The Financial Accounting and Auditing Researches
Year:2021 | Volume:12 | Issue:48|Papers Count:10

Most of the studies investigated the relationship between accounting information and market value have emphasized on reduced value relevance of accounting information, especially earnings. In reviewing these studies, there is a pre-assumption that market price is an appropriate alternative to the value of stocks; a claim which, based on many researches, may lead to wrong inferring in concluding based on this type of studies. Much evidence has been reported in previous studies indicating that market reaction to reported information, including accounting information, is not appropriate and the market, at least in the short term, does not react the effects of new information rightly. This issue might be involved in reducing the usefulness of accounting information. In order to test the reducingdriversof the correlation of earnings with stock returns, in this research, the time trend of variations in the correlation of accounting earrings with stock returns was investigated and the share of each of these two variables was tested in variations in this relationship. The experimental results obtained from the review of the 15-year period of research suggest that the explaining power of accounting earnings has been reduced significantly over time, but this reduction was due to a noise in the stock returns, which this feature of stock returns increased during the research period. While noise in the earnings is a factor for reducing the correlation between two variables, but its effects is not statistically significant and the trend of variations has been reduced over time.

Management capabilities can accelerate the overall goals of the company. Management of Corporate are always looking to make decisions that will bring the highest returns to their stakeholders. As the risk increases, the expected returns on the efficient market also increase. Capable managers can identify existing risks and turn them into opportunities for the organization. Therefore, the purpose of this study is to examine the relationship between management capabilities and components of enterprise risk management and its components. for this purpose, according to the information of 78 companies acceoted in Tehran stock exchange, the model was estimated. The results of the hypothesis test showed that the effect of management capabilities on enterprise risk management was positive and significant However, the effect of management capabilities on components of risk management, strategy risk, Complience risk, operational and reporting alone was not effective and only had a positive and significant impact on operational risk management.

The purpose of this study is to investigate the relationship among opportunistic behaviors, monitoringmechanism, pressure behaviors and earnings management. For this, the information of 124 firms listed in Tehran Stock Exchanges was investigated. For testthe hypotheses, multivariate integrative regression and the OLS (ordinary least squares) have been used. The earnings management has been measured by Jones’ modified model (1991) and the financial distress by Altman Z model (1983). Findings suggest a positive and meaningful relationship between the earnings management and the financial distress. Also, there is a negative and meaningful relationship between leverage (the variable used to measure the regulatory mechanism) and earnings management. Moreover, a meaningful relationship has been found between the proxy of both opportunistic behaviors and earning management. The results of this research could help legislators to draw up strict rules that lead to expansion of public trust in reliability of financial reporting.

Narcissism is a personality trait that its holders tend to admire and exaggerate in about themselves. Narcissistic managers will be more likely to be able to use the power and the asymmetry of information in order to interfere in a financial misreporting. In this research, the influence of CEOs’ s Narcissism on the transparency of financial reporting has been investigated. According to the research constraints, the 110 companies accepted in Tehran Stock Exchange have been investigated. To measure the narcissistic variable, the size of the CEOs’ s signature, and to measure financial reporting transparency from multidimensional criterion that covers a wide range of concepts related to transparency, has been used. The concept of expressed transparency, including both the company's public and private information dissemination channels, and is consider both dimensions of information and quality of information. The results of the research showed that the narcissism of CEOs has a negative effect on the transparency of financial reporting, but this effect was not significant. Also, there is a significant negative relationship between the other behavioral attribute of managers, i. e. overconfidence variable and the transparency of financial reporting.

The purpose of the study was to present an earnings management pattern (EMP) according to Iran conditions. Using the qualitative method multi-grounded theory and semi-structured interviews with 14 Iranian accounting experts selected by using theoretical sampling method-the study managed to present an EMP that included causal conditions, intervening conditions, and phenomena/context, and the strategies related to earnings management and its consequences. The studies on modeling earnings management had been conducted quantitatively in the past and using qualitative methods in introducing the effective factors and managers' motivations in earnings management in Iran had been ignored, which is effective in terms of both knowledge creation and in development of the theory in earnings management.

