جستجوی مقالات مرتبط با کلیدواژه « value relevance » در نشریات گروه « حسابداری »

The purpose of the present research was to investigate the effect of structural failure on the value relevance of accounting information.

This is a quasi-experimental, post-event, and interdisciplinary study. Various econometric methods including multiple regression analysis with panel data econometric method, endogenous calculation of structural failures, and Wong's test-z were applied to determine the difference between the coefficients of the models. To measure and calculate the structural failure, the endogenous structural failure model proposed by Bay and Peron was used and to measure the value relevance of accounting information, the two variables of profit and book value in both price and return models were used.

The research findings indicated the existence of three valid structural failures during the research period.  Iran's capital market was suffering a structural failure during the time span of 2011, 2012, and 2017. It was also found that when a structural failure occurs, the value relevance of accounting information decreases. The value relevance of accounting information while ignoring structural failure is 16%. This figure reaches 37% if structural failure is taken into consideration. In addition, the findings of the research showed that due to the difference in the coefficients of determining the fitting patterns, the price pattern is more explanatory than the yield pattern in case of structural failure.

According to the achieved results, a structural failure has occurred in the capital market. When structural failure occurs, the value relevance of accounting information decreases. Having considered the structural failures, fitting models show different performances. By applying structural failure, the explanatory power of fitting models increased to more than twice its initial value. Therefore, it can be accepted that the value relevance of accounting information is influenced by structural failure. For this reason, paying attention to the phenomenon of structural failure makes the obtained results to be real and reliable.  It also makes it different from the case where structural failure is not taken into account. The models show different performances while considering the phenomenon of structural failures; hence, just considering accounting variables without structural failure events seems to be the simplification of the problem. This issue leads to an unfavorable effect on the interpretation of accounting information users to predict the results of the future economic activities of companies. Therefore, by ignoring the phenomenon of structural failure, linear models with constant parameters cannot explain the behavior of accounting variables efficiently. In other words, ignoring structural failures is in fact using an incorrect model. According to the results of the research, the price model shows a better explanatory power in studies compared to the yield model in case of structural failure. The research results suggest that increasing the reliability of the results in accounting research requires the implementation of regression and econometric models. The concepts and assumptions of economics and the fitting model based on structural failure should be used similar to the present study.

Companies operating in global markets that prepare their financial statements based on international accounting standards adopted the fair value approach a few years before the start of the 2008 financial crisis as part of the new regulations of international financial reporting standards. However, there are still debates about the role of IFRS and reliance on fair value accounting in weakening the stability of the financial system. In other words, fair value accounting is at the center of discussion regarding the causes and consequences of recent financial crises. One of the ways to deal with such issues is through value relevance studies. These studies focus on the role of key accounting figures, such as book value of equity and net profit, in supporting and validating company valuation in various circumstances. Therefore, the main purpose of this research is to investigate the impact of investment companies' exposure to fair value accounting on changing the valuation roles of key accounting items in financial crises.

Considering its data collection method, this is a descriptive-correlational study. It is an applied study, carried out using the Ex-Post Facto approach. In this research, according to the type of data, the multiple regression method with panel data was used. The data needed for testing the hypotheses were extracted from the text of the audited financial statements of the companies and the stock exchange websites. Since studies are considered to be based on event-type value relevance, short-term intervals are much more effective, especially in the economy of Iran, where variables such as exchange rates are very influential on stock pricing. Based on this, the period of this research includes eight interim financial reporting periods from 21/06/2019 to 21/06/2021. The first four periods were considered as the ones before the crisis and the next four as the time of the crisis. According to the available information of 76 firms during eight seasons, the firm is limited to 608 firms-courses.

