@article { author = {Afshar, Mostafa and Zamani Amugheen, Ramin}, title = {Explaining the Relationship Indices of the Performance Evaluation and Rank Performance with the Growth of the Companies}, journal = {Journal of Accounting Advances}, volume = {6}, number = {1}, pages = {1-28}, year = {2013}, publisher = {}, issn = {2008-9988}, eissn = {2716-9626}, doi = {10.22099/jaa.2013.2254}, abstract = {  Vol. 6, No. 1, 2014, Ser. 66/3     Extended Abstract   Explaining the Relationship Indices of the Performance Evaluation and Rank Performance with the Growth of the Companies   M. Afshar                                          R. Zamani Amugheen Molana Higher Education, Abyek, Qazvin   Introduction        Due tocompetition in the global economy and an increase in public awareness about the financial issues and investment, investment markets have drawn our attention; on the other hand, companies often draw the attention of the investors to measure the production of goods and services with high quality and low price. A number of companies also try to present their information with an unreal and misleading picture of their status in desirable and competitive level to attract investors.  Therefore, performance evaluation of companies with different and suitable criteria and also ranking them are considered as the most important indices and favorable for investors. Performance evaluation with regard to the capital markets development is the most important subject which draws the attention of shareholders, creditors, governments and managers.  Investors are always inclined to the success level of managers in employing the knowledge in their capital. The distributed financial index is the most useful tool for performance and financial situations of the companies and in ranking considering several criteria with distinctive effects by employing models of decision making.  So, various indices are used according to the type of ranking. Therefore, in this article we summarize the amount of effects on performance evaluation of the companies and also their ranking on the growth of the companies.   Research Questions        1- Does proper financial performance develop the companies?        2- Is ranking companies based on performance evaluation indices the related factor for the distinction among companies?   Research Method        The statistical community in this research includes all companies accepted in Tehran Stock Market during the period of 2006-2011. Data was collected as library method. Data related to the theoretical principles was collected from foreign and Persian articles; necessary information to test the hypotheses was obtained with reference to auditing financial statements of the companies and according to activities of the board of directors. In some cases this information was collected via “tadbirpardaz”, “Rahavardnovin” databases and the official website of Tehran Stock Exchange organization. Research method in this study is descriptive and correlative.   Results        The results show that there is a meaningful relationship between indices of financial performance evaluation with their growth. Meanwhile, there is a positive and significant relationship between the overall rank of the companies due to performance evaluation indices and the growth of companies.   Discussion and Conclusion        Each business unit operates within its field of work in such a way that the result of its performance can be examined, evaluated and measured in different ways.  Due to the reason that the performance evaluation has always been one of the most important issues for managers, investors, shareholders, creditors and also one of the tools to determine the financial status of the companies, it is considered as the financial ratio analysis.  In other words, variously distributed financial ratios show important realities in connection with operations and financial situation of a unit.  It should be noted that the financial performances have a significant role in the amount and the manner of growth of the companies and appropriate/inappropriate performance can also cause growth/decline in the companies. Therefore, in the present research we examined the relation of the performance evaluation indices ranking them with the growth of the companies. To do this, information related to 100 companies during financial period 2006-2011 was collected and with the use of multiple regression models, the hypotheses were tested. The results indicate that there is a significant relation between the financial ratios including asset output, rights output of the shares owners, net profit ratio to sell, assets circulation, cash flow ratio, debt ratio to assets, and long term debt ratio to the rights shares owners.  And then we ranked the companies using “Topsis” method. The results of hypothesis 2 indicate the existence of a significant relation between the meaningful ranking performance indices of financial performance and growth of companies; testing 1-2 hypothesis it was shown that the top rank of financial performance improves the companies and also testing hypothesis 2-2 shows that lower rank of financial performance decreases the growth of growth the companies.  In this way it can be said that companies increase the efficiency and effectiveness of their activities to gain high productivity and this helps to rank the companies by revising financial statements and proper financial ratios.  }, keywords = {Keywords: Indices of performance evaluation,Growth,Rank performance,TOPSIS}, title_fa = {تبیین ارتباط شاخص‌های ارزیابی عملکرد و رتبه عملکردی با رشد شرکت‌ها}, abstract_fa = {یکی از مهم‌ترین ابزارهای تعیین نقاط قوت و ضعف عملکرد، رتبه‌بندی شرکت‌ها است. این مهم با بررسی شاخص‌های ارزیابی عملکرد شرکت‌ها مورد تجزیه و تحلیل قرار می‌گیرد. پژوهش حاضر رابطه‌ی شاخص‌های مختلف ارزیابی عملکرد و رتبه‌ی آن‌ها با رشد شرکت‌ها را مورد بررسی قرار داده است. برای رتبه‌بندی شرکت‌ها مبتنی بر شاخص‌های ارزیابی عملکرد از روش «تاپسیس (TOPSIS)» استفاده می‌شود. نمونه‌ی تحقیق شامل ۱۰۰ شرکت پذیرفته شده در بورس اوراق بهادار تهران در دوره زمانی ۱۳۸۵-1390 است که ازطریق غربالگری انتخاب شدند. آزمون فرضیه‌ها از طریق رگرسیون چندگانه با چیدمان دادهای تابلویی صورت پذیرفت. نتایج تحقیق نشان می‌دهد که بین شاخص‌های ارزیابی عملکرد مالی شرکت‌ها با رشد آن‌ها رابطه‌ی معناداری وجود دارد. در ضمن  بین رتبه‌ی کلی شرکت از شاخص‌های ارزیابی عملکرد و رشد شرکت‌ها نیز ارتباط مثبت و معناداری وجود دارد.