THE IRANIAN ACCOUNTING AND AUDITING REVIEW
Year:2009 | Volume:16 | Issue:57|Papers Count:10

This study investigates the relationship between some indicators of political expenses and conservatism in Iranian companies. political hypothesis states that the companies that are in the limelight incure more expenses than the others and are more willing to disclose lower earnings and apply conservativeness in their financial statements. the notion behind the abovementioned hypothesis is that individuals, groups, politicians, and legislators use financial statements and due to high costs of information they don't adjust accounting earnings arising from accounting changes. in this study we have benefited from five year financial information (1381-1385)of the companies registered in the Tehran's stocks and exchange bourse. The results of research show that there is a negative relationship between size, investment intensity, and conservatism and in contrast level of industry contests, governmental ownership and conservatism are positively related to each other.

This research examines the usefulness of direct method cash flow information; in particular, whether the direct method leads to more accurate predictions of future operating cash flows than the indirect method. The contributions of this research are in tow areas. First, we study whether the direct method is empirically superior to the indirect method in predicting future cash flows. Second, we provide evidences that information about the gross amounts of cash receipts and cash payments is more relevant than information about the net amounts of cash receipts and payments. Our results, based on yearly and pooled models, suggest that direct method information has a higher predictive ability than indirect method information in Tehran stock exchange (TSE) during 1380-1386.

It is believed that more financial reporting quality increases and more reliability standards are used to prepare and present reports, more information risk decrease. Accounting standards are set appropriately to increase accounting information quality and to inform about accounting. In this study, it is examined whether accounting standards setting and their implementation have increased accounting information quality? Earning persistence, earnings response coefficient, accrual quality and explanatory power of valuation models were considered as accounting quality metrics and tested in form of accounting quality models before and after accounting standard implementation. Multi variable regression method was used to test hypothesis. In general, the results of model tests indicated that standard implementation only improved incremental persistence relatively, while in other models, standards couldn’t influence significantly.

This study deals with the empirical investigation of the relationship between five corporate attributes of the listed companies in Tehran Stock Exchange (TSE) and their quality of financial information reporting (QFIR). To determine the quality of financial information reporting, indexes consisting of 155 items based on the Standards of Accounting in Iran and other regulations of disclosure were employed. Using multivariate regression models, their probable relationships with company size, type of industry, type of audit firm, ownership structure and company age was investigated. The results reveal that company size and type of industry had a positive significant relationship with the quality of financial information reporting, while ownership structure had a negative relationship, and the relationship between type of audit firm and the quality of financial information reporting was not statically significant.

The consequences of good earnings quality to mitigate information asymmetry have been the subject of many empirical studies. However, evidence on implications of earnings quality on cash holdings is sparse. This Paper investigates the determinants of corporate cash holdings using panel data for firms listed in Tehran stock exchange from 2001 to 2007 to analyze the effect of financial reporting quality on cash holdings and uses accrual quality as a proxy of financial reporting quality. Our results suggest that cash holdings are negatively affected by financial reporting quality. This finding suggests firms with good accrual quality hold lower cash levels than firms with poor accrual quality. The results also show that cash holdings are positively affected by the growth opportunity, cash flows and liquid assets and negatively affected by size, debt maturity and opportunity cost.

Some researches made in the field of agency problem issue, deal with the role of control systems regarding owners and managers. In this research the relationship between the two control mechanisms, namely the voluntary disclosure (external control mechanism) and outside directors (internal control mechanism), which are reductive of agency problems, has been studied. For this reason, a sample consisting of 239 manufacturing companies listed in Tehran stock exchange (TSE) which have published financial statements and Management discussion and analysis report for 20 March 2007 was taken. Voluntary disclosure has been identified by 71 revised Indexes applied in previous studies. Results show that, the applied model describes 20 percent of changes in the voluntary disclosure that is as about the previous findings. However, there was no significant relationship between voluntary disclosure and outside directors. This study is a movement towards the future researches regarding the voluntary disclosure, and emphasizes the transparency in capital markets.

The purpose of the paper is to investigate the association between the intellectual capital (IC) of firms and their financial return. The paper uses the Pulic framework, has an Asian focus, and draws on data from 16 mutual funds companies listed on the Tehran Stock Exchange. It is an empirical study using partial least squares (PLS) for the data analysis. The paper tests three elements of IC and company financial return. The data sample is restricted to 16 mutual funds companies listed on the Tehran Stock Exchange between the years 1380 and 1385. The findings show that: IC and company financial return are positively related; IC is correlated to future company financial return; the rate of growth of a company's IC is positively related to the company's financial return. IC is an area of interest to numerous parties, such as shareholders, institutional investors, scholars, policymakers and managers. The findings help to embolden modem day managers to better harness and manage IC. The study of IC has undergone a number of stages, from early conscious awareness efforts to classification of IC, and to the search for appropriate measures of IC. This paper builds on the current research on IC and provides empirical evidence on the relevance of IC (as measured by the Pulic model) to the financial return of companies.