JOURNAL OF FINANCIAL ACCOUNTING KNOWLEDGE
Year:2020 | Volume:6 | Issue:4 (23)|Papers Count:8

Purpose: Studies have shown that price trends such as momentum in the stock market form opportunities for abnormal returns. The underreaction of investors to reference points, due to behavioral bias, is one of the reasons for forming momentum. In this research, the role of recency bias in forming momentum pattern is investigated. Methods: Research is a ex-post facto research that is carried out using a portfolio study method and data obtained from 108 companies from Tehran Stock Exchange during the 10 years from the beginning of 1386 to the end of 1395 (Solar Hijri-Iranian calendar) and selecting the three reference prices including 13-, 26-and 52-week high prices. Also, robustness tests based on Fama-French multi-factor model and Fama-MacBeth model. Results: Momentum strategies based on 13, 26 and 52-week reference prices in the portfolios of 20% winner-loser stocks are 0%, 8. 2%, and, 8. 1%, respectively, the latter two being statistically significant. With 3 and 6-month echo periods, the strategy of the 26-week high at portfolio levels is significant and this return is maintained by adjusting the risk factors. The results were evaluated by robustness tests and the evidences indicate that the findings are significant in the presence of control variables. Conclusions: results showed momentum strategy based on 26-week high price due to recency bias (that is defined by recency ratio) has a higher performance compared to other reference prices that can be explained by the phenomenon of updating reference points. It also improves with increasing echo effect. Contribution: In this study, the role of the recency bias and the echo effect with the three reference prices is examined and the 26-week high price is considered as a notable reference price which along with other reference prices in theory (such as a 52-week high price) can be used to define the momentum strategy.

Purpose: The purpose of this article is to review the progress of audit research from the beginning to 2020. Methods: The main research method of this article is bibliometric analysis and social network analysis which studies the characteristics of published articles such as authors, countries, topics, etc. The sample of this research is 8357 articles in the field of auditing indexed in the Web of science database from 2020 to the beginning. Results: The results show that the general trend of publication of articles is ascending and the highest number of articles is published in 2018. The most frequently used words are: audit quality, audit committee, audit fees, internal audit, auditor independence, auditing standards, audit risk, internal control, and non-audit services. The most cited article is an article entitled "Managing Profits and Characteristics of Board Members and Audit Committees" published in 2002. The US is among the most active publishers in the field. Conclusion: The evolution of keywords can be divided into 4 categories: 1) Auditor characteristics and audit methods 2) Judge's report and report 3) Auditors' role being enhanced and their attention 4) Increased audit quality and Accountability of auditors and managers as well as increased scope for nonfinancial reporting. Contribution: There has been no comprehensive research on the research performed in the field of audit, the general trend of recent developments and future research directions.

urpose: Regarding the effectiveness of whistleblowing in the discovery of accounting fraud and the impact of justice on the occurrence of ethical behavior in society, the purpose of this study was to investigate the role of procedural, interactive and distributive justice in the tendency to disclose fraud among accountants. Methods: The statistical population was accounting staff in the private and public sectors and the sample size was obtained by random distribution (n=596). The data collection tools were a questionnaire and the organizational justice scenarios for accounting wrongdoing adapted from Seifert (2014). Data analysis and hypothesis testing were performed by structural equations with partial least squares. Results: The findings showed that procedural, interactive and distributive justice have a significant effect on the whistleblowing intentions for accounting wrongdoing at the significance level of 95%; however, no significant difference was found between accountants in the private and public sectors. Conclusions: Based on results, Thus, procedural, interactive and distributive justice lead to significant intentions for whistleblowing between accountants in the private and public sectors. Contribution: The results can be used in organizations and professional bodies to deal with accounting fraud with regard to the role of types of justice.

Purpose: The purpose of the present study is to determine the impact of the trade credit financing on the risk of stock price crash risk by emphasizing the role of information asymmetry. Methods: In order to achieve the research objectives, 141 companies is selected from the listed companies in Tehran Stock Exchange during 2008-2017. Multiple regression model and panel data is used to test the research hypotheses using two criteria of stock price crash risk. Results: The results indicate that trade credit financing does not have a significant effect on the stock price crash risk. Also, information asymmetry cannot affect this relationship. Conclusion: The results of the research suggest that suppliers can not prevent future stock price risk through regulatory and information mechanisms, in other words, suppliers can not prevent bad news from accumulating. In fact, Trade credit does not provide much of an advantage to the supplier, and the supplier cannot evaluate and monitor its customers. Contribution: Most of the research about the stock price crash risk has focused on the uncertainty of information, corporate governance, and operating activities and has not paid much attention to the impact of financing. In this study, the relationship between financing through trade credit and the risk of stock price crash is discussed, Given the issues that may affect this relationship, an analysis and consideration of one of these factors, that is, the gap between the producer and the user and is known as information asymmetry, Paid.