}, keywords_fa = {}, url = {https://jaa.shirazu.ac.ir/article_2254.html}, eprint = {https://jaa.shirazu.ac.ir/article_2254_0a5b8ce93abd655f1015291c1f4d4f21.pdf} } @article { author = {Setayesh, Mohammad Hossien and Rezaei, Golamreza and Hosseini Rad, Davood}, title = {Extended Abstract The Role of Ownership Structure in the Inventory and Cash Management Practices in the Companies Listed on Tehran Stock Exchange}, journal = {Journal of Accounting Advances}, volume = {6}, number = {1}, pages = {29-62}, year = {2013}, publisher = {}, issn = {2008-9988}, eissn = {2716-9626}, doi = {10.22099/jaa.2013.2255}, abstract = {  Extended Abstract   The Role of Ownership Structure in the Inventory and Cash Management Practices in the Companies Listed on Tehran Stock Exchange     Dr. M. H. Setayesh Shiraz University G. Rezaei Islamic Azad   University  Arsanjan Branch   S. D. Hosseini Rad Graduate Student, Islamic Azad   University  Yasooj Science and Research Branch   Introduction The main goal of this paper is to provide a new empirical assessment of the ownership structure on the inventory and cash holdings of non-financial listed firms in Iran. Our current knowledge about the role of these ownership structures (i.e., institutional ownership, firm’s ownership, managerial ownership and ownership concentration) in Iran is still limited. In the present study, an attempt is made to answer the following question: “Is there a significant relationship between the inventory and cash management practices and ownership structure?” Hence, the main objective of this study is to investigate ownership structure on the inventory and cash management practices which are listed firms in the Tehran Stock Exchange (TSE). Our research identifies two channels through which ownership structure can affect a firm’s inventory policy: the liquidity channel and the control channel. The liquidity channel suggests that the type of ownership structures affects a firm’s liquidity constraints. For example, lenders may be more willing to renew their loans to a firm owned by powerful institutional shareholders. Thus, for a firm, especially a small one with low bargaining power, having institutional investors as blockholders, would clearly diminish its liquidity needs. This, in turn, should induce, on average, a lower inventory level as its need to accumulate relatively easy cashable assets like inventories to hedge liquidity shocks is reduced. The control channel suggests that the control may implement certain types of actions against the remaining shareholders’ interests. These actions generally involve overinvestment to the advantage of main blockholders that, eventually, may affect the steady-state inventory and cash levels.   Research Hypotheses Based on the theoretical literature and the conducted studies, research hypotheses were developed as follows: H1: There is a significant relationship between institutional ownership and the inventory management practices. H2: There is a significant relationship between firm’s ownership and the inventory management practices. H3: There is a significant relationship between managerial ownership and the inventory management practices. H4: There is a significant relationship between ownership concentration and the inventory management practices. H5: There is a significant relationship between institutional ownership and the cash management practices. H6: There is a significant relationship between firm`s ownership and the cash management practices. H7: There is a significant relationship between managerial ownership and the cash management practices. H8: There is a significant relationship between ownership concentration and the cash management practices.   Methods The research methodology is a quantitative research that uses the scientific method and empirical evidence based on hypotheses and research designs previously done. This category research is used when the criteria for measurement data quantitative and statistical techniques are used to derive the results. In this research, data of 67 companies are analyzed for the period of 2004-2009. The related data was collected through observation of Iranian database of Tehran Stock Exchange (Tadbir Pardaz) annual data files and the accompanying notes as found on www.rdis.com. For statistical analysis and to test hypotheses, descriptive statistics (i.e., mean, maximum, minimum and standard deviation) and inferential statistics (i.e., enter multiple linear regression) are used. The collected data was calculated using the Excel software and was analyzed using SPSS-19 and Eviews-7.   Results The results of this research show that there is a reverse relationship between managerial ownership and inventory holding, but there is not any significant relationship between the other ownership structure variables (i.e., institutional ownership, firm ownership and ownership concentration) and inventory holding. In addition, the results also show that there is a reverse relationship between institutional ownership and ownership concentration and cash holding, but there is no significant relationship between the other ownership structure variables (i.e., firm ownership and managerial ownership) and cash holding.   