The purpose of this paper is to investigate the behavior of the difference between the bid and ask price spread and the factors affecting it, based on an intelligent model. The the bid and ask price spread is one of the criteria for assessing the liquidity risk of stocks and the selection of stocks in the investment portfolio. Therefore, this study, by estimating the effect of companies' financial variables on the amount of the bid and ask price spread in the form of nonlinear and intelligent model of artificial bee colony (ABC) and comparing it with conventional linear models, seeks to provide a solution to reduce the the bid-ask price spread. Accordingly, among the companies listed on the Tehran Stock Exchange, 129 companies have been selected. The findings of this paper show that the estimated and analytical results of the nonlinear model based on ABC algorithm are better than the linear model based on panel data.

The presentation of fair accounting information requires the provision of information that is consistent with the economic realities and reflects the effects of changing in the effective factors. The changing in the level of prices and inflation is one of the most important factors which affects on the fairness of accounting information and causes many problems for historical cost accounting model (as the current accounting paradigm); In this research, the development of a model for reporting current values in accordance with the economic conditions of Iran (as an alternative to the historical cost accounting model) has been studied. The research method was survey and the researchdata was collected in 2019. The measurement toolof this research was a researcher-made questionnaire. Based on the results of this study, for accounting reporting in Iran, the current values model is more appropriate than the historical cost, and for measuring current values in Iran, the exit valuation is in the best approach. The necessity of reporting the current value of balance sheet items was another issue under investigation which, based on its results, machinery and equipment items, financial instruments, land, buildings and intangible assets, respectively, have the highest score. According to results, the profit and loss of the capital maintenance should be identified and presented in the statement of comprehensive profit and loss. Also, research findings related to the presentation of current value information indicate that presentation as a supplementary to historical cost information (in a separate financial statement) is the best method.

According to experts, answering a large number of issues and ambiguities that arise from the nature of auditing is possible only by relying on professional judgment. Numerous personal, environmental and professional factors affect the process of professional judgment of auditors. Determining the relationships of these factors, the share and extent of the impact of each of them and providing a model for predicting the professional judgment of auditors is the aim of this study. The present study is applied in terms of purpose and in terms of method, it is a combined research. In this study, using the theoretical foundations, dimensions, components and predictive indicators of auditors' professional judgment were extracted and by Delphi three-dimensional method, 17 components and 85 indicators were identified and agreed upon. The statistical population of this research is partner auditors, individual auditors, auditors working in the audit organization, and non-employed auditors. The required data were collected by a researcher-made questionnaire from 331 as a statistical sample. Inferential statistical methods such as t-test and structural equation modeling using PLS method have been used to analyze the data. The first result of this study is to identify the dimensions and components of predicting the professional judgment of auditors. The model is for predicting the professional judgment of auditors. The results of this study also show that the professional and occupational dimension has the greatest effect on predicting the professional judgment of auditors. The individual dimension is in second place and the environmental dimension has the least effect on the prediction of auditors' professional judgment compared to the other two dimensions.

Studies show that information about financial variables spreads to each other at all times, This issue has become more important with the expansion of communication systems and the interdependence of financial markets. Given that financial markets are interrelated, the information generated in one market can affect other markets. Some believe that one of the most important factors in increasing the price of precious metals, including gold in world markets, is the rise and fluctuation of oil prices. The purpose of this paper is to investigate the dynamic relationships between commodity markets, financial markets and digital currencies with a self-correlated distribution interrupt (ARDL) model approach with the frequency of daily data. The structure designed in this study indicates that there has been the contagion of fluctuations between financial markets. The results showed that the results showed that the overall stock market index had a positive and significant relationship with all other asset markets. The price of crude oil is inversely related to all assets and the exchange rate is directly affected by other financial assets and is inversely related to the price of oil.

The type and quality of the relationship between the auditor and the entity affect the success of management performance audits. In addition, organizational culture influences the interactions between performance auditors and the entity through its effect on employee behavior patterns. The purpose of this research was to examine the effect of organizational culture on the effectiveness of management performance audit. The population of this applied, correlational research consisted of the senior managers, middle managers, and experts of companies that had used performance audit services. Data were collected by using a questionnaire. Given the small size of the population, the entire population was selected as the sample, and after removing incomplete responses, data from 212 questionnaires were analyzed. The Kolmogorov-Smirnov test, KMO and Bartlett’ s test, and structural equation modeling were used for data analysis. Goodness-of-fit indices in structural equations indicated that the main hypothesis of the research was true, i. e. organizational culture has a significant positive effect on performance audit effectiveness. Moreover, the results indicated the significant effect of various dimensions of organizational culture on performance audit effectiveness, including involvement, consistency, adaptability and mission.