فصلنامه دانش حسابداری
پیاپی 9 (تابستان 1391)

In this study the ability of accounting earnings in predicting and explaining the stock returns of the firms in Tehran Stock Exchange has been investigated. This research aims to determine whether the number of accounting earning has considerable role in predicting and explaining the stock returns and revealing capital market response to information, after controlling risk and discount rate indicators. Thus 41 companies have been selected in the years 1375 to 1389. Selected data for analysis are of time series type. The selected operating income and returns have been aggregated through the ratio of individual corporation’s market values on total sample market values, and the regression analysis has been used for testing the hypotheses. Results indicate that current operating book income to equity ratio is positive predictors of future returns. Moreover, changes in operating income have the ability in explaning returns around earning’s changes announcement.

This study investigates the effects of company investments on the relationship between losses with value of company in Iran. The statistical society includes companies accepted in Tehran Stock Exchange and the time span of the study is from the beginning of 2000 to end of 2010. The statistical sample of the research has been obtained by eliminating method from society of companies. In fact, the sample companies are loss companies. In this study, for statistical analysis and hypothesis testing, the method of multiple linear regressions is used. The main question in this research is, if there is a relationship between losses and market value of the stocks in loss companies. The results from testing of hypothesis show that companies’ investment have positive effects on the relationship between losses with market value of the stocks in loss companies. This means that companies’ investment reduces the negative relationship between losses and market value of the stocks in loss companies.

The aim of this study is to investigate the relationship between accruals quality and cash holdings for the listed companies in the Tehran Stock Exchange. For determining accruals quality, Dechow and Dichev model (2002), and for breaking accruals into two components, namely the Discretionary and Non-discretionary, adjusted Jones model were employed. Also, to measure cash holdings in exchange companies, Ozkan and Ozkan (2004) and Opler et al (1999) models were used. Our study sample included 54 companies listed in Tehran Stock Exchange (TSE) during 2003 to 2009. For hypotheses testing, pooled data (with fixed effects) and econometric software of Eviews 6, were used. The results reveal there is a positive and non significant relationship between accruals quality and cash holdings, but in the case of the relationships between discretionary and non-discretionary accruals with cash holdings, there were negative and significant, and negative and non-significant relationships, respectively. Also, the results show that bigger companies and the companies with other sources of cash assets for cash hold less cash, but inversely, companies with more return in cash (opportunity cost on investing in cash assets) hold more cash.

This study attempts to answer the question that which one of cash components of earning is the cause of persistence of cash component of earnings more than accrual component. Cash component of earnings are decomposed into: (1) the changes in the cash balance, (2) issuances/distributions to debt, and (3) issuances/distributions to equity. In these analyses a sample of companies in Tehran Stock Exchange has been used in 1382 to 1387. For the analysis of the data, multivariate regression and panel data method were used. The results show that the higher persistence of the cash component is due to the subcomponent related to equity. Also, the cash distributed to debt holders has the lowest level of persistence than other cash component of earning.

In this research, in addition to the investigation on the relationship between accruals and future return, the effect of intangible return in prior periods on the relationship between accruals and future return was examined. For this intent, a sample of 80 firms listed in Tehran Stock Exchange during the period of 1999-2010 was examined. For hypotheses testing, the method of multivariate and univariate regression analyse with pooling data analysis is used. The results showed that there was a meaningful and negative relationship between accruals and future return (accrual anomaly). In addition, the intangible return in prior periods is effective in the relationship between accruals and future return. In other words, using this variable in the research model, the meaningful and negative relationship between accruals and future return disappears.

This paper investigated Market Timing Theory and the effects on capital structure. We examined capital structure to past market valuations. The firms with low leverage tend to finance when their valuations were high, as measured by the market-to-book ratio (MTB). The firms with high leverage tend to be those that raise funds when their valuations were low. Temporary changes in market-to-book lead to permanent changes in capital structure, and temporary increases in market-to-book lead to permanent increases in cash balances. Then the results are difficult to reconcile with the pecking order and trade-off theory. The results are consistent with the theory that capital structure is the cumulative outcome of a series of market-timing-motivated financing decisions.We analysed data of 101 firms listed in Tehran Stock Exchange in the period 1378-1386. The result shows that Capital Structure is not consistent with Market Timing Theory.

Researches show that if market value of stock in a firm exceeds its true value, this overvaluation affects the managerial behavior and corporation actions. This research provides evidence on the role of equity overvaluation on income-increasing earnings management in the future. For this purpose the impact of equity overvaluation on subsequent income-increasing earnings management is examined, using collection of financial data in the years 2004 to 2008 for about 60 listed companies in Tehran Stock Exchange, and using correlation analysis, regression analysis and mean-difference testing methods. Results of the research show that equity overvaluation has positive and significant relationship with subsequent income-increasing earnings management. Indeed in the studied companies in Tehran Stock Exchange, when stock would overvalue by the market, firms management tend to support valuation errors to access benefit of stock price rising through discretionary accruals manipulation.

Entities must restate their comparative financial statements when they correct prior periods accounting errors or change accounting methods. Although financial restatements have adverse effects on the relevance and reliability of financial statements’ information, financial restatement has increased considerably among listed companies in Tehran Stock Exchange, TSE, in the recent years. The main objective of this research is to identify the determinants of financial restatements in Iran. First, we recognized the effective factors by interviewing 50 experts, and then, using such factors, we estimated a logit regression model with observations on 202 listed companies in the TSE in the years 2004 to 2010. Our findings show that profitability, financial leverage, CEO duration, CEO change, auditors change, and audit firms size may affect financial restatements.