Discussion and Conclusion The goal of this research is to study the effects of ownership structure in the inventory and cash management practices for the companies listed in the TSE. Our findings make new contribution to governance literature to extend our understanding about the role of these ownership structures in Iran. This paper shows the relevance of a firm’s ownership structure on its definition of inventory and cash policy. We find that a firm with managerial ownership as blockholders shows lower average inventory levels. Also, our research shows that a firm with institutional ownership as blockholders and higher ownership concentration shows lower average cash levels. From the above conclusion, we layout following policy implications: the firms should implement changes in the type of ownership structure to institutional ownership as blockholders and increase their ownership concentration in order to improve cash management practices. In addition, the firms should implement changes in the type of ownership structure to managerial ownership as blockholders to improve inventory management practices.  }, keywords = {Keywords: Ownership Structure,Cash Management,Inventory Management}, title_fa = {بررسی نقش ساختار مالکیت بر شیوه‌ی مدیریت وجوه نقد و موجودی های کالای شرکت های پذیرفته شده در بورس اوراق بهادار تهران}, abstract_fa = {هدف این مقاله بررسی آثار ساختار مالکیت بر شیوه‌ی مدیریت وجوه نقد و موجودی­های کالای شرکت­های پذیرفته شده در بورس اوراق بهادار تهران است. جامعه آماری این پژوهش شامل 67 شرکت در بورس اوراق بهادار تهران است که در بازه‌ی زمانی 1383 تا 1389 مورد بررسی قرار گرفته است. از تحلیل آماری رگرسیون خطی چند متغیره برای آزمون فرضیه­های پژوهش استفاده شده است. نتایج آزمون فرضیه­های پژوهش نشان می­دهد که بین مالکیت مدیریتی و میزان نگهداری موجودی­های کالا رابطه‌ی معکوس وجود دارد، اما بین مالکیت نهادی، مالکیت شرکتی و تمرکز مالکیت با میزان نگهداری موجودی­های کالا رابطه‌ی معناداری وجود ندارد. هم‌چنین نتایج پژوهش نشان می­دهد که بین مالکیت نهادی و تمرکز مالکیت با میزان نگهداری وجه نقد رابطه‌ی معکوس وجود دارد، اما بین مالکیت شرکتی و مالکیت مدیریتی با میزان نگهداری وجه نقد رابطه‌ی معناداری وجود ندارد؛ بنابراین می­توان مالکیت مدیریتی را به عنوان یکی از عوامل مؤثر در بهبود شیوه‌ی مدیریت موجودی کالا و مالکیت نهادی و تمرکز مالکیت را به عنوان عوامل اثرگذار بر بهبود شیوه‌ی مدیریت وجوه نقد شرکت دانست.}, keywords_fa = {: ساختار مالکیت,مدیریت وجه نقد,مدیریت موجودی کالا}, url = {https://jaa.shirazu.ac.ir/article_2255.html}, eprint = {https://jaa.shirazu.ac.ir/article_2255_4b3e92b5b87df3b8d2394bd4a99c0bd2.pdf} } @article { author = {Fakhari, Hossien and KashaniPour, Mohammad and Rajabbeyki, Mohammad Ali}, title = {The Monitoring Role of Ownership Structure and Debt Policy on Controlling Agency Problem of Free Cash Flow of Companies Listed in the Tehran Stock exchange (TSE)}, journal = {Journal of Accounting Advances}, volume = {6}, number = {1}, pages = {63-90}, year = {2014}, publisher = {}, issn = {2008-9988}, eissn = {2716-9626}, doi = {10.22099/jaa.2014.2257}, abstract = {  Journal of Accounting Advances (J.A.A) Vol. 6, No. 1, 2014, Ser. 66/3     Extended Abstract   The Monitoring Role of Ownership Structure and Debt Policy on Controlling Agency Problem of Free Cash Flow of Companies  Listed in the Tehran Stock exchange (TSE)              Dr. H. Fakhari                            Dr. M. Kashani Pour              University of Mazandaran             University of Tehran-Qom Collage M. A. Rajabbeyki University of Mazandaran Introduction        The agency problem is one of the controversial subjects in accounting and finance literature. Also the existence of free cash flow (FCF) is one of the important elements in the occurrence of agency costs, because conflict of interest between manager and stockholder causes managers to use FCF in their own interest. Debt policy and ownership structure can reduce agency cost of FCF. Jensen (1986) cites debt Policy to reduce agency cost in two aspects; the first aspect is related to pressure of debt contract. Another aspect is related to asymmetric information between manager and creditor causing asset substitution, adverse selection and ethical hazards. On other hand, ownership structure as one of the corporate governance mechanisms can reduce agency costs of FCF, since a company with good governance can direct activities of the company on a good course, and by good governance decrease the agency cost of all contracts of the company with the other parties. In this research we use proxies for measuring ownership structure which include ownership concentration, managerial ownership, and institutional ownership.        In spite of a large amount of research in other countries about agency cost of FCF, there is not enough research in an emerging market such as Iran. So this research investigates simultaneous relationship between FCF and debt policy and ownership structure. We hope our results will be useful for standard sitters and exchange market policy makers to establish several standards and regulations about voluntary disclosure of FCF. Finally the questions: is there simultaneous relationship between FCF and leverage? And what are the impacts of ownership structure on this relationship?   Hypotheses Our hypotheses following the preceding literature are: H1: There is a simultaneous relationship between FCF and debt policy. H2: Ownership concentration affects simultaneous relationship between FCF and debt policy. H3: Managerial ownership affects simultaneous relationship between FCF and debt policy. H4: Institutional ownership affects simultaneous relationship between FCF and debt policy.   Method        We use panel data analysis method by estimating three stage least square model on the basis of a sample of 103 non-financial companies listed in Tehran Stock Exchange for the period 2006-2011. Simultaneous Model is used when several dependent variables are interacting with each other; in such a situation it is required to define a system of equation. Our variables include FCF, lev and ownership structure of which ownership structure includes ownership concentration, managerial ownership, and institutional ownership. In addition to the above main variable we consider state ownership, firm size, tangible assets, profitability, tax, growth opportunity and risk which have a fixed effect on our model. Our simultaneous equations are: FCFi, t = α0 + α1 Leveragei, t + α2 Conci, t + α3 Mani, t +α4 Insti, t + α5 Statei, t + α6 Sizei, t + ε1i, t                                                                                                                                             (1) Leveragei, t = β0 + β1FCF i, t + β2 Tangi, t + β3 Taxi,t + β4 Growthi,t + β5 Sizei,t + β6 Profiti,t + β7 Riskit, + ε2i                                                                                 (2)   Discussion and conclusion        The main purpose of our study is an investigation of simultaneous relationship between free cash flow and debt policy and also the impact of ownership structure on this relationship. Our research is based on the theoretical idea that there is interest of conflict and asymmetric information between managers and other stakeholders, and debt policy and ownership structure can reduce agency costs of company. Our findings show that firms with high leverage have lower FCF; thus there is a negative relationship between FCF and debt policy. Also, ownership concentration has a negative relationship with FCF; in spite of expectations there is a positive relationship between managerial ownership and institutional ownership.        Our findings are consistent with other research such as those of Agostinho and Prudencio (2010) and Fatma and Chichti (2011) about the relationship between FCF and leverage; also with Driffield et al. (2007) about impact of ownership concentration on FCF. Additionally our findings confirm the results of Fleming et al. (2005) and Mcknight and Weir (2009) and Fatma and Chichti (2011) about the effect of managerial ownership on FCF. However, they don’t confirm the results of Darren (2010) about the effect of institutional ownership on FCF. Our findings contribute to literature of FCF and are useful for standard sitter and exchange market policy maker.   Keywords: Free Cash Flow, Debt Policy, ownership Structure,        Simultaneo us Model  }, keywords = {Keywords: free cash flow,Debt Policy,Ownership structure}, title_fa = {بررسی نقش نظارتی ساختار مالکیت و خط مشی بدهی بر کنترل مشکلات نمایندگی ناشی از جریان‌های نقدی آزاد شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران}, abstract_fa = {علاقه‌مندی سرمایه‌گذاران و اعتباردهندگان در تصمیم‌گیری مربوط به سرمایه‌گذاری و اعتباردهی در شرکت‌هایی با جریان نقدی آزاد بالا بیانگر اهمیت جریان نقدی آزاد به عنوان یکی از معیارهای ارزیابی عملکرد شرکت‌ها است. جریان نقدی آزاد بیانگر وجه نقدی است که مدیران پس از صرف  مخارج لازم برای نگهداری یا توسعه دارایی‌ها در اختیار دارند، از سوی دیگر انتظار می‌رود افزایش جریان نقدی آزاد عامل مشوقی در بروز رفتارهای فرصت‌طلبانه مدیران و افزایش مشکلات نمایندگی باشد. در این تحقیق کارآیی ساختار مالکیت و خط‌مشی بدهی به عنوان مکانیزم‌هایی برای کاهش مشکلات نمایندگی جریان‌های نقدی آزاد مورد بررسی قرار می‌گیرد. بر این اساس، در این تحقیق ارتباط متقابل بین جریان نقدی آزاد، خط مشی بدهی و ساختار مالکیت در 106 شرکت پذیرفته شده در بورس اوراق بهادار تهران در دوره زمانی 1385 تا 1390 به روش حداقل مربعات سه مرحله‌ای (3SLS) مورد تحلیل قرار گرفته است. یافته‌های ما نشان می‌دهد که سطح جریان نقدی آزاد با خط مشی بدهی و تمرکز مالکیت رابطه‌ی منفی و معناداری داشته اما بر خلاف پیش بینی‌ها مالکیت نهادی و مالکیت مدیران با سطح جریان نقدی آزاد رابطه‌ی مثبت و معناداری دارد. این یافته‌ها می‌تواند برای استانداردگذاران حسابداری از جهت ارائه‌ی اطلاعات داوطلبانه و هم‌چنین برای سیاست‌گذاران بورس در جهت الزام شرکت‌ها به افشاء جریان‌های نقدی آزاد مفید باشد.}, keywords_fa = {جریان نقدی آزاد,خط مشی بدهی,ساختار مالکیت,تئوری نمایندگی,معادلات هم‌زمان}, url = {https://jaa.shirazu.ac.ir/article_2257.html}, eprint = {https://jaa.shirazu.ac.ir/article_2257_806738517fcfca88dd0b8a04b2fa005e.pdf} } @article { author = {Forughi, Dariush and Matin Nezhad, Roya}, title = {Effect of Characteristics of Firms on Calculated Expected Return of Composite Implied Cost of Capital (CICC)}, journal = {Journal of Accounting Advances}, volume = {6}, number = {1}, pages = {91-114}, year = {2014}, publisher = {}, issn = {2008-9988}, eissn = {2716-9626}, doi = {10.22099/jaa.2014.2258}, abstract = {  Journal of Accounting Advances (J.A.A) Vol. 6, No. 1, 2014, Ser. 66/3     Extended Abstract   Effect of Characteristics of Firms on Calculated Expected Return of Composite Implied Cost of Capital (CICC)   Dr. D. Forughi                        R. Matin Nezhad University of Isfahan   Introduction        One of the important factors in making investment decisions is paying attention to return on investment. Thus financial researchers are always looking for models to predict return on investment for future periods with greater confidence. In this regard, we can refer to Capital Asset Pricing Model (CAPM), one-factor models and multifactorial models. Until now, all of these models have faced much criticism and lost their popularity. So activists in the stock market need a better model to estimate the expected rate of return on equity. Blume and Friend first cited that realized returns are not a suitable index of expected returns. Recently following this view, Hu et al. (2012) provided a new method for calculating the expected rate of returns, that is, Composite Implied Cost of Capital (CICC). Method of CICC needs to forecast earnings and used earning forecast model proposed by Hu et al. (2012), to protect results from biased management. This method has a nonlinear structure and a long-term look to returns on investments. Finally this paper studies the relationship between expected returns of method CICC with firm characteristics.   Research Questions or hypothesis        The main purpose of this study is calculate the expected rate of returns for shareholders based on the method of Composite Implied Cost of Capital (CICC) and also reviews the effect of firm characteristics (Size, book-to-market, asset growth rate and financial leverage) on return mentioned. Hypothesis states firm characteristics affect expected rate of return of CICC method significantly.   Methods         The methodological approach is based on models suggested by Hou et al. The model is estimated using data of 80 companies listed in Tehran Stock Exchange during the period 1380 to 1390. Eviews 7 and Excel software and also simulated models of the expected rate of returns, and the Java programming language were used to analyze the data.   