مقالات رزومه آرش قربانی

The principal role of accruals in accounting is to improve the measurement accuracy of the economic performance by eliminating the timing errors of operating cash flows. At the same time, random and deliberate errors in the estimations of accruals from cash flows reduce the accuracy of economic performance measurement. This study investigates the association between audit fees and the accounting error component of accruals. The study uses a sample including 656 observations from 107 unique firms listed on the Tehran Stock Exchange from 2014 to 2020. Multivariate regression models are used to investigate the effect of the standard deviation of the accounting error component of accruals on audit fees. In addition, the research addresses the endogeneity of accounting errors and audit fees using simultaneous equations and dynamic panel models. The standard deviation of the accounting error component of accruals is estimated using Nikolaev’s (2018) model. This model explicitly introduces the true economic performance and helps better separate the accounting error component of accruals and the performance component of accruals. This study reports robust evidence that the standard deviation of the accounting error component of accruals has a positive association with the audit fee. Research evidence also shows that the accounting error component of accruals affects audit fees at a higher rate than the other component. The results suggest that the accounting errors component of accruals influences audit pricing by motivating bribery, changing the demand and supply factors of audit services, and increasing the auditor risk premium.

The main purpose of this paper is to investigate the rate at which innovations to accruals are converted into cash flows in the subsequent fiscal periods. The research proposes the cash conversation rate as a new measure of earnings quality. This paper uses a sample consisting of 3014 firm-year observations from 200 unique firms listed on the Tehran Security Exchange for the period 2002-2017. It employs a variety of regression models including moving average models and multivariate models. The findings show that accruals innovations tend to reverse fully in the next period for about 76 percent of the sample firms. The findings also show that for firms whose accrual innovations reverse within one year, the mean value of the cash conversation rate is about 0.413. Furthermore, the findings suggest that there is an inverse relationship between the cash conversation rate and accruals estimations errors. The obtained results suggest that accrual innovations are a source of new and additional information about future cash flows.

The main purpose of this study is to develop and measure the notion of accounting quality, which is defined here as the degree accounting accruals contribute to the accurate measurement of the firm’s economic performance.

The research proposes a set of moment conditions to disentangle the three distinct variance components: the variance of true performance, the variance of performance measurement component in accruals and the variance of accounting error. The GMM estimation has been used to solve the moment conditions and estimate the variance components. The research employs a sample of annual data of 180 firms listed in Tehran Security Exchange spanning the year 2004-2017. 

The research findings show that, on average, the standard deviation of performance component in accruals exceeds the standard deviation of accounting error.

The result overall implies that, on average, the benefits of using accounting accruals exceed its costs. This is consistent with the role of auditing in reducing the noise of accounting earnings and the current demand for accounting accrual process.

The study proposes a new and flexible method for capturing and identifying the notion of accounting quality.

Using a sample including 2642 observations of 2003-2016 annual data of firms listed in Tehran Security Exchange, this study investigates the implications of correlation between non-discretionary accruals and partitioning variables when testing the positive accounting theories hypotheses. In earnings management detection tests, it is common for researchers to use variables which partition their sample into two groups, for which differences in motivation for income manipulation are predicted. Since earnings management stimuli are assumed to be correlated with variables like firm performance, leverage or size, the use of these proxies are popular in empirical tests of positive accounting theories hypotheses. The correlation between non-discretionary accruals and the partitioning variable implies that part of the variation of non-discretionary accruals is generated by the partitioning variable. If accruals model does not control for the correlation, this part will be added to the discretionary accruals. In this study, we provide evidence that, when correlation between non-discretionary accruals and the above-mentioned partitioning variables remains uncontrolled, accrual-based models tend to generate measurement error in the estimate of discretionary accruals that significantly affects the sign and the magnitude of correlation between discretionary accruals and the partitioning variables. The findings of a Monte Carlo simulation also indicate that the Jones model relatively generates less type I error when it is adjusted to control for the relation between non-discretionary accruals and firm performance.