Univrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421Investigating the Relationship between Default Risk and Earning Response Coefficient (ERC)Investigating the Relationship between Default Risk and Earning Response Coefficient (ERC)1185078010.22059/acctgrev.2014.50780FAAliEbrahimi KordlarAssistant Prof., Management Faculty, University of Tehran, Tehran, IranZohrehMohammadi ShadPh.D Accounting student, Tarbiat Modarres University, Tehran, IranJournal Article20131110One of the factors that previous studies have identified as an influential factor in Earning Response Coefficient (ERC) is default risk. The purpose of this study is to investigate the relationship between default risk and Earnings Response Coefficient in Tehran stock exchange during the years 1388 to 1391. This study used two proxies to measure default risk; leverage ratio and f-score. To test the effect of default risk on earnings response coefficients, reverse regression of abnormal returns and unexpected earnings is used and the effect of systematic risk and the growth opportunity on earnings response coefficients are controlled. The results of the study reveal a significant negative relationship between default risk and ERC. Results indicate that default risk is not only important for creditors, but it is also important for investors and affects their reaction to good and bad news from earning announcement.One of the factors that previous studies have identified as an influential factor in Earning Response Coefficient (ERC) is default risk. The purpose of this study is to investigate the relationship between default risk and Earnings Response Coefficient in Tehran stock exchange during the years 1388 to 1391. This study used two proxies to measure default risk; leverage ratio and f-score. To test the effect of default risk on earnings response coefficients, reverse regression of abnormal returns and unexpected earnings is used and the effect of systematic risk and the growth opportunity on earnings response coefficients are controlled. The results of the study reveal a significant negative relationship between default risk and ERC. Results indicate that default risk is not only important for creditors, but it is also important for investors and affects their reaction to good and bad news from earning announcement.https://acctgrev.ut.ac.ir/article_50780_4124d716b123a0c2212d5893d420c67b.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421The Impact of Conservatism on Management Earnings ForecastsThe Impact of Conservatism on Management Earnings Forecasts19385078110.22059/acctgrev.2014.50781FAGholam HosseinAsadiAssistant Prof., Faculty of Management & Accounting, Shahid Beheshti University, Tehran, IranMortezaBayatMS. Student of Accounting, Shahid Beheshti University, Tehran, IranJournal Article20130929This research examines the relationship between conservative financial reporting and management earnings forecasts. In this study, data from 76 firms listed in the Tehran Stock Exchange from 2005 to 2011 has been collected and the research hypothesis has been tested by utilizing the regression coefficient analysis. Conservatism was measured using the Gioly and Hayn model (2000), Basu model (1997) and Market-t- Book (MTB) standard and the effects of conservatism on management earnings forecast was measured. The results show that conservatism has a significant and negative relationship on the number and frequency of earnings predictions by managers; i.e. the greater the degree of conservatism is among managers, the less willing the managers are to disclose and reveal their forecasts. However, no relationship was observed between conservatism and the accuracy of predictions. The results also show that there is a significant and negative relationship between conservatism and predicting validity. In other words, as conservatism level increases, the earnings prediction error by managers decreases.This research examines the relationship between conservative financial reporting and management earnings forecasts. In this study, data from 76 firms listed in the Tehran Stock Exchange from 2005 to 2011 has been collected and the research hypothesis has been tested by utilizing the regression coefficient analysis. Conservatism was measured using the Gioly and Hayn model (2000), Basu model (1997) and Market-t- Book (MTB) standard and the effects of conservatism on management earnings forecast was measured. The results show that conservatism has a significant and negative relationship on the number and frequency of earnings predictions by managers; i.e. the greater the degree of conservatism is among managers, the less willing the managers are to disclose and reveal their forecasts. However, no relationship was observed between conservatism and the accuracy of predictions. The results also show that there is a significant and negative relationship between conservatism and predicting validity. In other words, as conservatism level increases, the earnings prediction error by managers decreases.https://acctgrev.ut.ac.ir/article_50781_d91f97f3fb1f26ff2cd3e1b6230a8382.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421The Impact of Stock Price Changes on Voluntary Disclosure in Firms Listed in Tehran Stock Exchange (TSE)The Impact of Stock Price Changes on Voluntary Disclosure in Firms Listed in Tehran Stock Exchange (TSE)39565078210.22059/acctgrev.2014.50782FAOmidPourheidariAssociate Prof, Shahid Bahonar University, Kerman, IranRahimArababadiMSc. Student, Shahid Bahonar University, Kerman, IranJournal Article20130925The main objective of this study is to investigate the relationship between stock price changes and voluntary disclosure of managers. Specifically, it aims to investigate whether stock price declines prompt managers to voluntarily disclosure the previously withheld information (management forecasts). The population of the study includes the firms listed in Tehran Stock Exchange (TSE) between 2002 and 2011. The results indicate that following larger stock price declines, managers are more likely to release forecasts (good or bad news) but that there is no association between the likelihood of releasing forecasts and the magnitude of stock price