In line with the research question, three hypotheses were designed. The evidence obtained to examine the first hypothesis indicated that in companies with the least amount of exposure to fair value accounting, the earnings number has an increasing content of information compared to the equity book value. In this type of investment company, it is usually difficult to estimate the net value of assets and it is associated with measurement error. The evidence of the interaction effect between the number of assets reported with fair value and the equity book value showed that this factor does not have a significant effect on the valuation role of the book value of equity. This is while the coefficient of earning is negative and significant and indicates a less positive relationship between market value and earning (i.e. reducing the role of earning valuation) in the case of companies that are more exposed to fair value accounting. The estimation results of the second model, designed in line with the second hypothesis, implied that the result of the interaction of crisis with key accounting items is both positive and significant. Accordingly, during a financial crisis, the relationship between the value of earnings and the equity book value is strengthened. However, the increase in the value of the variable coefficient of earning in interaction with the crisis is greater than the coefficient of the equity book value. Based on the achieved results, during a crisis, investment companies can realize profit by selling shares, and the faster this happens, the better companies realize the remaining unrealized profits caused by the growth of prices during the boom. By realizing a profit, they prevent the decrease of their portfolio value during the recession. Also, investment companies with more potential to receive cash profits from investable companies during the recession can still be positively valued regardless of the decrease in the daily value of the portfolio due to falling prices. The result of the interaction of the simultaneous occurrence of the financial crisis and fair value accounting on the value relevance of the equity book value indicated the weakening of this relationship, and in the case of earning, it showed the strengthening of the relationship. Therefore, if both the influencing factors of the financial crisis and the level of exposure to fair value accounting are simultaneously considered, the value relationship weighting system of companies that are more exposed to fair value accounting and are in a financial crisis will be changed in favor of earning value relationship. In other words, for such companies, the book value of equity is reduced from the value relationship and the value relevance of earning is added. Accordingly, the findings of the empirical models indicated that: 1) companies that are more exposed to fair value accounting have a lower earning value relevance, 2) During a financial crisis, the equity book value and especially the net earnings increase, and 3) More exposure to fair value accounting during the financial crisis reduces the value relevance of the equity book value and increases the value relevance of earning.

If both the financial crisis and the level of exposure to fair value accounting are considered at the same time, the value relevance weighting system of firms that are more exposed to fair value accounting and are experiencing a financial crisis changes in favor of value relevance of earning. In other words, for this group of firms, the value relevance of the equity book value is reduced and the value relevance of earning is added. Therefore, the exposure of financial statements to fair value accounting should be considered as an influencing factor when studying the valuation roles of key accounting items, i.e. book value of equity and earnings, especially when companies are facing financial crises.

Decision usefulness of accounting information as the main aim of financial reporting has recently been questioned. Some Researches have documented the declining path of information usefulness. The evidence reveals a huge gap between the market value of firms and their financial information. This is an issue of concern that follows financial reporting under current theoretical frameworks to what extent it expresses the market value of firms and as a result, it is able to provide information needs of users? According to this many investigations the concern raises that current financial reporting fails to satisfy the information needs for decision making of investors. Due to the importance of this issue, in this research Information usefulness trend from perspective of the relation of accounting information with market value of companies has been investigated.

To examine the usefulness of accounting information collecting data like other empirical researches is based on using archival data such as firm financial information and information about financial markets. In this direction, data from 1210 observation or firm-years of listed firms at Tehran Stock Exchange and Iran Fara Bourse was collected and the data about earnings, net book equity values and market capitals was collected. Using accounting information including net profit and book equity value and examining the explanatory power of this information about the market value of companies is a common method in the value relevance researches. The data analysis then, was performed based on charts of trends and the estimation of multiple linear cross-sectional regression models. In such a way that for more robustness of the research results In addition to regression analysis charts and their interpretations have also been used.

The research results indicate that despite accounting information consist of Net Book Equity Value and Earning per Share are still value relevance and useful in decision making but this usefulness significantly decreased during time and its role in explaining the market value of companies has been declining and diminishing. At the beginning of the study period net income and book value information explains 67 percent of the market value of companies whilst by taking a downward path it has decreased to 30 percent. In the other words the trend of divergence of the firms market value compared to accounting information including net income and book value over time continues to increase and this means reduction in the usefulness of information and its fading in the analysis and valuations of investors. The time series test of adjusted multiple determination coefficients also confirms this matter. In a general conclusion it can be said this results indicates a degradation of position of financial reporting in the analysis and decisions of investors that alarms for the future of accounting and reducing the usefulness of this information can still be a concern of the responsible institutions in the field of accounting policy.