Purpose: Companies are looking for a targeted cash level so that they can maintain their financial flexibility. However, in some cases, companies may diverge from this level and return gradually to the optimal cash holdings level. The maintained cash and its targeted level may vary due to the adjustment costs, so the adjustments speed is affected by firm’ s attributes. Accordingly, this study aims to investigate the effects of growth opportunities, financial constraints, and financial distress on the speed of adjustments in the cash holdings of listed small and medium sized companies (SMEs) on Tehran Stock Exchange. Methods: For achieving this purpose, we selected 75 listed small and medium sized companies on Tehran Stock Exchange as a sample during 2012 to 2017, using multiple regression equations based on hybrid data. Results: Results show that the holding cash adjustment speed of small and medium sized enterprises to reach the targeted level is affected by growth opportunities, financial constraints, and financial distress. Conclusion: The findings show that small and medium-sized companies are rapidly adjusting their cash due to concerns about losing growth opportunities, as well as financial constraints and costs related to financial distress. Contribution: These results could be beneficial for Iranian small and mediumsized companies with bank-based financing systems, or other small and mediumsized companies that have limited access to other financial resources. It can also improve managers' understanding of cash management and affect their responses to financial and economic shocks.

Purpose: Considering the important function of elements such as cash holdings and social responsibility in the realm of accounting studies, the study of factors affecting the relationship between them is important. Therefore, the main purpose of this study is investigating the moderating role of systematic risk and corporate governance on the relationship between social responsibility and cash holding. Methods: In order to reach the objectives of the study, 118 firms accepted in Tehran Stock Exchange between the years 2012 and 2017 have been selected, and based on compositional data analysis method, the hypotheses of the study have been tested. Results: Based on the results of statistical tests, it has been found that systematic risk has been able to affect and increase the impact of social responsibility on the cash holdings; however, the moderating role of corporate governance on the relationship between social responsibility and cash holding was verified at 90% confidence level. Conclusion: In order to protect stakeholders’ rights, companies that care about their duties of social responsibility need to hold more cash. Accordingly, the increase in systematic risk increases the need to take extra cash. It also seems that corporate governance reduces the need for cash holdings in companies, and this way it is the best strategy for companies interested in investing in social issues. Contribution: Investigating the moderating effect of corporate governance, along with systematic risk factor, can have information content in examining the effect of social responsibility on cash holding.

Purpose: Managerial ability goes beyond the corporate economical characteristics, and hence exerts considerable effect on financial reporting transparency and information environment quality. The purpose of this study is to analyze whether managerial ability influences corporate information environment quality. Methods: In this study, the model developed by Damirjan et al. (2012) is employed to measure managerial ability, and the model designed by Fakhari and Rezaei Pitenoei (2017) is also adopted to measure corporate information environment quality. The research hypothesis is built on a sample of 485 firmyear listed on the Tehran Stock Exchange during the years 2013-2017 and then tested using multivariate regression model using panel data. Results: Following signaling theory, the results reveal that managerial ability improves corporate information environment quality. Also, the results of the sensitivity test indicate that the substitution of an alternative measure for managerial ability and information environment quality does not influence the major results, thereby confirming the robustness of the results. Conclusion: More able managers have better performance due to their greater awareness of their business, industry, and business environment, and are more likely to be interested in communicating their superior performance through more transparency in corporate financial reporting and information environments. Contribution: The findings of this study not only fill the gap in the field, but also help managers, investoes and capital market regulators make informed decisions.

Purpose: Due to the important role played by the securities exchange in recent years in the lives of different segments of the population, today attention to issues around financial reporting is understandable, relevant, reliable, transparent and safe, as well as problemes and challenges to financial reporting Immunization from has become more important. Therefore, the purpose of the present research is to identify the challenges of Financial Reporting Immunization using a grounded theory approach. Methods: In this research, the challenges of financial reporting were investigated by interviewing 23 experts and experts through snowball or chain sampling and analyzing interview data by applying grounded theory method. Also, using open coding, axial coding and selective coding, the concepts, categories, specifications and dimensions of the categories that were classified into contextual factors, causal conditions, strategies, intervening conditions, and outcomes were extracted and presented and Approved with the expert opinion of the expert. Results: The findings indicate many challenges in various aspects of Financial Reporting Immunization in Iran. Major Challenges in Financial Reporting Immunization from the Perspective of More Participants Based on Economic Conditions, State-Owned Economy, Failure to Implement Article 44 of the Constitution, Lack of Executive Guarantee, Lack of Accountability-Accountability Challenges, Audit Professional Challenges and Major Weaknesses in Internal Control System have been. Conclusion: The challenges posed can be an alarm for the accounting and financial reporting system and if not identified and resolved in a timely manner, it may even move companies away from competitiveness and diversification. Contribution: Research findings, in addition to developing the theoretical foundations of Financial Reporting Immunization, provide valuable insights for corporate executives and professional authorities about the importance of corporate financial reporting. Despite the importance of financial reporting, the challenges of financial reporting have not been investigated so far and its various aspects have been examined in this research.