International Journal of Finance and Managerial Accounting
Volume:1 Issue: 3, Autumn 2016

This study explores corporate governance practices within the context of the Nigerian banking industry using instances of corporate governance lapses that resulted in part to the Nigerian banking crises. We present multiple case analysis of publicly available documents and court papers (in the United Kingdom and Nigeria) to document instances of breach and areas of weakness in the existing Nigerian code of corporate governance. We supported these with data obtained from multiple sources (using semi-structured interviews, observation and further documentary analysis) to explain and yield insight to the motivation behind these corporate governance practices. The research’s theoretical framework adopts theoretical triangulation and is designed to extend the present application of institutional theories and legitimacy theories to include roles of external and internal institutions, power blocks, and the role of legitimacy seeking acts in influencing corporate governance practices. From the case analysis, we suggest multiple actors and influences exist to shape the corporate governance practices within most commercial banks. These lapses make it possible for dominant actors within the organisation to exhibit symbolic compliance while taking advantage of these lapses to shareholders detriment.

The present study aim is to offer a systematic method of assessing the credit risk of banks and also to identify key indicators using Decision Making Trial and Evaluation Laboratory (DEMATEL) technique as well as using Logit Regression in order to predict the credit risk of listed banks. The population of the study consists of the legal clients of the bank (Ansar Bank, Bank Saderat Iran, Bank Mellat, Parsian Bank, Bank Pasargad, Post Bank of Iran, Tejarat Bank, Sina Bank, Krafarin Bank, and Eghtesad Novin Bank), who have been granted facilities. The results of the study show that, implementing DEMATEL technique, the variable of asset turnover ratio is the most influential indicator among the examined indicators in predicting the credit risk of banks. In addition, the variables of cash ratio, free cash flow ratio, and current ratio are among the most effective variables, respectively, and the current ratio is the indicator mostly affected compared to other indicators. And according to the prediction made by Logit Model, 207 of the 276 clients, who were prompt in paying their dues, have been categorized properly. This indicates 70% of the dependent variables (y =0) have been predicted properly. Furthermore, 100 of the 176 clients, who were delinquent in paying dues, have been categorized properly. This means that 57% of the variables (y=1) have been predicted properly.

Appropriate function of active management in common investment funds function depend on factors such as diversification, identification papers unrealistic pricing, market timing, and so on. Market timing are include changing the portfolio investment funds and market indices such as short-term bonds and make an asset depends on whether the market is expected in the whole of the assets to make better or worse. In this study, with using Henriksson and Merton (2008) methodology to assess the market timing function of investment funds in Iran. Based on the above methodology, beta of the portfolio takes only two values. If it is expected that the market will perform well will have a beta greater value and otherwise takes a smaller value. For this purpose, a common investment fund's monthly returns of 53 Mutual Funds were studied. The results of this study suggest that the beta of Mutual Funds was about 0.49 units higher when there waiting for the proper performance of the market than the beta of the funds in normal conditions and the amount of C in the regression equation used Henriksson and Merton significantly is positive. In other words, the existence market timing in investment funds of Iran on a monthly basis is confirmed.

This study attempts to compare and highlight the major differences between International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) with National Accounting Standards (NAS) in one of the developing nations, Iran. Over the past two decades, the Iranian accounting standards setter, Audit Organization, has decided to eliminate the differences between IFRS and NAS as a part of its convergence and harmonization project. In 2011, the Audit Organization decided that IFRS implementation would be permitted for all listed companies. The primary purpose of implementing IFRS is to enhance the international comparability of financial reports, which would attract more foreign investors to participate in the Iranian capital market, improve the efficient allocation of resources and boost the competitiveness of the market. In spite of her announcement, Iran has not supported IFRS. The purpose of this paper is to provide possible reasons for non-adoption by highlighting some important socioeconomic factors that are likely to influence the accounting environment in Iran. The main question we try to answer in this study is: to what extent is Iranian GAAP congruous with IFRS?

In this study, 3 models of Time-Varying Parameters (TVP), Dynamic Model Selection (DMS) and Dynamic Model Averaging (DMA) and a comparison with the Ordinary Least Squares (OLS) method in MATLAB in the time period 2003-2013 (with data on a monthly basis) are discussed. In the present study, the variables of unofficial exchange rate changes, interest rate changes and inflation in oil price forecast returns for stocks in Tehran Stock Exchange are used. The study concludes that dynamic models with time-varying parameters are more accurate in predicting returns in the Stock Exchange, in a way that the MAFE and MSFE models, DMA, DMS which have complete dynamics are more efficient than other models. As a consequence, it can be said that the variability of the coefficients of the variables in the TVP model cannot lead to higher accuracy in predicting returns in the Stock Exchange, and it is required that the dynamics of time-varying variables of the model used to predict stock returns be taken into consideration.

Due to the fact that assets are recorded at their historical value and they may include unrealized gains (losses), managers may manipulate earnings through the sale of these assets and provide financial information which is not accurate and reliable. The aim of this study is to investigate the relationship between income from asset sales, earnings change and leverage of companies listed on Tehran Stock Exchange. The population of this study consists of all companies listed on Tehran Stock Exchange and the sample includes 110 companies for a period of 12 years (2004-2015). Multivariate linear regression analysis is used to test the research hypotheses at the level of 5%. The results show that there is no significant relationship between income from asset sales and earnings change. Also, based on the research results, there is a significant relationship between income from asset sales and financial leverage. In other words, there is a positive relationship between income from asset sales and financial leverage.

In many countries, particularly developing countries, economic reforms, especially privatization, are considered as a strategic approach. The growth of the government decreases the competition in the market, and so, some fields should be privatized in order to create the competition. By moving towards privatization and the changes in competition methods and the presentation of the World Trade, the importance of management accounting tools (MATs) is more pronounced. This research is based on the Contingency Theory that was confirmed in Tehran’s Stock Exchange (TSE). This paper investigates the moderating effect of industry competition (IC) on relationship between privatization, financial performance and using of MATs in TSE. MATs data were collected through questionnaires, the competition data were obtained from financial statements information of 48 firms listed in TSE and privatization data were obtained from privatization organization website (IPO). The results indicate a positive relation between privatization and MATs in firms listed in TSE which industry competition, as a moderator variable, enhances this relation. Considering the general policies of principle 44 to increase the competition, it is used as a moderator variable in this study of this study show that privatized companies, in today’s too competitive situations. The result showed which privatization and Industry Competition lead to the companies use the MATs more than before. Hence these companies be used to more MATs because of industry competition that was established by privatization in TSE. Finally, the variables of the model can explain 93.2% of MATs.