Univrsity Of Tehran PressAccounting and Auditing Review2645-802013320061122--18473FAJournal Article19700101This study is first research of earnings management by initial public offering (IPO) firms in Iran country. Using a sample of 30 Iranian IPO’s through 1378-1380, we investigate the pattern of discretionary current accruals (DCA) over time. We find that managers manage their company’s earnings in the first year as a public company but not in the years before the IPO. We also examine the impact of earnings management on the long-run stock price performance of IPO’s. We find a positive relation between the size of the DCA in the first year as a public company and long-run stock price performance over the next 3 years. A number of additional tests support these findings.This study is first research of earnings management by initial public offering (IPO) firms in Iran country. Using a sample of 30 Iranian IPO’s through 1378-1380, we investigate the pattern of discretionary current accruals (DCA) over time. We find that managers manage their company’s earnings in the first year as a public company but not in the years before the IPO. We also examine the impact of earnings management on the long-run stock price performance of IPO’s. We find a positive relation between the size of the DCA in the first year as a public company and long-run stock price performance over the next 3 years. A number of additional tests support these findings.https://acctgrev.ut.ac.ir/article_18473_68570a2c0eb06636444b2fe008c97fcc.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802013320061122--18474FAJournal Article19700101In this research, we examined the relation between earnings quality and corporate governance including managerial share ownership (MSO) and the number of outside directors (DIR).
The sample data used for the research consisted of financial reporting by companies listed on the Tehran Stock Exchange from 1381-1383 (2002-2004). We used a pooled cross-sectional ordinary least squares regression to evaluate the implications of our data on what sought to test above.
In this research, earnings quality is defined as the extent of earnings persistence, the ability of current earnings to predict future earnings. Although earnings are made up of cash flows and accruals, we argue that earnings persistence is a function of accruals. We adopt a total accruals (TACC) measure of earnings quality.
Our result showed that there isn't a relation between TACC and MSO and DIR (5% level). But hypothesis no.1 is supported in that a significant U shaped relationship between MSO and TACC is observed.
Based on the data obtained from companies traded on the Tehran Stock Exchange, we can conclude that corporate governance mechanisms including outside directors and managerial share ownership don’t have high effective on increasing earning quality.In this research, we examined the relation between earnings quality and corporate governance including managerial share ownership (MSO) and the number of outside directors (DIR).
The sample data used for the research consisted of financial reporting by companies listed on the Tehran Stock Exchange from 1381-1383 (2002-2004). We used a pooled cross-sectional ordinary least squares regression to evaluate the implications of our data on what sought to test above.
In this research, earnings quality is defined as the extent of earnings persistence, the ability of current earnings to predict future earnings. Although earnings are made up of cash flows and accruals, we argue that earnings persistence is a function of accruals. We adopt a total accruals (TACC) measure of earnings quality.
Our result showed that there isn't a relation between TACC and MSO and DIR (5% level). But hypothesis no.1 is supported in that a significant U shaped relationship between MSO and TACC is observed.
Based on the data obtained from companies traded on the Tehran Stock Exchange, we can conclude that corporate governance mechanisms including outside directors and managerial share ownership don’t have high effective on increasing earning quality.https://acctgrev.ut.ac.ir/article_18474_bd7b86c145a345ea35f9ebd8e9bfadd9.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802013320061122--18475FAJournal Article19700101Usefulness of accounting information depends on its predicting ability of firms value. Value Relevance of accounting earnings and its components increased predicting power of accounting numbers and enhanced usefulness of accounting information. Hench, this research investigates the value relevance of cash and accruals components of accounting earnings for the firms listed in Tehran Stock Exchange(TSE).
Results of this research shows that cash components of accounting earnings relevant to firm market value. It also shows that prediction ability and explanatory power of cash component is rather than accruals components of earnings.Usefulness of accounting information depends on its predicting ability of firms value. Value Relevance of accounting earnings and its components increased predicting power of accounting numbers and enhanced usefulness of accounting information. Hench, this research investigates the value relevance of cash and accruals components of accounting earnings for the firms listed in Tehran Stock Exchange(TSE).
Results of this research shows that cash components of accounting earnings relevant to firm market value. It also shows that prediction ability and explanatory power of cash component is rather than accruals components of earnings.https://acctgrev.ut.ac.ir/article_18475_d273caf533444e33ed76fe596896380f.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802013320061122--18476FAJournal Article19700101In most of the countries in the world , the model of the statement of cash flows has three sections while it consists of five sections in IRAN. Furthermore , for the first time , the model of four- section with it's reasons have been presented by the authors.
This article presents the results of a post- test with multiple group design conducted to determine the effects of three models of the statement of cash flows on professional investors' judgments. This research shows that the statement of cash flows presentation method has effect on professional investors' judgments.
Also, it became obvious that there is no significant difference between investors' judgments based on three - section and five- section models on one side and judgments based on five – section and four - section models on the other side. Whereas , there is a significant difference between investors' judgments based on four- section and three- section models.In most of the countries in the world , the model of the statement of cash flows has three sections while it consists of five sections in IRAN. Furthermore , for the first time , the model of four- section with it's reasons have been presented by the authors.
This article presents the results of a post- test with multiple group design conducted to determine the effects of three models of the statement of cash flows on professional investors' judgments. This research shows that the statement of cash flows presentation method has effect on professional investors' judgments.