This research has been done due to the increase in criticisms towards financial reporting that the accounting information has lost the feature of being relevant and therefore its usefulness in investors' decisions. Research findings in line with other research conducted in this field, indicates reduction in the ability of financial information of firms in explaining the market values over time and as a result reducing its role in investors' analyzes and decisions. In the other words, The results has highlighted concerns about the reduction in usefulness of accounting information and creates insights that regulators and researchers investigate the root causes of declining information usefulness and if necessary, current Financial Reporting Regulations be revised. In other words according to the results of this research, it can be said that conducting more researches and finding the root causes of the decrease in the usefulness of accounting information seems necessary from the legislative institutions, researchers and academic community. In this regard, paying more attention to improving the quality of financial reports especially the quality of reported profits by firms along with addressing macroeconomic variables can improve the usefulness of accounting information. Also, in order to further investigate the reasons for such a situation research on behavioral financial effects in stock markets also seems necessary. Examining the effect of these factors along with the analysis of the reasons for the decrease in the usefulness of financial reporting will definitely lead to better knowledge and more appropriate policy making. Besides these, paying attention to the views and opinions of financial reporting users and examining the differences in their views with financial reporting objectives and what is now published as general purpose financial reporting can definitely be beneficial for the future of accounting.

The relevance and usefulness of accounting information can be measured by the simultaneous relationship between accounting information, returns or stock market prices. The Comparability of accounting information, as a qualitative feature of information, increases the value relevance of accounting information. Also opacity in financial reporting through the corporate financial system increases stock volatility and, as a result, increases investment risk and investor distrust. Accordingly, the purpose of this study is the effect of comparability of financial statements and opacity in financial reporting on the value relevance between earnings and book value per share. Accordingly, a sample of 137 companies was selected from the companies listed on the Tehran Stock Exchange during the years 2013 to 2019 and to test the hypotheses, a multivariate regression model using the panel data method was used. The results showed that earnings and book value per share have a value relevance and the comparability of financial statements increases the value relevance of earnings per share. But contrary to the literature, comparability reduces the value relevance of book value per share. On the other hand, the opacity of financial reporting reduces the value relevance of book value per share due to comparability of financial statements, but does not affect the value relevance of earnings per share due to comparability.

Value relevance is one of the most important areas of focus in accounting, and due to the recent studies accounting measures’ value relevance alleviate by the passage of time. One of factors that these studies relate to this event is conservatism. In other words, recent studies show that conservatism will drop value relevance of earnings and other measures in accounting. In the other side, an important characteristic of earnings is non-linear behavior of this measure. Therefore, examining the effect of conservatism on value relevance of earnings with this characteristic in mind, is disregarded in the literature. In this research, this area will be covered. The Khan & watts measure is used for operating conservatism and Easton & Harris model is take to account the value relevance. The results of this research show that conservatism with no respect to extreme and non-extreme earnings has no relation to value relevance of earnings.

The purpose of accounting, as an information system, is to provide information needs and improve economic decisions. In this research, the use of accounting information as a style in "style investing" has been surveyed. In style investment, instead of paying attention to a particular company, assets are first categorized on the basis of a specific attribute then an asset is selected from that category. The accounting variables are the earnings per share, the book value, the size, and the operating cash flows to sales ratio. The sample includes 381 companies listed in Tehran Stock Exchange between 1387 and 1393. The results show that all of the variables are used as "style" by investors; however, the operating cash flow ratio narrowly used. According to the results, companies with lower the earnings per share, book value and size have experienced higher purchasing demand.

The Extra-assurance management is one of the most important characteristics of executives that effect on financial decision. When sales decline, overconfident managers, ensure to their capabilities to restore previous levels of sale. It is therefore more likely to overestimating sales will be in the near future, the result will be an increase in cost stickiness. However, the cost stickiness by manipulating the natural process costs and expected costs could affect informational content. The confidence comes through influencing management costs stickiness (connection interface), can also affect the value relevance. So management overconfidence comes through influencing costs stickiness, can also affect the value relevance. Hypothesis test results during the years 2007 and 2017 showed that showed that the relationship between cost stickiness and management overconfidence is significant positive. On the other hand the relationship between management overconfidence and value relevance is significant negative. The third hypothesis of the research about the effect of management overconfidence through the costs stickiness on the value relevance could not be verified.

