THE IRANIAN ACCOUNTING AND AUDITING REVIEW
Year:2007 | Volume:13 | Issue:46|Papers Count:13

This paper empirically investigates, in an emerging market, the functional form of the relation between earnings and stock prices under an option-based equity valuation framework. We use in the regression and panel analyses a sample data of 226 Iranian manufacturing firms listed on Tehran Stock Exchange (TSE) for the period of 1991 to 2004. Employing after-tax earnings and beginning of- year equity book value, both on a per share basis and deflated by the General Customer Price Index, we provide graphical and statistical weak evidences on the convex form of price-earnings relation and contribute in the market-based accounting literature.

This study examines the implications of value-based financial measures such as return on equity, return on assets, market-value-added, and economic-value-added on the Dow Jones Industrial, Transportation, and Utilities company stock prices. It also examines stakeholder satisfaction on firm performance using several financial proxies. Using cross-sectional data and regression analysis, the results indicate that all value-based performance measures have a significant relationship with prices. The results also show that stockholder satisfaction, measured by return on equity, has a strong and positive correlation with share values. Consumer satisfaction, measured by sales volume, also showed a strong relationship with stock prices.However, the significance of the relationship between bondholder satisfaction measured by the time-interest-earned ratio and prices varied from positive to negative and was insignificant. The effect of taxes as a proxy for corporate social responsibilities on share values was mostly insignificant. Overall, the results show that stock price maximization as the primary goal of a firm may lead to the satisfaction of stockholders and consumers. However the relationship between price maximization strategy and bondholders and society satisfaction require further investigations.

The linear and nonlinear relationship of financial ratios and stock returns of Tehran stock exchange listed companies our study investigate the linear and non-linear relationships of financial ratios and stock returns of the listed companies on Tehran stock exchange during 1377 to 1387. The above said ratios contain three categories of debt, profitability, and market rations. The 12 months stock return calculated in two wags as follow: (1) The return of 12 months of the rascal period (RETT)t, and (2) The return of 12 months period beginning 1 st of Mordad until Tir 31 st of the next year (RETB)t+1 The regression analysis technique is used for testing the relationship between variables and the degree of significance of our predicted models. The result of our investigation showed that these are a linear and nonlinear relationship between finial ratios and stock return. Due to the low magnitude of the relationship; the result of our investigation could mitigate its reliability. Nevertheless, since the zero distance from origin models (a=0) have more explanatory power than non-zero distance models (a¹0), the former model calculated under RETB approach in our study, could have the best explanatory power.

The Quality Function Deployment concept has been first developed in Japan in 1966 by Yoji Akao and disseminated through a paper, in 1972. It arrived in the United-States in 1984 and latter on in other industrial countries (Clausing, 1994). Quality Function Deployment (QFD) is a strategic management tool, which is capable of measuring, managing, and improving the quality of the product design process by listening to the customer’s voice. What has differentiated our arena from the other times are the speed and complexity of changes. Most of these changes show themselves in the wants and desires of customers.On the other side, one of the most important factors in management success is quick responding to the changes. While customers and their satisfaction guarantee the sustainability of the corporate, manages must coordinate all their activities and investments in tune with the customers' satisfaction. Managers relying on the human resources, as the most important resource to the organization, must respond to the environment and customers' satisfaction.This paper is trying to distinguish the educational needs of Satcom Company based on the customer needs. So we have used one of the most useful techniques, called QFD. Of the results of this paper we can name: education needs, ranking these needs, coordination courses with the company processes. Of the other side result are of coordinating processes and service characteristics and customer needs.

Many recent studies accounts for the relationship between market risk measures and accounting risk measures. There is also a relationship between risk and bid-ask spread. Therefore some researchers have studied the relationship between financial information as measures of risk and bid-ask spread. The main goal of this paper is to review the relationship between financial information and bid-ask spread in Tehran Stock Exchange. Therefore 156 firms of statistical society that their necessary information for a three years period was available are selected. Then information about 14 independent variables is studied and bid-ask spread was measured as the dependent variable. Univariate and multivariate regression techniques were used to examine the hypotheses. The significance of the models was tested according to T-test and F-test. The conclusions account for that the model that includes total independent variables accounts for more than sixty eight percent of variations of the Bid-Ask spread.

Various calls have been made for the disclosure of value added data, and information content of it, has been examined in the accounting and finance literatures in recent decades. This study examines the relative and incremental information content of value added (including value added and cash value added) beyond traditional data (earnings and operating cash flow). Thus, the relationship between stock returns and changes in value added, cash value added, earnings and operating cash flow, was examined for production Companies at Tehran Stock Exchange (TSE), in the period of 1998 through 2003. For testing the hypotheses of this research, regression method and OLS technique was used, for both of cross-sectional and pooled data.Despite of Belkaoui et al's (1991-1999) and Firer's (2004) studies that showed value added data has greater information content than conventional data, this study’s results show that earnings has the highest information content in comparison to value added data and operating cash flow. In accordance to Belkaoui (1994), the value added data provides incremental information content beyond traditional data, and vice versa. Besides the results of this research is the same as some previous study about greater explanatory power of accruals versus cash flows such as Arabmazar (1995), Subramanyam (1996) and Haw et al (2001).

Financial performance is one of the important measures for organizational effectiveness and is the mental disturbance of organizational development researchers and executives. In other hands, information technology as one of the important development levers has an important position in organizational development plans.The first mental disturbance of executives of these plans is productivity effects of information technology. In this research, financial performance has been defined as the measure of effectiveness -an important dimension of productivity. Against meta-analysis approach, information technology effectiveness has been delaminated in past researches subjected IT effect on financial performance. Finally, subjects of this research are: I) Is there any difference between effectiveness of information technology for substantial financial performance and 2) Is there any difference between effectiveness of substantial information technology measures on financial performance.

The major aim of this research is to achieve a more appropriate investment model in portfolio selection for risk taker investors. In this research Markowitz model is the base for comparison in the Portfolio theory, which can construct an optimum portfolio on the basis of the special assumptions. In the present study, along with Markowitz model, the created models through the Artificial Neural Networks (ANN) are applied. Then they have been compared with Markowitz model in several cases of investment. The learning pattern for neural networks is “back propagation”. The portfolios consist of twenty shares in the Tehran Stock Exchange (www.tse.ir), which has been studied for a period of thirteen months. In both Markowitz and ANN portfolios, there is a significant difference between the daily return and the outcome of the investment at the end of the investment period in the test set. Both of these two models are statically and dynamically applied, and in both cases the neural networks’ portfolios outweighed the Markowitz’s portfolios. In this research, the suggested portfolios are for the risk takers and the major goal is to maximize the portfolios’ return. The risk of the portfolios constructed by the neural networks is less than those of the Markowitz model. Furthermore, the transaction costs have not been computed in the Markowitz and neural networks.This study shows that employment of neural networks in portfolios selection can be effective.