Results        The empirical evidence shows the relationship between size, book-to-market and financial leverage with expected returns of method CICC is positive and significant. Also the relationship between assets growth rate and returns mentioned is negative and significant.    Conclusion        Findings suggest expected returns rate calculated through CICC is related significantly to characteristics of firm and means expected returns rate of method CICC is the relevant expected returns rate.      }, keywords = {Keywords: Implied cost of capital,expected rate of return of method CICC,asset growth rate,financial leverage}, title_fa = {تأثیر ویژگی‌های شرکت بر بازده مورد انتظار محاسبه شده به روش هزینه‌ی سرمایه‌ی ضمنی ترکیبی (CICC)}, abstract_fa = {با توجه به نارسایی مدل‌های سنتی در زمینه‌ی تخمین نرخ بازده مورد انتظار سهام‌داران، در سال‌های اخیر مدل جدیدی برای محاسبه‌ی نرخ بازده مذکور مطرح شده است. در این راستا هدف اصلی پژوهش حاضر، محاسبه‌ی نرخ بازده مورد انتظار سهام‌داران بر مبنای روش هزینه‌ی سرمایه‌ی ضمنی ترکیبی (CICC) و هم‌چنین بررسی تأثیر ویژگی‌های شرکت (اندازه، ارزش دفتری به ارزش بازار، نرخ رشد دارایی‌ها و اهرم مالی) بر بازده مذکور است. نمونه‌ی آماری شامل 80 شرکت پذیرفته شده در بورس اوراق بهادار تهران، در بازه زمانی 1380 تا 1390 است.‌ در این پژوهش برای آزمون فرضیه‌ها از مدل‌های رگرسیون چندگانه بر اساس داده‌های ترکیبی استفاده شده است. یافته‌های پژوهش نشان می‌دهد که اندازه، ارزش دفتری به ارزش بازار و اهرم مالی بر بازده مورد انتظار به روش CICC تأثیر مثبت و معنادار دارد. هم‌چنین نرخ رشد دارایی‌ها بر بازده مذکور تأثیر منفی و معناداری دارد.}, keywords_fa = {هزینه‌ی سرمایه‌ی ضمنی,نرخ بازده مورد انتظار سهام به روش CICC,رشد دارایی‌ها,اهرم مالی}, url = {https://jaa.shirazu.ac.ir/article_2258.html}, eprint = {https://jaa.shirazu.ac.ir/article_2258_c4be70ad61923240522e45993e0befdb.pdf} } @article { author = {Mojtahedzadeh, Vida and Esna Ashari, Hamideh}, title = {The Relationship between privatization and Corporate Governance Mechanisms with Speed of Corporate Financial Reporting and Financial Performance}, journal = {Journal of Accounting Advances}, volume = {6}, number = {1}, pages = {115-140}, year = {2013}, publisher = {}, issn = {2008-9988}, eissn = {2716-9626}, doi = {10.22099/jaa.2013.2259}, abstract = {  Journal of Accounting Advances (J.A.A) Vol. 6, No. 1, 2014, Ser. 66/3     Extended Abstract   The Relationship between privatization and Corporate Governance Mechanisms with Speed of Corporate Financial Reporting and Financial Performance   Dr. V. Mojtahedzadeh H. Esna Ashari Alzahra University   Introduction        Privatization as a method for reallocation of assets and functions of public companies has an important role in structural reforming in developed and developing countries. It certainly cannot be stated that privatization in developing markets improves financial markets as the minority rights are not protected in such markets. Information asymmetry results in inefficiency of the markets and block trading usually takes place which removes some needs to financial markets.        Privatization increases the importance of corporate governance mechanisms in previously public companies. Corporate governance compels management to make decisions in order to maximize shareholders’ wealth with respect to the rights of other beneficiaries.   Research Hypotheses        The following hypotheses were formulated for the research based on the literature:        First hypothesis: Financial reporting speed of previously public companies increases after privatization.        Second hypothesis: Financial performance of previously public companies increases after privatization.        Third hypothesis: There is a significant relationship between corporate governance mechanisms and changes in legal status and the speed of financial reporting in previously public companies.        Fourth hypotheses: There is a significant relationship between corporate governance mechanisms and changes in legal status and financial performance of previously public companies.   Research Method        This Research is applied because of its objective, and descriptive-correlative because of its method.   Model 1 The following model was used to test the first hypothesis (Al-akra et al., 2010): Lagit= β0+ β1PRIVit+ β2Sizeit +β3 Growthit+εit Lagit: The  difference between the year end's date and general meeting of shareholders' Date for resolution financial statements that is called Reporting Lag as well (Mehrani et al. , 1389; Mahdavi & Jamalianpour, 1389). PRIVit: = A score of one for the year  in which more than 30 percent of government shares have been offered and for the subsequent years and a score of zero if otherwise (Al-akra et al., 2010; Danesh Jafari & Barghi Oskooei, 1389). Size = Natural logarithm of the book value of total assets at year end which is a control variable. Growth = The percentage of changes in book value of total assets at year end, compared to the previous fiscal year (Kordlar & Aarabi, 2010), which is a control variable.   Model2 The following model was used to test the second hypothesis (Al-akra et al. , 2010): FPit= β0+ β1PRIVit+ β2Sizeit +β3 Growthit+εit FPit: Combination of five proxies include returns on assets, returns on equity, Tobin's Q ratio, annual stock return and market value added (Kumar & Goel, 2000; Ghaemi & Shahriyari, 1388). Model3 The following model was used to test the third hypothesis (Al-akra et al. , 2010): Lagit=α0+α1PRIVit+β1Owconit+β2PRIVit*Owconit+β3BINit+β4PRIVit*BINit+β5Mowit+β6 PRIVit*Mowit+β7Iowit+β8PRIVit*Iowit+β9AuDit+β10PRIVit *AuDit + β11Sizeit +β12 Growthit+ β13 CHlowit + β14CHlowit* PRIVit +εit Owcon: Percentage of free float shares (Bugshan, 2005; Ginglinger & Hamon , 2007). BIN: The ratio of non-executive members of the board of directors to total members (Bugshan, 2005; Setayesh et al. , 1388). Mow: Percentage of shares held by board members (Bugshan, 2005; Mojtahedzadeh, 2011). Iow: Percentage of shares held by institutional shareholders (Al-akra et al, 2010). AUD: A two dimensional variable, including the probability of selecting an audit organization (Big Audit Organization) as a criterion for quality (Success = one) and the probability of the selection of other audit organizations (Failure = zero) (Al-akra et al., 2010). Chlow: A two dimensional variable as the control variable and was given the value of one for the year 2007 and subsequent years (following the approval of corporate governance mechanisms), and a value of zero for all other years (Al-akra et al., 2010).   