and reducing the company's investment efficiency, in Iran, tax avoidance is a procedure not necessarily intended to create efficiency, but one that typically followed by companies.