Also, it became obvious that there is no significant difference between investors' judgments based on three - section and five- section models on one side and judgments based on five – section and four - section models on the other side. Whereas , there is a significant difference between investors' judgments based on four- section and three- section models.https://acctgrev.ut.ac.ir/article_18476_9e5ca632089c9b31acc720ede6e77789.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802013320061122--18477FAJournal Article19700101The relationship between accounting variable and systematic risk is one of the most attractive theoretical subjects that more commentary disscusions are present in searching accounting area and finance . it is possible that the results of these investigation can have two important benefits one of them is that : accounting variable with systematic risk of common stockholders are relate and the other this is that : there is a relation between criterias of trade risk and risk of common stockholders . finally; with discovered these relations we can improve disclosure policiy in financial statement. That the better informations had been present about systematic risk for stockholders. This investigation that is describing – correlation type and on base this is that : Is there a relation between accounting variable of growth in net earning and grow in operating earning with systematic risk or not? in the other meaning, are the accounting variable replacement for systematic risk or not ? it means that , how can these variables describe the variables in systematic risk ?
In the way of this goal, 87 accepted companies in TSE had been chosen in sample type, during 1999 – 2003 then the information about independent variables and dependent had been calculated.
For examine the investigation hypothesis, we used from regression- correlation analysis. For to be meaning of models , they also had been examined with used of statistic F test , T test , determination coefficient, correlation coefficient and Durbin- Watson test.
Received results are show that with using the simple regression there is a positive relation between systematic risk with growth in net earning and growth in operating earning with the sure 95%.
These results are emphasis on usefulness of accounting variables for evaluation of systematic risk by investors.The relationship between accounting variable and systematic risk is one of the most attractive theoretical subjects that more commentary disscusions are present in searching accounting area and finance . it is possible that the results of these investigation can have two important benefits one of them is that : accounting variable with systematic risk of common stockholders are relate and the other this is that : there is a relation between criterias of trade risk and risk of common stockholders . finally; with discovered these relations we can improve disclosure policiy in financial statement. That the better informations had been present about systematic risk for stockholders. This investigation that is describing – correlation type and on base this is that : Is there a relation between accounting variable of growth in net earning and grow in operating earning with systematic risk or not? in the other meaning, are the accounting variable replacement for systematic risk or not ? it means that , how can these variables describe the variables in systematic risk ?
In the way of this goal, 87 accepted companies in TSE had been chosen in sample type, during 1999 – 2003 then the information about independent variables and dependent had been calculated.
For examine the investigation hypothesis, we used from regression- correlation analysis. For to be meaning of models , they also had been examined with used of statistic F test , T test , determination coefficient, correlation coefficient and Durbin- Watson test.
Received results are show that with using the simple regression there is a positive relation between systematic risk with growth in net earning and growth in operating earning with the sure 95%.
These results are emphasis on usefulness of accounting variables for evaluation of systematic risk by investors.https://acctgrev.ut.ac.ir/article_18477_5cfb9a1fb2166ab8532e1f2db733887f.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802013320061122--18478FAJournal Article19700101Using several valuation models, this study estimates stocks prices of all companies included in the Dow Jones Industrial, Transportation, and Utility Indexes over several time periods. The estimated values are then compared with actual stock prices to test the accuracy of the models used in the valuation process. The test results show that the estimated stock prices using discounted cash flow, market-value-added, and multiplier methods differ greatly from their actual prices, indicating that valuation have limited application value. The weak performance of valuation models may lead investors and students to become cynical about the valuation theory and discount or discard the fundamental idea behind the intrinsic value calculation.Using several valuation models, this study estimates stocks prices of all companies included in the Dow Jones Industrial, Transportation, and Utility Indexes over several time periods. The estimated values are then compared with actual stock prices to test the accuracy of the models used in the valuation process. The test results show that the estimated stock prices using discounted cash flow, market-value-added, and multiplier methods differ greatly from their actual prices, indicating that valuation have limited application value. The weak performance of valuation models may lead investors and students to become cynical about the valuation theory and discount or discard the fundamental idea behind the intrinsic value calculation.https://acctgrev.ut.ac.ir/article_18478_963d8e96051ffa15a84adade1aa6ce31.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802013320061122--18479FAJournal Article19700101XBRL, the eXtensible Business Reporting Language, is an open standards-based reporting system being built to accommodate the electronic preparation and exchange of business reports around the world. XBRL is all about the electronic tagging of data. It has been compared to the introduction of bar-coding and to the introduction of the ISBN number for books. While financial data is an obvious choice for electronic tagging, all data can be tagged. XBRL is an extension of XML, the eXtensible Markup Language. An extensible language means one that is designed to easily allow the addition of new features at a later date. As might be expected, the rules, or specifications, for these languages need to be managed so as to allow consistency in their development. The goal of XBRL is to develop a standard set of XML-type tags that can be used to create instance documents that can be then presented in a variety of formats. XBRL is not trying to set new accounting standards; it is attempting to standardise the XML-based tags that are used in business reporting so that the business reports prepared by organisations can be more easily compared and collated for regulatory and other purposes.XBRL, the eXtensible Business Reporting Language, is an open standards-based reporting system being built to accommodate the electronic preparation and exchange of business reports around the world. XBRL is all about the electronic tagging of data. It has been compared to the introduction of bar-coding and to the introduction of the ISBN number for books. While financial data is an obvious choice for electronic tagging, all data can be tagged. XBRL is an extension of XML, the eXtensible Markup Language. An extensible language means one that is designed to easily allow the addition of new features at a later date. As might be expected, the rules, or specifications, for these languages need to be managed so as to allow consistency in their development. The goal of XBRL is to develop a standard set of XML-type tags that can be used to create instance documents that can be then presented in a variety of formats. XBRL is not trying to set new accounting standards; it is attempting to standardise the XML-based tags that are used in business reporting so that the business reports prepared by organisations can be more easily compared and collated for regulatory and other purposes.https://acctgrev.ut.ac.ir/article_18479_9d1f212ebae544f9bfb592c9b3007543.pdf