Iranian Journal of Accounting, Auditing and Finance
Volume:3 Issue: 3, Summer 2019

The present study aimed to investigate CEO overconfidence and narcissism on the relationship between social responsibility and financial performance in companies listed on the Tehran Stock Exchange. This research was applied in purpose and was descriptive-correlational in its method. This research's statistical population included all the firms listed in the Tehran Stock Exchange, 147 companies operating in various industries from 2011 to 2016. The hypothesis testing method was performed by the regular regression method using Eviews software. The results showed that there was a positive and significant relationship between social responsibility and financial performance. Furthermore, overconfidence had no significant effect on the relationship between social responsibility and financial performance. Finally, CEO narcissism did not significantly affect the relationship between social responsibility and financial performance.

Resilience is defined as the system's capacity to absorb disturbances while maintaining structure and performance. The present study provides a model for corporate resilience by predicting causal relationships between executive management vision structures, accounting experience, administrative culture and corporate affairs, public performance, and corporate resilience. This study's statistical population was managers and financial experts of the surveyed companies, and a standard questionnaire was used to collect data. After performing the sample data's reliability and validity tests, the relevant analyzes were performed based on the structural modeling approach. The research results showed that accounting experience, administrative culture, corporate affairs, and long-term executive vision significantly affect forecasting financial resilience. But public performance does not have a significant effect on financial resilience forecasting.

We investigate the relationship between CEO ability and accrual quality in the Iraq Stock Exchange. Furthermore, we study how the Islamic State of Iraq and Syria (ISIS) influences the relationship between CEO ability and accrual quality. Using a sample of firms listed on the Iraq Stock Exchange over the years 2012-2018, we show that CEO ability positively affects accrual quality. Moreover, the results indicate that ISIS weakens the relationship between CEO ability and accrual quality.

The present study is concerned about the relationship between governance indicators (control of corruption, government effectiveness, regulatory quality, political stability, voice and accountability, and role of law) and performance (return on assets based book value, return on assets based market value, return on equity based on book value, return on equity based on market value, sales growth rate, net income growth rate, and Tobin’s q ratio) in listed companies on the Tehran Stock Exchange. Data related to firm performance indexes were gathered from 296 listed companies on the Tehran Stock Exchange from 1996 to 2016 by using the systematic elimination method. The data of six-fold governance indicators are computed annually by the World Bank and Heritage Foundation for different countries based on similar criteria. Moreover, the resultant statistical tests from panel data methods and multiple regression were administered using data analysis and R Software. The study results indicate a positive or inverse significant relationship between six indicators of corruption control, government efficiency, quality of law, political stability, right to comment, law rule, and listed companies' performance on the Tehran Stock Exchange. This study is innovative. It analyzes the relationship between all governance indicators and various firm performance measurements, which is not assessed in the Iranian and international studies. Hence, this study can contribute considerably to the development of knowledge in this field.

This study examines the 'The impact of litigation risk and auditor size on auditor conservatism and auditor conservatism on information asymmetry.' This study is applied research, and its design is quasi-experimental, using a post-event approach. The statistical population of the study is the companies listed on the Tehran Stock Exchange. The required information was extracted from audited financial statements of 112 companies from 2010 through 2016. The results of this study showed that there is a significant relationship between litigation risk, auditor’s size, and auditor’s conservatism. But there is no significant relationship between auditor’s conservatism and information asymmetry.

In economics, and more specifically in contract theory, signaling refers to the act in which one party sends some meaningful information about itself to the other party. Signaling derives from the theory of information asymmetry, which implies a conflict of interest between managers and investors, which reduces the moderating role of dividends; because managers have asymmetric information compared to the investors on the earnings and future dividend policies. This study investigates the relationship between dividends paid and future earnings by considering the free cash flow. For this purpose, 82 companies listed on the stock exchange from 2002 to 2014 were examined. Using the simultaneous equation method, this study finds that increasing the rate of change in future earnings will reduce the annual rate of change in dividends paid. It is also found that the effect of changes in future earnings on changes in dividends is not a reason for the effect of changes in the dividend paid on future earnings.

Considering the importance of the audit objective, which creates reasonable assurance about the financial statements and the importance of the audit process to collect sufficient and adequate audit evidence, the audit quality is considered one of the audit process's main features. Therefore, to improve the audit and review process quality, there is a need for a framework for judging. Using the financial data of 114 companies from different industries from 2012 to 2017, this study analyzes the relationship between audit quality and auditor's follow-up recommendations (emphasis on specific point paragraph) and the relationship between auditors' follow-up recommendations (emphasis on specific point paragraph) and auditors' opinions. The results show that there is a meaningful relationship between the audit quality and the auditors' follow-up recommendations (emphasis on specific point paragraph); this shows that the auditors' greater accuracy and their control on processing financial information provide better and more accurate points on the quality improvement of financial statement reports. Moreover, the results show no significant relationship between auditors' follow-up recommendations (emphasis on specific point paragraphs) and the type of auditor's opinion in the years to come.