Iranian Journal of Accounting, Auditing and Finance
Volume:5 Issue: 2, Spring 2021

Analyst forecast information is available to the public in less developed countries at a little cost. The role of analysts in forecasting stock returns cannot be over-emphasized. Yet, little scholarly works have been done in Nigeria. The purpose of this paper is to interrogate analysts’ forecasts' effect on share prices in Nigeria. The research approach is correlational. We collected and analyzed data for several years from the annual reports and accounts of 138 corporations over 10 years (2010-2019). The results indicate that experts 1, 3, and 4 have a significant and positive impact on stock return. The information from expert 2 had failed to show any signal of significance. Based on the majority of these results, the paper recommends that financial analysts consider the information when considering the price of stocks in Nigeria. The conclusion is that the study results have implications for stakeholders (management, public, employees, suppliers, investors, creditors, regulators, governments, customers, users, partners, charity organizations, special interest-holders; competitors, community groups, trade groups, and the media/press) and based on the findings, it is suggested among others that stakeholders who need the prices of stocks should depend on analyst forecast.

Prior studies provide mixed evidence on whether the transition to International Financial Reporting Standards (IFRS) deters or contributes to greater financial reporting quality. Thus, this research investigates how the transition affects financial reporting quality. This study measures financial reporting quality by earnings management and the value relevance of earnings. Using a sample of listed firms on the Iraq Stock Exchange during 2015–2019, the current study indicates no significant relationship between the transition to IFRS and earnings management. Further, the transition to IFRS positively affects the value relevance of earnings. Thus, collectively, the impact of the transition to IFRS is conditional to the proxies of financial reporting quality. This study contributes to the existing literature by providing empirical evidence regarding the impact of IFRS on financial reporting in an under-studied emerging market. This paper has important implications for regulators, standard setters, listed firms, and other stockholders. It shows that the transition to IFRS has positive effects even in firms from developing countries.

The cost of equity capital plays a key role in financing and investment decisions. The cost of equity capital is defined conceptually to expected returns. In other words, the ‌ is the expected minimum rate of return. Suppose the expected return is less than the cost of equity capital. In that case, the entity's value will decrease, so management must try to maintain the entity's value to bring the expected return to at least the cost of equity capital; the key to success is to reduce the cost of equity capital. The present study aimed to determine the effect of audit firm choice on the variable cost of equity capital. Therefore, the paradigm or philosophical presupposition was positivist and meta-positivist. The statistical population included 99 companies listed on the Tehran Stock Exchange from 2009 to 2019. In addition, data analysis was performed using the R software package. According to the results, the auditor choice variable from the audit firm and the total debt to equity ratio significantly affected the cost of equity capital. Moreover, the variable of lack of auditor change had a significant impact on companies’ cost of equity capital. Other variables of the two models were insignificant and did not affect the cost of equity capital.

This quantitative research was conducted with a positivist paradigm to evaluate the methods that could increase tax revenues from government revenues using oil dependency reduction. The researcher used the annual data of Iran during 1978-2019 to analyze the research model. In addition, a generalized torque technique was applied in the EViews software to estimate the model. According to the results, the variable of oil revenues had the most significant effect on the government revenues, followed by the revenue of sales and consumption tax and value-added tax (VAT), indicating that the government could easily reduce oil revenues by efficient policies and replace this source of income with the revenue from sales and consumption tax and VAT. On the other hand, the revenue from wealth tax had the least significant impact on the government revenues, which was possibly caused by the inefficiency of reception methods or the inability to be identified. Further assessment in this regard could help governments identify extremely more appropriate revenue resources to extract less oil and control social inequity. An important issue observed in this study was the reverse coefficient of the revenue from corporate tax. Most of these companies may be manufacturing and industrial units, and given the pressure of economic and political issues and inflation on the country, they have mostly reacted to enormous taxes, had tax evasion, or reduced their production level, which has, in turn, increased the rate of unemployment and decreased the national gross domestic product, thereby reducing the government revenues.

The present study assesses the relationship between corporate reputation, CEO narcissism, and financial statement comparability of listed firms on the Tehran Stock Exchange. For this study, multivariate and logistic regression is used for hypothesis testing. The study's statistical population includes all listed firms on the Tehran Stock Exchange during 2012-2017, and the sample comprises 740 year-company. The exploratory factor analysis of 34 variables is used for calculating corporate reputation. The study results show a positive and significant relationship between corporate reputation, CEO narcissism, and financial statement comparability. This means that by increasing corporate reputation, the comparability of financial statements and CEO narcissism will go up. This paper can contribute to the development of knowledge in this field, and this is the first study to compute corporate reputation using the exploratory factor analysis of 34 variables.

This research investigates intangible assets' role in firm performance in the Tehran Stock Exchange's firm performance. Multiple Linear Regression is conducted to examine a large pool of data for 1350 company-year over ten years from 2008 to 2018. Four measures are used for performance: return on assets, return on equity, net profit, and profit margin. The findings show that unrecorded and recorded intangible assets positively impact firm performance (return on assets, return on equity, net profit, and profit margin). The authors also find that last year's recorded intangible assets and performance (return on assets, return on equity, net profit, and profit margin) are related positively. This paper magnifies the significant role of intangible assets on firm performance. The current study outcomes may give managers insight to provide serious attention to intangible assets in developing nations to improve performance.

The present study aims to assess the relationship between management entrenchment and audit opinion shopping in listed firms on the Tehran Stock Exchange. In other words, this paper attempts to figure out whether management entrenchment can contribute to audit opinion shopping or not. For this study, research hypotheses were tested using a sample of 768 observations on the Tehran Stock Exchange during 2012-2017 and by employing the Logistic Regression Pattern. The results show a significant relationship between management entrenchment and opinion shopping, which means entrenchment leads to increased opinion shopping. Management entrenchment is among managers' factors to increase authority, job security, interests, and corporate governance, contributing to the decline of management entrenchment. One of the mechanisms of corporate governance is the auditor’s opinion. There are few studies on the quality of corporate governance components in Iran, and this study can pave the way for further studies on the relationship of management entrenchment with other factors.