Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 2 2012 07 22 A Survey of the Relationship between Corporate Governance with Created Shareholder Value (CSV) and Economic Value Added (EVA) A Survey of the Relationship between Corporate Governance with Created Shareholder Value (CSV) and Economic Value Added (EVA) 1 16 29196 10.22059/acctgrev.2012.29196 FA Rasool Baradaran Hassanzadeh 0000-0002-2161-0321 Younes Badavar Nahandi Ghader Hossein Babaei 0000-0003-2694-7326 Journal Article Subject of this paper is surveying of the relationship between some of the corporate governance mechanisms and created shareholder value (CSV) and economic value added (EVA). In this study, the created shareholders value measured by using Fernandez (2001) model and Economic value added measured by using Stewart (1982) model. The goal of this research is application and the type of research methodology is correlation. This study statistic population is firms listed in Tehran Stock Exchange (TSE), has been chosen during the years 2006 to 2010. To test hypotheses as classified multivariate regression advantage is backward elimination. The results show that the eight corporate governance mechanisms studied in this research, four mechanisms (government influence and government property, the amount of institutional shareholder ownership, capital structure and amount of free float) are related with created shareholders value. Also The eight corporate governance mechanisms of reviewed in this study 3 mechanisms (government influence and government property, institutional shareholder ownership rate and the amount of free float) are related with economic value added. Subject of this paper is surveying of the relationship between some of the corporate governance mechanisms and created shareholder value (CSV) and economic value added (EVA). In this study, the created shareholders value measured by using Fernandez (2001) model and Economic value added measured by using Stewart (1982) model. The goal of this research is application and the type of research methodology is correlation. This study statistic population is firms listed in Tehran Stock Exchange (TSE), has been chosen during the years 2006 to 2010. To test hypotheses as classified multivariate regression advantage is backward elimination. The results show that the eight corporate governance mechanisms studied in this research, four mechanisms (government influence and government property, the amount of institutional shareholder ownership, capital structure and amount of free float) are related with created shareholders value. Also The eight corporate governance mechanisms of reviewed in this study 3 mechanisms (government influence and government property, institutional shareholder ownership rate and the amount of free float) are related with economic value added. https://acctgrev.ut.ac.ir/article_29196_e3a0629cee6dbd0a211ab379a406f0fb.pdf

Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 2 2012 07 22 The Impact of Intellectual Capital on Firms Market Value and Financial Performance The Impact of Intellectual Capital on Firms Market Value and Financial Performance 17 30 29197 10.22059/acctgrev.2012.29197 FA Zahra Pourzamani Azita Jahanshad Ali Mahmoudabadi Journal Article The increasing gap between firms' Market and Book Value has drawn wide research attention to exploring the invisible value omitted from financial statements. Some factors that impact on firms' value but don't release in financial statements are Brand value, Intellectual value. This research focuses on relationship between intellectual capital and firms' market value and financial performance of companies in Tehran stock exchange. For examining the intellectual capital, Value Added Intellectual Coefficient (VAIC) method, which was suggested in 2000 by Pulic has been used. VAIC measures the efficiency of three types of inputs: physical and financial capital, human capital, and structural capital. The study, analytically examines the separate effects of capital employed efficiency, human capital efficiency, and structural capital efficiency on market value and financial performance 90 companies listed in the Tehran Stock Exchange tested by linear regression. The results of the present study Market-to-book value ratio is negative related with value added intellectual coefficient This finding supports previews empirical research that has underlined the existence of an increasing gap between market and book value of organizations (Lev and This finding supports previews empirical research that has underlined the existence of an increasing gap between market and book value of organizations (Lev and Radhakrishnan, 2003; Lev and Zarowin, 1999; Lev, 2001). There is significant relationship between IC (measured with VAIC) and the financial performance measures (ROA). The increasing gap between firms' Market and Book Value has drawn wide research attention to exploring the invisible value omitted from financial