The value relevance of accounting information is termed as "the beneficial financial statements" is defined as the effect of such information on the economic-related decisions of the users regarding the evaluation of the past and the present events as well as verification or rectification of the previous assessments. The higher the value relevance of accounting information, leads to the stronger and greater cohesion between financial statement items and firm stock-share prices or returns. The main objective of this research is study of the changes in the value relevance of accounting information among listed companies in Tehran Stock Exchange for the period of 2009 to 2015. In this research, 165 listed companies have been selected as sample and two hypotheses have been surveyed. Result of the study showed the significant changes in the value relevance of accounting information among listed companies over time. In addition, variables such as long-term debt to assets and tangible assets and percentage of state-owned shares, have positively and significantly impact on the value relevance of accounting information, whereas variables such as firm ‘size, firm’ grow and one-year cumulative stock market return have negatively and inversely impact on the value relevance of accounting information.

The purpose of this study is to explain the role of gender diversity in the value relevance of social responsibility reporting. When a firm deals with the social responsibility issue, executives and stockholders gain incentives to obtain potential benefits. On the other hand, the existence of gender diversity in a firm reflects its commitment to social laws and regulations and can affect the reputation and, ultimately, the value of the firm. This study is a post-event, causal and applied research. The sample consists of 156 firms listed in Tehran Stock Exchange during the period from 2012 to 2016. To test the hypothesis, panel data method and multivariate linear regression analysis are used. Findings show that social responsibility has value relevance in line with the theory of legitimacy. Gender diversity also increases the firm value based on the agency theory and also increases the value relevance of corporate social responsibility reporting.

Conservatism and value relevance are both the main subjects of researches included in accounting literatures. The recent value relevance decreases are, according to some academics, due to increased conservative accounting because conservatism prefers credit to relevance. So this research investigates the relation between conditional conservatism and value relevance of financial reporting and their trends. This study is an applied and descriptive - correlation research in terms of the aim and the nature and method of implementation, respectively. The sample consists of 930 firm- year observations for the period from 2011 to 2015. The research findings indicate that there is a significant positive relation between conditional conservatism and value relevance of financial reporting, that is, an increase in conservatism leads to improvement of information reliability and consequently, an increase in the value relevance of financial reporting. Moreover, findings show that conditional conservatism and value relevance of financial reporting have had an incremental trend in this period.

This study reviews The Exposure Draft provided by FASB and IASB about restructuring of financial statements, that is supposed to be the basis for amendments to International Financial Reporting Standards (IFRS). Therefore, the purpose of this research is to compare the value relevance of current and noncurrent assets disaggregated into operating and investing as well as the value relevance of aggregated current and noncurrent assets in traditional balance sheet, with the stock return.The study uses data from 144 firms listed in Tehran Stock Exchange for the years from 2002 to 2014. Also, the asset section of the firms' balance sheet is restructured based on FASB and IASB Exposure Draft. To test the hypotheses, the multivariate regression analysis based on pool data has been used. The results show that the disaggregation process of current, non-current and total asset have significant positive effects on value relevance of balance sheet items to stock return, as compared to the aggregated asset disclosure in traditional balance sheet format

Overconfidence is one of the most important management characteristics that affects firms' financial policies. When sales decline, overconfident managers being extremely confident of their capabilities to restore previous levels of sale may more likely overestimate sales in the near future and it results in a cost stickiness increase. However, the cost stickiness by manipulating the natural process and expected costs could affect informational content. Therefore, management overconfidence can affect the value relevance through influencing costs stickiness. This study is a causal, post-event and applied research. The sample consists of 74 firms during the years 2005 and 2015. The first hypothesis test findings show a significant positive relation between cost stickiness and management overconfidence and the second hypothesis test findings show a significant negative relation between management overconfidence and value relevance. The third hypothesis of the research about the effect of management overconfidence on the value relevance through the costs stickiness is not verified.

