فصلنامه دانش حسابداری مالی
سال هفتم شماره 3 (پیاپی 26، پاییز 1399)

The purpose of the present study is to examine the impact of social conservatism on the uncertainty of independent auditors 'professionalism which can have a positive impact on auditors' judgment and decision making.

This research is a descriptive and survey research and the sample is 466 independent auditors of the Audit Organization, the Accounting Department of Iran and the member organizations of the Iranian Association of Certified Public Accountants. Structural equation modeling using partial least squares method was used to test the hypotheses.

Test evidence suggests that social conservatism increases auditors' professional skepticism and its components, including questioning minds, Suspension of judgment, Searching for Knowledge,Understanding Interpersonal Relationship , self-confidence and Self – Determination.

The results of this study show that the psychological characteristics of auditors in judging and decision making are among the influential factors.

Contribution: 

The results of this study provide useful information for auditing policy makers and national regulatory bodies about the impact of social conservatism on auditors' professional uncertainty and extend the results of behavioral research in the field of auditing.

In the event studies, the measurement of abnormal performance due to specific events in the long run is done according to different methods. One of them is the buy and hold approach. This approach uses match firm and reference portfolio. The aim of this study is to evaluate the buy-and-hold approach in performance measurement with emphasis on long-term horizon.

In this study, based on the data of 131 firms in the period of 1396-1381, the methods of the match firm and reference portfolio were assessed through simulation.

Findings show that increasing the time interval from one year to three and five years will lead to an appropriate imbalance between the specification and the power of the tests to be examined.

following the event, if the long-run performance appraisal of stock prices, the one-year period, and to measure abnormal returns, the match firm method should be taken into account. The results of this study also indicate that use of accounting and financial variables in determining match firm and reference portfolio will lead to specification and power of the tests used.

Contribution: 

The findings can be used as a basis for evaluating long-run stock performance

The purpose of this study is to have policy holders on utility management with Structural Equation Modeling approach.

In this study, 87 companies were selected from the companies listed in Tehran Stock Exchange during 2005-2018 as statistical sample. Structural equation approach has also been used to test the hypotheses.

The results show that political costs have a negative effect on real earnings management. However, this intensity is not statistically significant.

The results also show that profitability ratio and leverage ratio have a positive and significant effect on actual earnings management.

Contributions: 

The impact of political costs on actual earnings management can provide future users and researchers with a better understanding of the factors affecting corporate earnings management.

Financial statements approved by the auditor are the most important source of information for investors. Therefore, determining the audit fee with the company management decision is very important. Management also has characteristics that are considered in negotiation for audit fees. The purpose of this study is to investigate the effect of managers’ ability and corporate governance mechanisms on the relationship between managerial overconfidence and audit fees.

The research hypotheses were tested by collecting data from 124 companies listed in Tehran Stock Exchange and Farabours during the period 2014-2019. Management ability was measured using Demirjian et al.’s (2012) Data Envelopment Analysis (DEA) model and managerial overconfidence was also measured through the index of excess investment in the assets of Ahmed and Duelman’s (2013) model and corporate governance was also measured by the model introduced by Cassell et al. (2012) for the board of directors and audit committee  

According to research findings, management ability has a negative and significant effect on the relationship between managerial overconfidence and audit fees. But the effect of the board of directors and audit committee on the relationship between managerial overconfidence and audit fees were not significant.

This study revealed that managers with higher ability are more likely to reduce the risk of auditing , even in firms with managerial confidence .

Contribution: 

Since management overconfidence increases the risk of optimal decisions in the company, therefore by examining the significant impact of management ability and corporate governance mechanisms on audit fees in companies with overconfident managers, this study adds a new perspective to the literature of management characteristics and management relationships with auditor through audit fees.

The first aim of this study is to evaluate the Basu and the Ball and Shivakumar models to measuring the accounting conservatism and to determine which of the existing models in Iran has more explanatory power in accounting conservatism. The second aim is to modify the two models by identifying the other effective factors on the accounting conservatism and the final goal is the presenting the measurement pattern of accounting conservatism separatelyin each model and comparing the results.

Research is a ex-post facto research and the sample consists of 156 companies during the period of eleven years from 2009 until 2019 with panel data and fixed effects model.

It was observed among these two models, The Ball and Shivakumar model has more explanatory power in measuring accounting conservatism in sample firms.By comparing the results of the models re-test by intering different independent and control variables, it was concluded that the Ball and Shivakumar model still had more explanatory power in measuring accounting conservatism.

The Ball and Shivakumar model According to factors and variables are related to Measuring accounting conservatism has been introduced as a better patternfor measuring accounting conservatism.

Contribution: 

Thisstudy reveals which of the two models of the Basu and the Ball and Shivakumar, offers more explanatory power and a better pattern for measuring accounting conservatism and the present study for this reason has informational content.

According to group dynamics theory, individual behavior is influenced by group characteristics. Group dynamics can influence decisions and improve group thinking. Gender diversity as one of the group dynamics mechanisms in the board and audit committee, can lead to the ability to maintain and enhance members' intellectual independence and expand the culture of group thinking by improving heterogeneity and ultimately improving the ability of members of the leadership system to oversee financial reporting. The purpose of this study was to investigate the impact of the presence of at least one female representative on the directors’ board and the audit committee on the financial restatement with emphasis on group dynamics theory in firms listed on the Tehran stock exchange during the years 2014-2018.

The data collection method was archived and a sample of 152 companies (760 observation) was selected and their data were analyzed using Logit regression analysis.

Findings suggest that the presence of at least one female representative on the audit committee can reduce the financial restatement. But research evidence suggests that the presence of women on the board of directors does not have a significant effect on reducing the financial restatement.

The presence of women in the corporate governance system, especially the audit committee, improves the financial reporting quality.

Contribution:

 These findings are in line with group dynamics theory and group thinking.

The purpose of this paper is to review the relationship between the readability of financial reports and stock market liquidity in the companies listed at Tehran stock exchange.

This research is applied in terms of purpose and the information of 100 manufacturing companies during the 2008 to 2018 has been used. Structural equation and multiple regression approaches were used to analyze the findings.

The findings show that there is a direct and significant relation between the readability of the financial reports and stock market liquidity. In this sense, by decreasing the readability stock market liquidity is decreased. The results also show that the different measures of liquidityand readability in different industries are statistically significant differences with each other.

Increasing the awareness of the participants from publication of transparent and transparent information has special importance and Encouraging companies to publish the readable information is an important step to increase the information transparency and will increase the liquidity and the allocation efficiency of the capital market.

Contribution: 

The contribution of this research is that different criteria for stock readability and liquidity have been studied and for this purpose, structural equation modeling with partial least squares approach has been used. Also, to consider the effect of panel data, the generalized least squares approach is generalized, and to investigate the interaction between readability and liquidity, the generalized method of moments approach (by instrumental variables) is used. Finally, the readability and liquidity of different industries are compared.