increases. More generally, this study provides evidence that managers disclose good news and withhold bad news in order to maximize their firm’s stock price. However, a stock price decline as a result of a public event such as income statement can encourage managers to disclose previously withheld bad news which in managers’ viewpoint, might not be unfavorable anymore after larger stock price decline, and might now be considered as good news.The main objective of this study is to investigate the relationship between stock price changes and voluntary disclosure of managers. Specifically, it aims to investigate whether stock price declines prompt managers to voluntarily disclosure the previously withheld information (management forecasts). The population of the study includes the firms listed in Tehran Stock Exchange (TSE) between 2002 and 2011. The results indicate that following larger stock price declines, managers are more likely to release forecasts (good or bad news) but that there is no association between the likelihood of releasing forecasts and the magnitude of stock price increases. More generally, this study provides evidence that managers disclose good news and withhold bad news in order to maximize their firm’s stock price. However, a stock price decline as a result of a public event such as income statement can encourage managers to disclose previously withheld bad news which in managers’ viewpoint, might not be unfavorable anymore after larger stock price decline, and might now be considered as good news.https://acctgrev.ut.ac.ir/article_50782_075fce7d424b2e291d3d605609c4fbe7.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421Investigating the Effect of Ownership Structure on Audit FeesInvestigating the Effect of Ownership Structure on Audit Fees57725078310.22059/acctgrev.2014.50783FAValiKhodadadiAssociate Prof., Faculty of Economics and Social Sciences, Shahid Chamran University, Ahvaz, IranRaminGhorbaniMSc. Faculty of Economics and Social Sciences, Shahid Chamran University, Ahvaz, IranNikooKhansariMSc. Student, Faculty of social Sciences, International University of Imam Khomeini, Ghazvin, IranJournal Article20131109The purpose of this study is to evaluate the effect of ownership structure on the audit fees of listed companies in Tehran Stock Exchange. In this paper, the variables of family ownership, state ownership, institutional ownership and management ownership are used as ownership structures affecting the audit fees. In this context, four hypotheses were developed to explain the relationship between ownership structure and audit fees. The hypotheses and data were formulated for companies in Tehran Stock Exchange for the period between 2006 and 2011 and compositional data regression model was used to test the hypotheses. The results showed that family ownership and state ownership significantly affect audit fees, but the impact of institutional ownership and management ownership on audit fees is not significant.The purpose of this study is to evaluate the effect of ownership structure on the audit fees of listed companies in Tehran Stock Exchange. In this paper, the variables of family ownership, state ownership, institutional ownership and management ownership are used as ownership structures affecting the audit fees. In this context, four hypotheses were developed to explain the relationship between ownership structure and audit fees. The hypotheses and data were formulated for companies in Tehran Stock Exchange for the period between 2006 and 2011 and compositional data regression model was used to test the hypotheses. The results showed that family ownership and state ownership significantly affect audit fees, but the impact of institutional ownership and management ownership on audit fees is not significant.https://acctgrev.ut.ac.ir/article_50783_6c2f24575928e7d013aeaee48cf67c6c.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421Investigating the Relationship between Growth and Profitability of the Companies Listed in Tehran Stock Exchange Using a Simultaneous Equations SystemInvestigating the Relationship between Growth and Profitability of the Companies Listed in Tehran Stock Exchange Using a Simultaneous Equations System73885078410.22059/acctgrev.2014.50784FAShokroolahKhajaviAssociate Prof., Shiraz University, Shiraz, IranSajadBehpurPh.D. Student, Shiraz University, Shiraz, IranAlirezaMomtazianMSc. Student, Shiraz University, Shiraz, IranMohsenSalehiniaMSc. Student, Shiraz University, Shiraz, IranJournal Article20131001There is a duality in studies on the relationship between growth and firm profitability. While some studies have examined the effects of growth on firm profitability, other studies have examined the effects of firm profitability on growth. Reviewing the evidence of the validity of both approaches mentioned above can mean that there is a bilateral (two-sided) relationship between these two variables. In this regard, the goal of present research is to study the bilateral relationship between growth and firm profitability in 173 companies listed in Tehran Stock Exchange (TSE) during 2003 to 2011. First, the bilateral relationship between the two variables was confirmed with Granger causality test and then simultaneous equations system was estimated using two-stage regression. The results express that there is a bilateral relationship between growth and firm profitability of listed companies of TSE. In other words, the results of the simultaneous equation system are more reliable and valid than that of single-equation.There is a duality in studies on the relationship between growth and firm profitability. While some studies have examined the effects of growth on firm profitability, other studies have examined the effects of firm profitability on growth. Reviewing the evidence of the validity of both approaches mentioned above can mean that there is a bilateral (two-sided) relationship between these two variables. In this regard, the goal of present research is to study the bilateral relationship between growth and firm profitability in 173 companies listed in Tehran Stock Exchange (TSE) during 2003 to 2011. First, the bilateral relationship between the two variables was confirmed with Granger causality test and then simultaneous equations system was estimated using two-stage regression. The results express that there is a bilateral relationship between growth and firm profitability of listed companies of TSE. In other words, the results of the simultaneous equation system are more reliable and valid than that of single-equation.https://acctgrev.ut.ac.ir/article_50784_da43165058c8ccffaa426da8eeb66dda.