Model4 The following model was used to test the fourth hypothesis (Al-akra et al. , 2010): FPit=α0+α1PRIVit+β1Owconit+β2PRIVit*Owconit+β3BINit+β4PRIVit*BINit+β5Mowit+β6 PRIVit*Mowit+β7Iowit+β8PRIVit*Iowit+β9AuDit+β10PRIVit*AuDit+β11Sizeit+ β12Growthit+ β13CHlowit + β14CHlowit* PRIVit +εit   Results of Testing the Hypotheses First Hypothesis: Considering the insignificant level of                          coefficient, there is not any significant relationship between financial reporting speed and privatization. Therefore, the first hypothesis is not approved. Second Hypothesis: Considering the negative and significant level of  coefficient, there is a negative and significant relationship between financial performance and privatization .Therefore, second hypothesis is approved. Third Hypothesis: Due to obviate co-linearity between independent variables, the sample was segregated based on privatization variable and the following model was used based on model3 in each sample: Lagit= β0 +β1Owconit+ β2BINit+ β3 Mowit+ β4Iowit+ β5AuDit+ β6Sizeit +β7 Growthit+ β8 CHlowit +εit Considering the insignificant level of through , and  coefficients before and after privatization and negative and significant level of  after privatization, it can be concluded that there is a positive and significant relationship between speed of financial reporting and institutional ownership in previously public companies. Therefore, the third hypothesis is approved only for one corporate governance mechanism. Fourth Hypothesis: Due to obviate co-linearity between independent variables, the sample was segregated based on privatization variable and the following model was used based on model4 in each sample: FPit= β0+ β1Owconit+ β2BINit+ β3Mowit+ β4Iowit+ β5AuDit+ β6Sizeit+ β7Growthit+ β8CHlowit + εit Considering insignificant level of , and  coefficients before and after privatization, positive and significant level of  coefficient before privatization, positive and significant level of coefficient after privatization and significant level of  coefficient before and after privatization and decline in it after comparison to before privatization, it can be concluded that a positive and significant relationship exists between financial performance and independence of board of directors and audit quality in previously public companies and a negative and significant relationship between financial performance and ownership concentration. Therefore, the third hypothesis is approved for three corporate governance mechanisms.   Conclusion and suggestions Independence of board of directors, institutional ownership and audit quality as three corporate governance mechanisms for monitoring have positive effects on corporate governance strength. Capital market has an important role for gathering and managing public capitals if it can create confidence in investors for earning suitable returns by protecting them. Therefore, implementation of appropriate internal and external corporate governance mechanisms is an important subject in capital markets. Then, it is recommended to TSE to take required actions in this field through preparation and confirmation instruction codes.  }, keywords = {Keywords: Corporate Governance,Speed of Corporate Financial Reporting,Financial Performance,privatization}, title_fa = {رابطه‌ی خصوصی سازی و ساز و کارهای نظام راهبری شرکتی با سرعت گزارشگری و عملکرد مالی}, abstract_fa = {در این تحقیق، سرعت گزارشگری و عملکرد مالی بنگاه‌هایی را که در گذشته دولتی بودند، قبل و بعد از خصوصی‌سازی و رابطه‌ی آن با ساز وکارهای نظام راهبری شرکتی و تغییر بستر قانونی بررسی شد. ساز وکارهای نظام راهبری شرکتی با استفاده از معیارهای تمرکز مالکیت، استقلال هیأت مدیره، مالکیت مدیریتی، مالکیت نهادی و نوع(کیفیت) حسابرس عملکرد مالی با استفاده از ترکیب پنج معیار و سرعت گزارشگری با در نظر گرفتن تاریخ تصویب صورت‌های مالی در مجمع عمومی سالانه‌ی صاحبان سهام عادی اندازه‌گیری شد. در این راستا اطلاعات 38 شرکت پذیرفته شده در بورس اوراق بهادار تهران برای دوره 1382-1389 با در نظر گرفتن برخی ویژگی‌ها مورد بررسی قرار گرفت. نتایج نشان داد عملکرد مالی چنین بنگاه‌هایی بعد از خصوصی‌سازی به گونه‌ای معنادار افزایش یافته است و با ساز و کارهای تمرکز مالکیت، استقلال هیات مدیره و نوع(کیفیت) حسابرس رابطه‌ی معناداری دارد. سرعت گزارشگری مالی پس از خصوصی‌سازی نیز گرچه بهبود یافته است، اما معنادار نیست و مالکیت نهادی رابطه‌ی معناداری با بهبود آن دارد.}, keywords_fa = {نظام راهبری شرکتی,سرعت گزارشگری مالی,عملکرد مالی,خصوصی سازی,تغییر بستر قانونی}, url = {https://jaa.shirazu.ac.ir/article_2259.html}, eprint = {https://jaa.shirazu.ac.ir/article_2259_b26edd311ba450bb05682a1464d45b34.pdf} } @article { author = {Moradi, Javad and Rostami, Raheleh and Zare, Reza}, title = {Recognizing Risk Factors Affecting Fraud Probability in Financial Reporting from Auditors' Viewpoint and Its Impact on Firms' Performance}, journal = {Journal of Accounting Advances}, volume = {6}, number = {1}, pages = {141-173}, year = {2014}, publisher = {}, issn = {2008-9988}, eissn = {2716-9626}, doi = {10.22099/jaa.2014.2261}, abstract = {  Journal of Accounting Advances (J.A.A) Vol. 6, No. 1, 2014, Ser. 66/3   Extended Abstract   Recognizing Risk Factors Affecting Fraud Probability in Financial Reporting from Auditors' Viewpoint and Its Impact on Firms' Performance   Dr. J. Moradi Shiraz University R. Rostami         R. Zare Islamic Azad University, Marvdasht Branch   Introduction        There has been a significant increase of fraud in financial reporting recent years. The occurrence of financial crisis caused by some firms such as Enron, Global Crossing and World Com, the issue of fraud in financial statements has become more important. Today the regulators pay more attention to accounting and management careers to prevent frauds in financial statements.        