JOURNAL OF FINANCIAL MANAGEMENT STRATEGY
Year:2020 | Volume:8 | Issue:30|Papers Count:10

The main purpose of this paper was to examine the dividend policy under the conditions of liquidity uncertainty using natural options. As one of the most important issues of financial management, Dividend policy is, in fact, a basis for valuing companies. The value of all companies is equal to the total present value of their future cash flows. Investors will receive two types of returns in return for accepting investment risk in the company, including cash benefits and capital gains (due to changes in stock value). Stock profits are the most important source of cash payments to shareholders and therefore. As a result, they are of great importance. In this paper, after introducing the method of real discretion and its variants, the randomization optimization problem has been introduced and discussed. Specifically, Monte Carlo simulation method was used to solve numerical problems. The results indicated that earnings and growth opportunities had a positive effect on the value of the company. Finally, the mutual effects of equity and debt income also made a U-shaped relationship in the company's value. Also, there was a negative relationship between accumulated profits and external financing costs.

The main purpose of this article is to examine performance of the accruals trading strategy. According to Accruals trading strategy, investor takes not only a long position in firms with relative low accruals level but also a short position in firms with relative high accruals level. Specifically, the study examines the possibility of earning excess return and excess risk adjusted return implementing the traditional accruals strategy and percent accruals strategy. In so doing, we collected monthly data of 236 companies listed in Tehran Stock Exchange for the years 2011-2018. The hypotheses were tested using hedge portfolio method and t-test. The findings showed that implementing the percent accruals strategy resulted in earning excess return and excess risk adjusted return. Furthermore, implementing the traditional accruals strategy resulted in earning excess return. However, earning excess risk adjusted return implementing the traditional accruals strategy was not verified. Since earning excess return in the efficient market with no anomalies is not possible, findings thus showed that there was accruals anomaly in Tehran Stock Exchange. Furthermore, the results showed that percent accruals strategy was more productive than traditional accruals strategy.

The main purpose of this study is to investigate the􀀄 effect􀀄 of􀀄 the􀀄 firm’ s􀀄 performance and the future risk of price fall of the equities in the firms accepted by the Tehran Stock Exchange during the years from 2012 to 2016. The sample included 500 observation. Framed in a descriptive correlational study, the hypotheses of this study were tested through multiple regression based on panel data method. The findings showed that there was a negative significant􀀄 relation􀀄 between􀀄 the􀀄 firm’ s􀀄 performance􀀄 (the􀀄 rate􀀄 of􀀄 return􀀄 of􀀄 the􀀄 assets, the ratio of the market value􀀄 to􀀄 office􀀄 value􀀄 of􀀄 the􀀄 firm, 􀀄 the􀀄 Toobin’ s􀀄 Q􀀄 index and EPS) and future stock price crash risk in the firms accepted by The Tehran􀀄 Stock􀀄 Exchange􀀄 (TSE). 􀀄 In􀀄 other􀀄 words, 􀀄 the􀀄 firm’ s􀀄 operation􀀄 and􀀄 the􀀄 action􀀄 taken􀀄 to􀀄 buy􀀄 or􀀄 sell􀀄 the􀀄 firms’ 􀀄 equities􀀄 enable us to anticipate the future mutation or stock price crash risk.

Based on transaction cost theory, active management leads to a reduction in transaction costs and thus reduction in the distance between the bids and ask gap. On the contrary, based on the adverse selection hypothesis, when a group of shareholders has the advantage of information over another, there is an information asymmetric which in turn will reduce liquidity. This study is primarily aimed at testing the mentioned theories. Using a panel smooth transition regression model, as a new econometric technique, we examined the data to explore the asymmetric impact of blockholders ownership on liquidity in the 148 firms for the period 2009 to 2018 from TSE. Our empirical results strongly rejected the null hypothesis of linearity, and the test on inexistence of nonlinearity indicated a model with one transition function and two threshold parameters. The first regime (levels of blockholders ownership below 36. 1 percent) showed that liquidity increases with institutional ownership while the trend was reversed in the second regime (levels of blockholders ownership above 36. 1 percent). Blockholders are inherently good or bad for the capital market because their impact varies from diet to regimen, and it seems to be dependent on the percentage of ownership of blockholders and corporate characteristics.

Based on the conventional theories, it is expected that investors be informed about profitability and make the decisions rationality without any emotional behaviors. The role of managers in strengthening the mechanisms of the company can increase the reliability of the profitability which is in itself a factor affecting the investor sentiment. Therefore, the purpose of this study is to investigate the Effect of Board's Characteristics on Earnings Informativeness by Considering the Moderating Role of Investor Sentiment. This research is a library and analytical-scientific study and is based on the analysis of panel data (data panel). In this study, financial information of 136 companies listed in Tehran Stock Exchange during the 2010-2017 (952 companiesyears) was investigated. Eviews software was used to analyze the results of the research. Based on the findings of this research, there is a negative and significant relationship between the Earnings informativeness and investor sentiment, as well as board's characteristics, including the independence, size and duration (experience) of the board, have a significant and direct effect. In this examination of the relationship between Earnings informativeness and the investor sentiment, it became clear that the independence, size and experience of the board would strengthen the negative relationship between them. In other words, these attributes contribute to the informativeness raising and hence less investor sentiment.