statements. Some factors that impact on firms' value but don't release in financial statements are Brand value, Intellectual value. This research focuses on relationship between intellectual capital and firms' market value and financial performance of companies in Tehran stock exchange. For examining the intellectual capital, Value Added Intellectual Coefficient (VAIC) method, which was suggested in 2000 by Pulic has been used. VAIC measures the efficiency of three types of inputs: physical and financial capital, human capital, and structural capital. The study, analytically examines the separate effects of capital employed efficiency, human capital efficiency, and structural capital efficiency on market value and financial performance 90 companies listed in the Tehran Stock Exchange tested by linear regression. The results of the present study Market-to-book value ratio is negative related with value added intellectual coefficient This finding supports previews empirical research that has underlined the existence of an increasing gap between market and book value of organizations (Lev and This finding supports previews empirical research that has underlined the existence of an increasing gap between market and book value of organizations (Lev and Radhakrishnan, 2003; Lev and Zarowin, 1999; Lev, 2001). There is significant relationship between IC (measured with VAIC) and the financial performance measures (ROA). https://acctgrev.ut.ac.ir/article_29197_cf7f647b01e175d2d6cf49c2c80e3525.pdf

Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 2 2012 07 22 Earnings Management Prediction Using Neural Networks and Decision Tree in TSE Earnings Management Prediction Using Neural Networks and Decision Tree in TSE 31 46 29198 10.22059/acctgrev.2012.29198 FA Rezvan Hejazi Shapoor Mohamadi Zahra Aslani 0009-0000-5972-2356 Majid Aghajani Journal Article The main goal of this research is to accurately analyze the profit management using the neural networks and decision tree and comparing them with the linear models. For this purpose eleven variables effecting the earnings management as independent variables and discretionary accruals as a dependent variable have been used. In this research 55 companies from 2006 through 2009 were analyzed in a seasonal way. Regression Panel Method of linear model and Generalized Feed Forward network and CART were used through neural network and decision tree were used. The results of the research indicated that the neural network method and decision tree in the prediction of earnings management compared to the more precise linear methods and have a lower level of error. Meanwhile, earnings management with prior discretionary accruals and performance threshold and the firm performance, size, earnings persistence in both methods has the highest connection. The main goal of this research is to accurately analyze the profit management using the neural networks and decision tree and comparing them with the linear models. For this purpose eleven variables effecting the earnings management as independent variables and discretionary accruals as a dependent variable have been used. In this research 55 companies from 2006 through 2009 were analyzed in a seasonal way. Regression Panel Method of linear model and Generalized Feed Forward network and CART were used through neural network and decision tree were used. The results of the research indicated that the neural network method and decision tree in the prediction of earnings management compared to the more precise linear methods and have a lower level of error. Meanwhile, earnings management with prior discretionary accruals and performance threshold and the firm performance, size, earnings persistence in both methods has the highest connection. https://acctgrev.ut.ac.ir/article_29198_df584d514eb49beffdd8b37311204fc9.pdf

Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 2 2012 07 22 Evaluating the Effects of Language Judgmental and Cognitive Approaches in Accounting Narratives Evaluating the Effects of Language Judgmental and Cognitive Approaches in Accounting Narratives 47 72 29199 10.22059/acctgrev.2012.29199 FA Fraydoon Rahnamay Roodposhti Hashem Nikoomaram Ali Akbar Nonahal Nahr 0000-0001-5298-4185 Journal Article This research evaluates impact of different linguistic approaches on judgmental and cognitive behaviors of investors in Iran. In recent years various researches have evaluated the impact of language tone (positive/negative) in accounting narratives and all they have defend it. Reily [40] introduced impact of construal level (concrete/abstract) of language on investment decisions in the accounting literature. Hales et al [30] also provided evidences on how and when impact of degree of the language vividness on investors' judgments. In order to study the evolution and continuation of those researches, this study offers a new approach and show that the first- the main condition for vividness of language, is not concreteness; secondly – with increase in language vividness(regardless of construe and tone), it impacts significantly on judgmental and cognitive behavior of investors; thirdly-if the concrete information is presented as a non-vivid, it (regardless of tone) will not impact on investors' judgments; finally - increased attention drawing performance in concrete information, communicate significantly with investment decisions of individuals. This research also mentions the impact of linguistic approaches to non-numerical accounting reporting for the first step in Iran's accounting and financial literature and has innovations in terms of methodology too. This research evaluates impact of different linguistic approaches on judgmental and cognitive behaviors of investors in Iran. In recent years various researches have evaluated the impact of language tone (positive/negative) in accounting narratives and all they have defend it. Reily [40] introduced impact of construal level (concrete/abstract) of language on investment decisions in the accounting literature. Hales et al [30] also provided evidences on how and when impact of degree of the language vividness on investors' judgments. In order to study the evolution and continuation of those researches, this study offers a new approach and show that the first- the main condition for vividness of language, is not concreteness; secondly – with increase in language vividness(regardless of construe and tone), it impacts significantly on judgmental and cognitive behavior of investors; thirdly-if the concrete information is presented as a non-vivid, it (regardless of tone) will not impact on investors' judgments; finally - increased attention drawing performance in concrete information, communicate significantly with investment decisions of individuals. This research also mentions the impact of linguistic approaches to non-numerical accounting reporting for the first step in Iran's accounting and financial literature and has innovations in terms of methodology too. https://acctgrev.ut.ac.ir/article_29199_517cd23ae4375b47d04ef6363a229b13.pdf

Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 2 2012 07 22 Auditor's Cognitive Style, Information Load and Judgment Quality in Going Concern Auditor's Cognitive Style, Information Load and Judgment Quality in Going Concern 73 96 29200 10.22059/acctgrev.2012.29200 FA Mohamad Arab Mazar 0000-0002-5430-0477 Abolghasem Maseihabadi Azam Pouryousof Journal Article This research investigated the impact of auditor's cognitive style and information load on judgment quality in going concern. Research questions and hypotheses draws upon the Schroder, Driver, and Streufert Theory in information processing. Based in this theory, the person ability for information processing depends on their cognitive style and decreased as information load increased. Auditors at partners, managers and senior's level in Auditing Organization were used as subject, and two expose tests: "Test of cognitive style" and "Test of judgment in going concern ".One-entry analysis of variance used to data analysis. Findings suggest that auditor's ability for information processing depend on their cognitive style and forward in Schroder, Driver and streufert theory. This research investigated the impact of auditor's cognitive style and information load on judgment quality in going concern. Research questions and hypotheses draws upon the Schroder, Driver, and Streufert Theory in information processing. Based in this theory, the person ability for information processing depends on their cognitive style and decreased as information load increased. Auditors at partners, managers and senior's level in Auditing Organization were used as subject, and two expose tests: "Test of cognitive style" and "Test of judgment in going concern ".One-entry analysis of variance used to data analysis. Findings suggest that auditor's ability for information processing depend on their cognitive style and forward in Schroder, Driver and streufert theory. https://acctgrev.ut.ac.ir/article_29200_4dc78ee9d84aeec573c4179447b5f17c.pdf

Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 2 2012 07 22 Agency Problems and Audit Fees Further Tests of the Free Cash Flow Hypothesis Agency Problems and Audit Fees Further Tests of the Free Cash Flow Hypothesis 97 122 29201 10.22059/acctgrev.2012.29201 FA Saeid Hossein Alavi Tabari Moojgan Robatmili Mojgan Robatmili Journal Article We expect that the auditors assess higher risks and expend more effort to address the agency problems of FCF and growth opportunities. Companies often use debt and dividend to monitor (and mitigate) the agency problems of FCF, as these reduce the funds available to managers. This study provides further evidence on whether audit fees vary in relation to the agency problems that can arise in companies with FCF. For this, we partitioned the sample into four groups according to FCF and growth opportunities. Then we test the relationship between audit