Altering the financial statements includes changing its components by presenting unreal assets, sales, profit or debts, costs and losses. In cases where there is a significant alteration in the financial statements so that its components is not faithfully represented, it is considered as a fraud. Fraud is a deliberate alteration of financial statements by the management in order to mislead the investors and creditors. Wallace (1995) considers frauds as previously planned schemes in order to mislead others which can be done through fake documents. Although there have been several studies considering fraud detection in financial statements in foreign countries, this issue has not been given much attention in Iran. The issue of fraudulent financial statements is of great importance in Iran. The increase in the accepted firms in TSE which are publishing securities in order to attract financial resources, efforts in order to decrease tax, etc. are the reasons for its importance. The objective of the study is, on one hand, identifying effective factors on fraud use based on the auditors’ perceptions, and on the other hand, this study tries to determine risk indicators in the firms accepted in TSE and to examine their effects on the performance of the firms. It should be noted that in order to achieve the objectives of the study, the research hypotheses were divided into two groups. By presenting the questionnaires and the results of the study, the researchers hope to help auditors to get familiar with risk factors and to detect fraud to some extent, or in other words, this study attempts to draw auditors' attention to the possibility of frauds.   Research Hypotheses      The Research hypotheses are categorized and presented in two groups. The first one is to examine and identify the risk factors influencing fraud from auditors’ viewpoint. The second one examines the relation between the fraud risk index and firms' performance by extracting the fraud risk index for the selected firms. The hypotheses are as follows: Hypothesis 1a: There is a significant relationship between risk factors related to the management characteristics and influence with the probability of fraud. Hypothesis 2a: There is a significant relationship between risk factors related to following the management in internal supervision and enforceable standards with the probability of fraud. Hypothesis 3a: There is a significant relationship between risk factors concerning the market and industry status of the firm with the probability of fraud. Hypothesis 4a: there is a significant relationship between risk factors concerning operational characteristics, the company’s cash holdings and financial stability with the probability of fraud.        The effect of the fraud risk level (probability of fraud) on firms' performance is examined by the following hypotheses (second group of hypotheses): Hypothesis 2-1: There is a significant relationship between fraud risk index and firm performance. Hypothesis 2-2: There is a significant difference between firms' performance regarding their fraud risk level. Where the firm performance is calculated by four substituted variables: Return on Assets (ROA), Operational Cash Flow Ratio, Stock Market Return and Return on Equity.   Methodology        The method used in the first part is descriptive–survey based on the field studies and the data gathered by questionnaires are analyzed. In the second part, the companies which had already completed the questionnaires are assessed by a regression model and correlation analysis. In this study, the One-way ANOVA and Correlation Analysis were used to test the hypotheses.   Results        The findings show that the fraud risk has a significant relation with the management qualities, management following internal controls and enforceable standards, risk factors related to the market and industry conditions, operational features, company liquidity and fiscal stability; and in the second group the fraud risk is significantly related to the firm's performance.         }, keywords = {Keywords: Fraud Risk Index,Risk Factors,Internal Controls,Performance Measures}, title_fa = {شناسایی عوامل خطر مؤثر بر احتمال وقوع تقلب در گزارشگری مالی از دید حسابرسان و بررسی تأثیر آن‌ها بر عملکرد مالی شرکت}, abstract_fa = {هدف این پژوهش، شناسایی عوامل مؤثر بر احتمال وقوع تقلب در گزارشگری صورت­های مالی از دید حسابرسان و مدیران است. تحقیق حاضر به لحاظ هدف، کاربردی و روش تحقیق مورد استفاده، توصیفی- پیمایشی است. جامعه‌ی آماری پژوهش، حسابرسان مستقل مؤسسه­های حسابرسی عضو جامعه حسابداران رسمی و مدیران مالی شرکت­های پذیرفته شده در بورس اوراق بهادار تهران هستند. به منظور آزمون فرضیه های تحقیق از آزمون تحلیل واریانس یک طرفه استفاده شده و ارزیابی عملکرد شرکت ها نیز برای سال های 1387-1389 با استفاده از مدل های رگرسیونی و به کمک تحلیل همبستگی صورت گرفته است. یافته­های پژوهش حاکی از آن است که بین ویژگی­های مدیریت، تبعیت مدیریت از کنترل­های داخلی و استاندارد­های لازم الاجرا، عوامل خطر مرتبط با شرایط بازار و صنعت، ویژگی­های عملیاتی، نقدینگی و ثبات مالی با احتـمال وقوع تقلب رابطـه‌ی معنـاداری وجـود دارد. هم‌چنین نتایج حاکی از وجود رابطه‌ی معنادار بین عملکـرد شـرکت (متغیرهای نرخ بازده دارایی­ها، جریان­های نقدی عملیاتی، بازده سهام و بازده شرکت) با ریسک تقلب است.