This study aims to examine the value relevance of operating cash flows disclosures (direct method versus indirect method) by the measurement view. The proposed hypotheses state that the division of information sets in the cash flows statement helps to raise the ability of explaining the value of a company. The main hypothesis, followed by two minor subhypotheses, has been tested by the rival models of price level versus return accounting, using the data of 208 companies accepted in the Tehran Stock Exchange in the years 2010-2015. Wald and Voung tests were used to test the hypotheses. Findings showed that the disaggregation of net operating cash flows into its main components (as it is theoretically possible) results in increase in the ability of explaining shares' price and returns of companies. Therefore, the empirical evidence from the Iranian capital market supports superiority of the direct cash flows method to the indirect method in terms of usefulness of decision-making.

The purpose of this study is to investigate the relationship between the audit quality and the value relevance of accounting items such as profit and book value of equity. To this end, the association with the value relevance of the earnings and the book value of the equity of the companies audited by trusted auditors (ranked A in the ranking of the Tehran Stock Exchange) and other companies is compared. In this regard, two separate samples are used. The first sample includes 110 companies that audited by auditors rated A , and the second sample includes 82 companies audited by other trusted institutions. The results indicate that the announcement of earnings and book value of capital in the case of companies that are audited by trusted auditor will create more fluctuations in their returns than other companies. As a result, information about earnings and the book value for companies with higher audit quality is more valuable than other companies. The results of this study show that auditing by auditors ranked A increases the value relevance of companies.

This study examines the value relevance in the Tehran Stock Exchange and compares the value relevance of accounting measures during the essential volatility in Tehran Stock Exchange. The statistical sample includes all firms listed in Tehran Stock Exchange with the exception of banks, investment firms, insurance firms and leasing firms. The systematic omission method is used for sampling. This study uses the panel data regression method, model ohlson (1995) during the years 2005 to 2015 and Eviews and Stata software. The findings show that during an increasing essential volatility as well as a decreasing essential volatility, the value relevance of book value and operating cash flow is less than the value relevance of net income. However, during a non-essential volatility, the value relevance of book value and operating cash flow doesn’t have any significant difference with the value relevance of net income. This research, as an innovation, examines the value relevance of accounting information during the essential volatility in Tehran Stock Exchange.

Since the issuance of IFRS, the economic consequences and the effect of IFRS adoption on accounting information quality have been the debate subject of professional and academic circles and different analyses have been presented on them. In order to respond to the contradictions and inconsistencies in analyses and results of experimental studies, in this study a meta-analysis of experimental studies on the effects of adoption of IFRS on the value relevance of accounting information was conducted. This study was conducted on a sample consisted of 72266 companies in period from 2000 to 2017, and based on these studies, 94 analyses from different countries were conducted. The results show that except in the case of voluntary adaptation, relevance value of book value of equity reduced in period after adaptation of IFRS, but the size of this reduction depends on legal and commercial conditions governing on countries. In addition, value relevance of earnings of accounting increased after adaptation of IFRS. However, more investigations suggest that earnings relevance, depending on legal and commercial conditions governing in countries, can have different reactions to adaptation of IFRS.

Managers of companies that are facing financial crisis, have high incentives to use discretionary accruals and earnings because of declining profitability and the resulting stock price decline his bonus, such acts lead to a reduction in earnings quality and reduce the quality of financial information, So the financial crisis has weakened the trust of investors in financial reporting system and the quality of its accounting is of great importance. The purpose of this research is to determine the effect of financial crisis on quality of financial reporting. In this study we use a sample of 90 firms listed in Tehran Stock Exchange during the period 2002 to 2015. The results of multiple regression model and panel data with fixed and random effects, showed that financial crisis has significant negative effect on the earning smoothing, value relevance and conditional conservatism, but it was not found significant correlation between the financial crisis with unconditional conservatism.

In this paper, headline earnings reporting and it’s value relevance components have been studied, using data from companies listed in the Tehran Stock Exchange (TSE). To test the relative and incremental value relevance, regressions for price and return levels within Ohlson (1995) model were used.
The data from a sample of 72 companies listed in the TSE, in the period 2003 to 2014, was used. The results of price levels regression showed that the headline earnings, in contrary to the headline earnings exclusions, have incremental value relevance. Also, the results of return levels regression, indicated that the headline earnings, in contrary to headline earnings exclusions, lack incremental value relevance. For relative value relevance, the test results of Vuong (1989) in price levels regression showed that the headline earnings have not relative value relevance more than basic earnings. This test in return levels regression showed that the headline earnings have relative value relevance more than basic earnings.