logit regression

The purpose of this article was to investigate the issue of price bubbles based on financial reporting in companies listed on the Tehran Stock Exchange in the period before and after the takeover. One of the strategies that is increasing in Iran's capital market during the recent periods due to the privatization program of state-owned industries and the expansion of investment companies as a result, is the takeover strategy. This strategy is among the strategies of companies to increase their competitive position in order to maximize the wealth of shareholders.The purchase and acquisition of companies can be considered as a trading opportunity, and the buyer prevents the decrease of the market share and prevents the entry of a new competitor. In this study, the information related to the transferred companies for the period of 2011-2021 was used. The obtained results have shown that there is a positive relationship between the increase in stock price and takeover, and in the estimated logit regression model, it was observed that a one percent increase in takeover can lead to a 6.5% increase in price and price bubbles. Companies react differently to positive and negative news. Based on this, the results of the test indicate that there is a relationship between takeover and the occurrence of price bubbles, and in companies that have takeovers and changes in ownership, the probability of occurrence of price bubbles is higher.

Considering the concerns that investors have about the return of principal and capital gains and the consequences and costs that bankruptcy can cause for companies and the country's economy and other individuals and institutions, the design of a reliable model In order to predict the probability of bankruptcy of companies, it seems necessary to guide decision makers such as investment companies, banks and the government.In this research, the artificial neural network method and the logit regression method were used to predict the bankruptcy of a number of companies admitted to the Tehran Stock Exchange during the years 2015 to 2019, and the results were compared with the logit regression method. The overall prediction accuracy of the artificial neural network method for each of the years t, t-1, t-2 and t-3 is equal to 96.55%, 96.55%, 92.24% and 24/2 respectively. 92% and for the logit regression method for the same years, it is 94%, 94.82%, 90.51% and 87.06% respectively, which showed that the artificial neural network method has a higher accuracy than the logit regression method. is. Therefore, it can be concluded that the artificial neural network method provides a more appropriate tool for predicting the bankruptcy of companies.

The purpose of this study was to investigate the moderating role of managers' narcissism in explaining the relationship between internal auditor competence and the possibility of exposing the weakness of internal control.

The current research is applicable in terms of purpose, descriptive- analytical in terms of inference method and in terms of the overall research plan is events/retrospective. In the present study, the collected data of 144 companies during the years 2012 to 2018 have been analyzed through logit regression and stata software.

The professional competence, experience and the level of education of the internal auditor are the features of the internal auditor’s competence that have been studied in this research. Furthermore, the financial leverage, asset returns, sales growth, board size, duality of duties of the CEO, major auditing firm, the company’s activities life, company size, profit and loss index, operating cash flow and inventory ratio, as control variables have entered the research model.

After ensuring the acceptable fit of the measurement and structural patterns of the research, the results of the hypothesis test using Logit panel regression method with random effects indicates that managers’ narcissism positively moderates the relationship between internal auditors’ professional competence and the possibility of disclosure of the weakness of internal control, the work experience of internal auditors and the possibility of the disclosure of internal control weakness, but it has no effect on the relationship between the level of education of internal auditors and the possibility of the disclosure of the internal control weakness.

Contribution: 

The almost uncovered area of research, which is related to internal control inefficiencies, examines and the filling of vacuum in the theory of accounting helps to discover the effects of traits and internal audit characteristics on access to related goals with the impact of narcissism.

The occurrence of mistakes in accounting is inevitable and factors such as diversity and complexity of economic issues, high volume of work, fatigue, etc. increase the possibility of mistakes. Also, due to the continuous changes that take place in the economic, social, etc. conditions, it may be necessary to make changes in accounting principles and methods in order to harmonize the business unit with the new conditions, all of which result in the re-presentation of financial statements. A subject that has received a lot of attention as a result of reporting scandals such as Enron and... The purpose of this research is to present the expanded model of Banish in companies admitted to the Tehran Stock Exchange between 2009 and 2019. Also, the data of 265 companies were used using Benish model and logit regression and genetic algorithm were also used to estimate the improvement of the prediction model. The results of the research indicate that, based on the confusion matrix, among the predictive models for re-presentation of financial statements, the accuracy and efficiency of the improved Benish model with the genetic algorithm has a total prediction accuracy of 73.21%, which has the highest predictive power in The comparison with the original Benish model and the presented model was with logit regression.