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421The Effect of Uncertainty Level on Stock Prices Reaction to the Good News and Bad News during Business CyclesThe Effect of Uncertainty Level on Stock Prices Reaction to the Good News and Bad News during Business Cycles891085078510.22059/acctgrev.2014.50785FAMehdiMeshkiAssistant Professor, Finance, Payame Noor University, Rasht, IranHosseinAshrafiMS. Student of Accounting, Payame Noor University, Behshar, IranJournal Article20130925The main purpose of the present research is to investigate the reactions of stock prices to good and bad news during economic expansions and recessions under different levels of uncertainty. The study period is between the years 1385 to 1390and the population of the study is 111 companies listed in Tehran Stock Exchange (TSE). We use Generalized Method of Moments and Partial Least Squares method to analyze the research variables. The results show that high or low uncertainty is not effective in the reaction of stock prices to bad news in time of prosperity. Also the results suggested that when good news arrives during recessions, higher uncertainty of investors leads to relatively smaller price increase and vice versa.The main purpose of the present research is to investigate the reactions of stock prices to good and bad news during economic expansions and recessions under different levels of uncertainty. The study period is between the years 1385 to 1390and the population of the study is 111 companies listed in Tehran Stock Exchange (TSE). We use Generalized Method of Moments and Partial Least Squares method to analyze the research variables. The results show that high or low uncertainty is not effective in the reaction of stock prices to bad news in time of prosperity. Also the results suggested that when good news arrives during recessions, higher uncertainty of investors leads to relatively smaller price increase and vice versa.https://acctgrev.ut.ac.ir/article_50785_a315d626e20d421dd5fcda2e268c698f.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421Investigating the Relationship between Corporate Governance and Systematic RiskInvestigating the Relationship between Corporate Governance and Systematic Risk1091265078610.22059/acctgrev.2014.50786FAMohammad RezaNikbakhtAssociate Prof. Faculty of Management, Tehran University, IranZahraTaheriPhD Student of Accounting, Faculty of Management, Tehran University, IranJournal Article20130827Open economy policy and increasing communication among companies has led to their interaction on one another, therefore, the managers are dealing with more uncertainty concerning their basic operations. In order to confront such uncertainty, managers have to use the most appropriate management policies. This can be done by implementing corporate governance. Theoretically, corporate governance can be used as a means to change systematic risk. This study examines the relationship between corporate governance and systematic risk among firms listed in Tehran Stock Exchange. In order to realize this aim, the financial information of 154 firms between 2004 and 2011 has been used. The statistical method used for testing the hypotheses is OLS Regression. The Research model has been initially run for the whole data. Then in order to examine each hypothesis more precisely based on the classifications of PerSteve (2011) the model was run in three different categories of firms (firms with beta lower than 0.5 as low-risk, firms with beta between 0/5 & 1 as medium-risk, and firms with beta higher than 1 as high-risk firms).
The findings of the research show that there is a significant relationship between the percentage of institutional ownerships as one of the corporate governance elements and systematic risk. There is an inverse relationship between the percentage of other independent directors of firms and systematic risk; however, the relationship in other categories of firms is not significant.Open economy policy and increasing communication among companies has led to their interaction on one another, therefore, the managers are dealing with more uncertainty concerning their basic operations. In order to confront such uncertainty, managers have to use the most appropriate management policies. This can be done by implementing corporate governance. Theoretically, corporate governance can be used as a means to change systematic risk. This study examines the relationship between corporate governance and systematic risk among firms listed in Tehran Stock Exchange. In order to realize this aim, the financial information of 154 firms between 2004 and 2011 has been used. The statistical method used for testing the hypotheses is OLS Regression. The Research model has been initially run for the whole data. Then in order to examine each hypothesis more precisely based on the classifications of PerSteve (2011) the model was run in three different categories of firms (firms with beta lower than 0.5 as low-risk, firms with beta between 0/5 & 1 as medium-risk, and firms with beta higher than 1 as high-risk firms).
The findings of the research show that there is a significant relationship between the percentage of institutional ownerships as one of the corporate governance elements and systematic risk. There is an inverse relationship between the percentage of other independent directors of firms and systematic risk; however, the relationship in other categories of firms is not significant.https://acctgrev.ut.ac.ir/article_50786_046d5fd8cf77f362be16199c8b4b7c73.pdfUnivrsity Of Tehran PressAccounting and Auditing Review2645-802021120140421English AbstractsEnglish Abstracts175211910.22059/acctgrev.2014.52119FAJournal Article20141208https://acctgrev.ut.ac.ir/article_52119_addf1c071926f6043063b80eac8b12ac.pdf