Capital cost is one of the most significant criteria in making financial decisions as well as evaluating the financial performance of management. This criterion affects the internal variables of the company. At the same time, it is affected by the environmental factors of the company, especially the macroeconomic variables. Considering the recent major changes of macroeconomic variables in our country, the aim of this study was to investigate the longterm and short-term effects of macroeconomic variables on the cost of capital. Using data from 219 companies listed in Tehran Stock Exchange from 2006 to 2016, five research hypotheses were tested and analyzed by using Autoregressive Distributed Lag (ARDL) method. Based on the results of long-run relationship estimation, the findings of the study show that interest rate coefficients, inflation rate, and oil price change rate are significant as expected. In addition, these variables have a positive and significant effect on company capital cost. In a long run, by increasing the amount of these variables, the corporation cost of capital increases, and by reducing them, the cost of capital can be reduced. Likewise, in a short term, interest rate variable with one period delay, inflation rate variable with three periods delay, exchange rate variable with four periods delay, liquidity variable with four periods delay, and oil price variable with two periods delay have shown their impact on corporate capital cost. Therefore, in spite of the different time interval impact of these variables, they have a positive and significant impact on corporate capital cost.

Money market has an undeniable role in the economy of Iran. The financial distress in this market can have an effect on the whole countries economic system. Anticipation of this situation aimed at confronting and reducing the impact of the banking crises is required. In so doing, the main purpose of this study is to investigate the relationship between capital and liquidity measures and probability of financial distress and possibility of its anticipation in banking sector. In order to meet the purposes of this study, capital and liquidity measures defined by Basel Committee were used as capital and liquidity indexes. Also, Altman Z score was used as criterion of the financial distress. A sample of 16 banks listed on Tehran stock exchange and Iran OTC was chosen. Their data were examined during the years from 2012 to 2017 by logit regression model. The results showed that there exists a negative relationship between capital measures and probability of financial distress but we did not find relationship between liquidity measures and probability of financial distress.

One of the most challenging issues for investment managers is to find out whether the total value added of each of the constituent groups of assets (deposits, fixed income securities and equity) portfolios of mixed investment funds and stock exchanges can be highly based on which one of the dual decisions, namely selection of asset groups or weighting to each of these groups (asset allocation). In order to measure managers' performance and consequently managers' skills assessment, total value added is used with no consideration of the effect of each selection decision on securities and their weighting. This paper is to answer the above-mentioned question and extend the existing methods. In so doing, the value added of each portfolios of asset portfolios of the above-mentioned investment funds is divided into value added from the allocation of assets (weighing). Likewise, the selection of securities, and thus the skills of the managers of each of these funds based on these two decisions were measured. Given the novice of such funds in the Iranian stock exchange and limited information, the results of this paper show that managers of these funds have no sustainability skills in either of these two dimensions. It is worth noting, however, that any increase in the operating time of these funds as well as using more sophisticated models in which returns and risks are simultaneously investigated, we can provide a more sustainable framework for full assessment of managers' skills.

“ Bubble, ” 􀀉 in􀀉 financial􀀉 markets􀀉 refers􀀉 to􀀉 higher􀀉 public􀀉 expectations􀀉 of􀀉 rising􀀉 prices in the future which lead to a temporary increase in prices. One of the most important risks affecting stock returns is the risk of bubbling stock prices. This study aimed to investigate the effect of pricing bubble formation risk on the stock return. The data were collected from 274 companies within a period of the eight years i. e. 2010-2017 based on monthly portfolios. Stock returns were used to measure asset pricing. The research was applied and correlated in terms of objective and post-event research in terms of collecting the research data. Panel data model estimation showed that price bubble factor and size factor had a negative and significant relationship with stock return rate and momentum market facto. Likewise, value factor with stock return rate had a positive significant relationship. Based on the research findings, it can be argued that shareholders can use the price bubble factor to predict the rate of return on stocks and determine the price and value of their stocks and assets.

One of the main challenging decisions which business unit managers always face is how to choose investment projects. Capital budgeting is a process which evaluates and selects the various investment opportunities by the manager. In addition, research and development spending is expected to be a factor influencing decisions related to the budgeting of capital. Therefore, the purpose of this research is to investigate the relationship between R&D expenditures and capital budgeting methods, including net present value, payback period, return on investment and capital cost. For this purpose, 97 companies were surveyed in Tehran Stock Exchange between 1391 and 1395. The results showed that research and development expenditures were significantly associated with capital budgeting methods, with the exception of capital cost. In general, the results indicate that research and development expenditures have affected the capital budgeting methods, which could be considered by managers in the field of management accounting.