Financial Accounting Research
Year:2019 | Volume:11 | Issue:1 (39)|Papers Count:6

Information Disclosure in the capital market is an instrument to reduce the Agency costs and asymmetry of information that it affects on expectations and, consequently, shareholders' decisions and it has value relevance with capital market variables. One of the most important items of disclosure in the capital market is disclosure of risk that it is required by the capital market plyers. In this paper, we investigate the relationship between value relevance of disclosure and risk reporting in the listed banks in Tehran Stock Exchange (TSE). We use annual financial statements of 19 listed banks in TSE for a period of 6 years during 1390 to 1395 by estimation three models for explaining the effect of disclosure and risk reporting on price, return and banks value with simple regression analysis through panel data. Results show that disclosure of risk has a positive and significant relationship with price and value of banks, and also has a negative and significant relationship with return. In general, the value relevance of risk disclosure of banks in Iranian capital market is confirmed.

The product market competition is appropriate criteria for assessing company`s success in market and companies need financial resources to win this competition. The companies with limited access to internal and external financial resources for using investment opportunities and increasing competitiveness may set high prices for their products that leads to diminishing power of their competition and this effect may intensify in economic recession. The aim of this research is to investigate the mediating role of product pricing on the association between financial constraints and product market competition across business cycles. The research sample is 150 companies listed on Tehran Stock Exchange (TSE) during 2008 to 2017. The research`s findings show that companies with financial constraints set higher prices for their products that leads to diminishing power of their competition. Also, the results indicate that the mediating effect of product pricing on the association between financial constraints and product market competition across business cycles is not different.

The purpose of this study is to investigate the relationship between the readability of financial reports and tax aggressiveness using simultaneous equation system. In order to examine the readability of financial reports, the Fog Index and the Wilson Model [42] are used to examine the tax aggressiveness. This is an empirical research for the period is 2013 to 2017. The sample consists of 119 companies listed in Tehran Stock Exchange. To test the research hypotheses simultaneous equations are used in. The findings of the research hypothesis test show that there is a double-sided and significant correlation between research variables. The findings show that, as financial reports become more readable, the cautious tax aggressiveness decreases. Also, with an increase in the level of tax aggressiveness, the readability of financial reports will decrease. As a result, in the interests of greater transparency and readability and the control of tax aggressiveness, attention to these two variables by supervisory authorities and investors is essential.

The purpose of this study is to investigate the relationship between managerial ability and corporate transparency with an emphasis on the weakness of internal controls. For this purpose, 122 companies listed in Tehran Stock Exchange during the period of 2008-2017 are selected and four indicators are used to measure corporate transparency: information asymmetry, information uncertainty, timeliness and reliability of information. To measure the management ability Dmryjan et al (2012) model is used. For testing the research hypotheses Stata software version 15 and regression model using panel data are used. The results of this study show that management ability reduces information asymmetry and information uncertainty and increases the timeliness and reliability of information disclosed. In general, we can say that there is a direct relationship between management ability and corporate transparency. Other results of the research show that the weakness of internal controls has a significant effect on the relationship between management ability and indicators used to measure corporate transparency.

The main purpose of this research is to investigate the effect of institutional shareholders on the relationship between accounting conservatism and cash holding in listed companies in Tehran Stock Exchange. In order to investigate this research topic, research hypotheses based on a statistical sample consisting of 106 companies during 9-year period from 2009 to 2017 are tested using multivariable regression models. The results of the test show that accounting conservatism increases the market value of cash. Also, institutional shareholders have a negative and significant effect on the relationship between accounting conservatism and the market value of cash. The findings of this study indicate that conservatism reduces agency conflicts and lessens the market's negative reaction to cash holding. However, the effect of institutional shareholders consolidation reduces the positive effect of conservatism on cash value, which confirms the self-interest hypothesis.

The Audit Committee is one of the board's subsidiary committees that the aim of its' composition is to assist in oversight responsibility of the board by monitoring the financial reporting process, monitoring independent auditors, the effectiveness of internal controls and risk management activities. The purpose of this study was to investigate the impact of the audit committee characteristics, including the size, independence and financial expertise of the Audit Committee on the cost of debt and the investment efficiency of the company. In order to test the research hypotheses, multivariate regression method are incorporated with generalized least squares estimation method (GLS). The sample includes 90 companies listed in the Tehran Stock Exchange for the period 2011-2017, selected by systematic elimination method. The results indicate that, firstly, among the characteristics of the audit committee, the two variables of the size and independence of the audit committee have a significant impact on the cost of debt, but the impact of the financial expertise of the audit committee on the cost of debt is not significant. Secondly, size and independence of the audit committee have a significant negative effect on the investment efficiency and also the financial expertise of the audit committee has a significant and positive effect on the investment efficiency.