Auditing as one of the mechanisms of corporate governance plays an important role in identifying financial crises. In accordance with auditing standards, the auditor is required to disclose any uncertainties that are relevant to the firm's ability to continue operating in the future. The purpose of the present study is to describe the causes of business failure by disclosing the auditor's report. For this purpose, we use indicators such as the type of auditor's statement, disclosure of related party transactions, disclosure of weak internal controls, disclosure of negative working capital, uncertainty of continuing activity, and disclosure of litigation against the Company in predicting failed companies. Was done. In this regard, the data of 103 screening companies accepted in Tehran Stock Exchange for the years 2007-2018 were used. Logit regression was used to test the research hypotheses. The results indicate that the auditor's modest opinion, disclosure of weaknesses in internal controls, auditor's opinion of continued activity, disclosure of lawsuits against the company have a positive effect on the business unit's failure. Another finding of the study is that the auditor's statement that the working capital was negative and the disclosure of transactions with related parties in the audit report did not affect the entity's failure.

The prediction of financial crises is widely discussed due to its importance in studies and articles in the field of accounting. The purpose of this study is to provide a model based on free and operational cash flows to predict financial crises in the Tehran Stock Exchange, since free cash flows are the main and influential factor in the model, so according to current theory Jensen's has first tested the validity of the theory in order to examine its validity in the Iranian capital market. Then, based on the financial ratios based on free and operating cash flows, the final research model is presented. The research data were obtained using samples including 1560 observations from 260 companies from 2008 to 2017. These data are calculated according to international accounting standards. In this study, regression of the combined panel was used to examine the validity of free cash flows and Logit regression was used to predict financial crises. The research findings show that the assumptions of free cash flows in the Iranian capital market have a high validity, so Jensen's theory has a practical application in Iran. In addition, the final research model identifies companies' financial crises in the Iranian capital market in a proper manner and has a higher accuracy compared to the current Altman model. Based on the results of this study, it can be said that in the Iranian capital market, models based on free cash flows have more explanatory power in relation to predicting financial crises.

Firms with prospective strategy have a higher risk and lower financial stability than firms with a defensive strategy, which can affect the audit process. Since such companies are exposed to greater risk of auditing, their audit operations are conducted with a higher degree of conservatism. Applying more conservatism to prospective companies will increase the volume of auditing operations and further professional uncertainty in making audit judgments, which may ultimately influence the type of auditor's opinion, the number of audit report clauses, and the auditor's fees. Therefore, the main purpose of this study is to investigate the relationship between the type of business strategy of the firm with the auditor's report (type of comment and number of auditor's report) and audit fees with emphasis on both prospective and defensive strategies.

To achieve the purpose of the study, 127 companies listed in the Tehran Stock Exchange during 2011-2017 were selected. The research hypotheses were tested on the basis of multiple linear regression and logit regression.

Findings show that there is a significant negative relationship between aggressive (forward) strategy and unadjusted audit report (acceptable). In fact, adjusted audit reports (contingent, declined and non-commented) are more likely to be issued by aggressive (prospective) companies. Also, there is a positive and significant relationship between defensive strategy and unadjusted audit report. That is, adjusted audit reports (conditional, declined, and non-commented) are less likely to be issued by companies with a defensive strategy. The results also show that there is a positive and significant relationship between aggressive (forward) strategy and the number of audit report bets but there is a negative and significant relationship between defensive strategy and the number of audit report bets. The results show that there is a positive and significant relationship between aggressive strategy and audit fee, but there is a negative and significant relationship between defensive strategy and audit fee.

The findings of this study indicate that business strategies can be one of the factors that auditors consider in their audit reporting and remuneration strategies. Such a finding can be helpful to corporate auditors and managers.

Executive overconfidence is one of the consequences of positive expectations about future performance, therefore failure to reach the specified goals may increase managers tendency to fraudulent financial reports. The purpose of this study is to analyze the behavior of executive overconfident in fraudulent companies listed on the Tehran Stock Exchange. In this regard, capital expenditure and overinvestment are used as the indicators of executive overconfidence. Auditing standards are used to measure fraudulent companies. The study sample is 99 companies listed on the Tehran Stock Exchange (990 years - the company), including 334 fraud samples and 334 instances of non-fraud samples to control over 2005-2014 period. Due to the nature of the dependent variable and the homogeneity of the sample, Logit regression method is used to test the hypotheses. According to the results of this study, executive overconfidence based on capital expenditure is higher in fraudulent companies. Also, the result of the second hypothesis rejection is based on overinvestment criteria.