THE IRANIAN ACCOUNTING AND AUDITING REVIEW
Year:2005 | Volume:12 | Issue:39|Papers Count:10

Capital Structure is one of the most important and controversial topics in banking decisions and researches. Because of the relationship between capital structure, credit risk and cost of capital, there’s a paradoxical interest in minimizing the capital ratio to gain more profit or to increase the capital volume (to decrease the default risk). To ensure health of monetary system, some regulations are mandated through national and international regulatory bodies. Considering the relationship between bank capital structure and credit risk, mandatory international regulations, and the effect of capital structure on capital cost, examining this problem in bank is very impressive. This research is to determine combination of capital structure of Bank Keshavarzi. To pursue this goal, we examined capital structure in a ten-year period. Some criteria as capital cost and regulations on capital are applied for examining the optimum level of capital structure. To calculate cost of non-operational deposits a questionnaire is designed and distributed among bank branches. After analyzing data, the allocation rate of non-operational costs to deposits was figured out. Finally weighted average of bank capital cost from 1370 to 1379 was handed out. The first hypothesis implies that there is no relationship between bank capital structure and capital cost. This hypothesis is tested with Pearson correlation coefficient and is approved.The next hypothesis implies that capital structure is not optimized in 1379. This hypothesis is assessed in a four-stage model. In all the stages it was not optimized. At the end some suggestions are offered for optimizing capital structure in Bank Keshavarzi and later researches.

The main purpose of this study is to investigate the relationship between corporate performance and cash dividends. The first stage in the analysis involves classification of dividend policy theories in three models: Full information - the tax factor, Information asymmetries and Behavioral models. The relationship between corporate performance and cash dividends is then examined. In order to achieve the aim of this study the data related to operating income, earning per share and cash flows from operating activities as performance criterions and cash dividends has been gathered from companies which have been listed in Tehran Stock Exchange (TSE) through 1998-2002. Regression method is used in order to test the hypotheses of this research.The results indicate a significant relationship between corporate performance and cash dividends in all studied companies, regardless of their related industries.

Traditional accounting systems fail to adequately account for intellectual capital (IC) in a transparent manner. They usually ignore the increasing roles of intangible assets and knowledge and fail to account their real values in their calculations. There is an increasing need to correctly measure and capture the real value of intangible assets and knowledge in financial statements because today’s return on intellectual capital employed becomes more important and the importance of financial capital in the determination of sustained profitability is strongly reduced. Since IC is a major part of firms total real capital, most of the firms are very interested to measure their Ic values. Two important questions in Ic literature are 1) how a firms Ic value can be measured? 2) are there meaningful relationships between firms Ic values and their share market prices? In this research, to answer the first question, we have used five simple calculation methods and then evaluated Iranian firms and industries Ic values based on each method. To answer the second question, we have tested statistically our research main hypothesis that was a confirmation on the existence of a meaningful relationship between firms Ic values with their shares market prices in the Tehran Stock Exchange (TSE).Results of empirical test, at confidence level %95, clearly confirms existing such a meaningful relationship in the TSE.

With development of daily discussions regarding the World Trade Organization (WTO) and gradual joining of different countries to this organization, cost management attracted more attention than before.Countries joining the World Trade Organization seeking means for remaining economically viable in a competitive situation. Those will survive that are able to compete by producing goods and services at competitive costs with high quality. Such companies will be successful and the most important technique that will help them in this regard is target costing system. This paper is analyzing the obstacles in using target costing system in Iranian companies listed at Tehran’s Stock Exchange. Results of this study reveal that none of the components of target costing are used in the sample companies. It is also shown that the level of education and job experience of the respondents in this study has no impact on the findings.

Efficient Security exchange may leads to allocating optimum resources. Efficient market is a market which prices amend and adjust in it immediately based on the new information. Many researches has been performed to show the relationship between prices variation and new information in an efficient market.In this study we have considered the effect of the news about stock split and stock dividend, on stock price in order to determine its efficiency in Tehran security exchange. All authorities believe such news have not really worth to a firm theoretically. In the other word, such news don’t create abnormal return, so here it has been supposed hypothetically that:«The average of the abnormal sample return in the meetings date equal zero.» This study contains two periods from 1372 to 1380 which has been considered separately, and its methodology has been taker exactly from (Gentelmans) F.F.J.R who have studied the efficiency of New - York security exchange in semi strong form.The results show the abnormality return in meetings, so the hypothesis of the research and semi strong form of the efficient market of lran security exchange, is rejected.

In this study we investigate the relative ability of comprehensive income and net income to summarize firm performance as reflected in stock returns. We also examine which comprehensive income adjustments improve the ability of income to summarize firm performance. In this study we investigate this claim that income measured on a comprehensive basis is a better measure of firm performance than other summary income measures. The results do not show that comprehensive income is superior to net income for evaluating firm performance on the basis of stock return and price. In Tehran Stock Exchange except for investment, we found no evidence that comprehensive income for firm performance evaluation on the basis of cash flows prediction is superior to net income. While we found the better situation for state companies (only in other companies), that is firm performance evaluation on the basis of cash flows prediction using comprehensive income is superior to net income. Collectively, our results provide some evidence that show comprehensive income adjustments improve ability of income for reflecting firm performance, while there are not strong results.