fee level and experimental variables in the form of a four-level categorical variable (FG). Our sample consists of 88 companies in listed Tehran Stock Exchange for the period of 1381 to 1388. In order to study the relationships t-test and ANCOVA method have been used. Our results show that companies with high FCF and high growth opportunities are more likely to have higher audit fees than companies with low FCF and high growth opportunities. We also find that higher debt levels moderate the higher audit fees, but dividend payout does not. We expect that the auditors assess higher risks and expend more effort to address the agency problems of FCF and growth opportunities. Companies often use debt and dividend to monitor (and mitigate) the agency problems of FCF, as these reduce the funds available to managers. This study provides further evidence on whether audit fees vary in relation to the agency problems that can arise in companies with FCF. For this, we partitioned the sample into four groups according to FCF and growth opportunities. Then we test the relationship between audit fee level and experimental variables in the form of a four-level categorical variable (FG). Our sample consists of 88 companies in listed Tehran Stock Exchange for the period of 1381 to 1388. In order to study the relationships t-test and ANCOVA method have been used. Our results show that companies with high FCF and high growth opportunities are more likely to have higher audit fees than companies with low FCF and high growth opportunities. We also find that higher debt levels moderate the higher audit fees, but dividend payout does not. https://acctgrev.ut.ac.ir/article_29201_6774b4304eb6167c263fa777644370aa.pdf

Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 2 2012 07 22 The Investigation of the Effect of some Corporate Governance Attributes on Capital Structure Decisions for Corporation Listed in Tehran Stock Exchange The Investigation of the Effect of some Corporate Governance Attributes on Capital Structure Decisions for Corporation Listed in Tehran Stock Exchange 123 136 29202 10.22059/acctgrev.2012.29202 FA Abdolkarim Moghaddam Abolfazl Momeni Yanesari Journal Article Throughout the recent decades, the issue of capital structure and the factors effective on it has been increasingly taken into consideration by the researchers working in the area of finance literature. One of these effective factors, to some researchers, is Corporate Governance. Therefore, the present study wants to investigate whether there is a relationship between some specific features of Board of Managers which is by itself considered as one of the mechanisms of firm's Corporate Governance and firms' capital structure. To do so, the number of 90 firms was selected from those which were listed in Tehran's stock exchange during the period of 1383 until 1387 to work as the sample of the study. The independent variables of the study included 'board size', 'CEO duality' and 'proportion of outside directors' while the dependent variable was decided to be 'debt ratio' (as a measure of capital structure). The variables were empirically tested by multiple regression analysis. The results obtained from testing the research hypotheses indicate that in firms where the duties of the chairman of the board is separated from those of CEO and also in firms the benefit from fewer members of the board, the tendency to utilize debt increases. However, no significant relationship was found between 'proportion of outside directors' and 'capital structure'. Throughout the recent decades, the issue of capital structure and the factors effective on it has been increasingly taken into consideration by the researchers working in the area of finance literature. One of these effective factors, to some researchers, is Corporate Governance. Therefore, the present study wants to investigate whether there is a relationship between some specific features of Board of Managers which is by itself considered as one of the mechanisms of firm's Corporate Governance and firms' capital structure. To do so, the number of 90 firms was selected from those which were listed in Tehran's stock exchange during the period of 1383 until 1387 to work as the sample of the study. The independent variables of the study included 'board size', 'CEO duality' and 'proportion of outside directors' while the dependent variable was decided to be 'debt ratio' (as a measure of capital structure). The variables were empirically tested by multiple regression analysis. The results obtained from testing the research hypotheses indicate that in firms where the duties of the chairman of the board is separated from those of CEO and also in firms the benefit from fewer members of the board, the tendency to utilize debt increases. However, no significant relationship was found between 'proportion of outside directors' and 'capital structure'. https://acctgrev.ut.ac.ir/article_29202_d023867f3674a2d8514221428c6760ef.pdf