}, keywords_fa = {: شاخص ریسک تقلب,عوامل ریسک,کنترل‌های داخلی,معیارهای سنجش عملکرد}, url = {https://jaa.shirazu.ac.ir/article_2261.html}, eprint = {https://jaa.shirazu.ac.ir/article_2261_f2e85337de40723ad848aac6b75ab846.pdf} } @article { author = {Hashemi, Seyed Abbass and Moradi, Mehdi}, title = {Examining the Importance of Achieving Last Year’s Earnings Threshold: An Investor’s Perception}, journal = {Journal of Accounting Advances}, volume = {6}, number = {1}, pages = {175-194}, year = {2014}, publisher = {}, issn = {2008-9988}, eissn = {2716-9626}, doi = {10.22099/jaa.2014.2262}, abstract = {  Journal of Accounting Advances (J.A.A) Vol. 6, No. 1, 2014, Ser. 66/3     Extended Abstract   Examining the Importance of Achieving Last Year’s Earnings Threshold: An Investor’s Perception   Dr. S. A. Hashemi              M. Moradi University of Isfahan   Introduction        Given the importance of earnings, it is no surprise that management has a vital interest in how they are reported or wanted to manage earnings. Dechow and Skinner (2000) recommend that researchers consider management’s capital market incentives to meet or beat simple earnings benchmarks, consisting of the following:         (1) to avoid losses, that is, to report earnings that are above zero;        (2) to avoid earnings decreases, that is, to make the earnings in the corresponding quarter of previous year; and        (3) to avoid negative earnings surprises, that is, to report earnings that meet or beat expectations. The main purpose of this paper is investigating the importance of achieving last year’s earnings threshold.   Research Question        Prior research provides evidence that meeting (or beating) the forecasted earnings results in a differential market response compared to missing the forecast (e.g., Sajadi, 1998; Khani, 2007). This paper extends prior research by examining whether there is a market effect for meeting or missing unexpected last year’s earnings thresholds while controlling the effects of meeting or missing the forecasted earnings.     Methods        To devise a proper test to see whether the market prices last year earnings threshold, it is important to identify the point at which the market should assign value for meeting or missing the threshold. For the vast majority of firms, reporting earnings above or below earnings increase threshold is not a surprise to the market at the time of the earnings announcement. Accordingly, two instances in which a firm’s announced earnings involve unexpectedly meeting or missing an earnings increase threshold after taking into consideration the effect of management forecasts,        1) Unexpected increase: firms that were forecasted to have a decrease in earnings that report an increase in earnings (UINCR).        2) Unexpected decrease; firms that were forecasted to have an increase in earnings that report a decrease in earnings (UDECR). And four additional classifications for the expected thresholds consider:        1) Expected increase with positive earnings forecast errors; firms that were forecasted to have an increase in earnings that report an increase in earnings (EINCRFE+). For these firms actual earnings is greater than forecasted earnings.        2) Expected increase with negative earnings forecast errors; firms that were forecasted to have an increase in earnings that report an increase in earnings (EINCRFE-). For these firms forecasted earnings is greater than actual earnings.        3) Expected decrease with positive earnings forecast errors; firms that were forecasted to have a decrease in earnings that report a decrease in earnings (EDECRFE+). For these firms actual earnings is greater than forecasted earnings.        4) Expected decrease with negative earnings forecast errors; firms that were forecasted to have a decrease in earnings that report a decrease in earnings (EDECRFE-). For these firms forecasted earnings is greater than actual earnings.        This paper examines whether there is an incremental effect for unexpectedly meeting the increase threshold for firms already reporting a positive forecast error (UINCR). This can be examined by comparing the estimated coefficients of UINCR firms with those of EINCRFE+ and EDECRFE+ firms. Evidence of an incremental threshold effect for meeting the increase threshold would be found if the intercept or slope coefficient of UINCR firms is incrementally greater than those of EINCRFE+ and EDECRFE+ firms. A similar analysis is performed for the other group (UDECR, EINCRFE-, EDECRFE-). For data analysis, panel data were used and a sample consisting of 75 companies listed in Tehran Stock Exchange during the years 2008 to 2011 were selected.   Results        Results showed earnings response coefficient (ERC) for UINCR firms is more positive than ERC for EDECRFE+ but less positive than ERC for EINCRFE+ firms. This result is not consistent with a market reward for meeting the earnings increase threshold.   For missing the earnings increase threshold, the ERC for UDECR firms is greater than the ERC for EDECRFE− firms but less positive than ERC for EINCRFE− firms, respectively. Once again, the results do not provide any evidence of an incremental threshold effect.   Discussion and conclusion        The results show that last year’s earnings threshold as one of the reference points is not considered in the decisions of investors. In other words, this research doesn’t support market-based incentives as a driver of earnings management on capital markets.    }, keywords = {Keywords: Earnings Threshold,Earnings Management,Prospect Theory,Reference Point}, title_fa = {بررسی اهمیت تحقق آستانه ی سود سال قبل از دیدگاه سرمایه گذاران}, abstract_fa = {این مقاله به بررسی اهمیت تحقق آستانه­ی سود سال قبل از دیدگاه سرمایه­گذاران در زمان اعلام سود می­پردازد. هدف اصلی این مقاله پاسخ به این پرسش است که آیا بر مبنای نظریه­ی انتظارات، می­توان آستانه­ی سود سال قبل را به عنوان یکی از نقاط مرجع سرمایه­گذاران در نظر گرفت. برای آزمون فرضیه­ها، نمونه­ای متشکل از 75 شرکت از بین شرکت­های پذیرفته شده در بورس اوراق بهادار تهران در سال­های 1386 تا 1389 انتخاب و برای تجزیه و تحلیل داده­ها، از مدل رگرسیون چندگانه به روش داده­های ترکیبی استفاده شد. نتایج آزمون فرضیه­ی اول پژوهش نشان داد آستانه­ی سود پیش­بینی شده با بازده غیرعادی سهام رابطه­ی مستقیم دارد. نتایج آزمون فرضیه­ی دوم پژوهش نشان داد با کنترل سود پیش­بینی شده، آستانه­ی سود سال قبل به عنوان یکی از نقاط مرجع سرمایه‌گذاران در تصمیم­های سرمایه­گذاری مطرح نیست. به عبارت دیگر این پژوهش انگیزه­های مبتنی بر بازار سرمایه، به عنوان محرک مدیریت سود پیرامون دستیابی به سود سال قبل را تأیید نمی­کند.}, keywords_fa = {آستانه ی سود,مدیریت سود,نظریه ی انتظارات,نقطه ی مرجع}, url = {https://jaa.shirazu.ac.ir/article_2262.html}, eprint = {https://jaa.shirazu.ac.ir/article_2262_bdb2bd1efadb77badfc1a570382bff60.pdf} }