فصلنامه دانش حسابداری
پیاپی 47 (زمستان 1400)

Because conservatism in financial statements is applied primarily through the adjustment of accruals, conservative research has largely examined the impact of aspects of this feature on changes in accruals. The role of accruals is primarily to improve cash flow fluctuations. In conservative research based on accruals, typically several economic components of accruals such as sales growth, gross assets, machinery and equipment in the Jones model, and components such as multi-period cash flows in the Dichau and Dicho models Used. Bushman et al. And Allen et al. Improved the two models by combining the above two models. Byzalov and Basu also helped improve these models by breaking down bad news indicators into more detailed components. Therefore, the purpose of this study is to investigate the effect of bad news from other components of company sales, such as product group sales, fourth quarter sales and the company's share of industry, on conditional conservatism in accrual-based models 

To achieve the objectives of this research, data from 144 companies from manufacturing companies listed on the Tehran Stock Exchange for 11 years from 2006 to 2016 using Rahavardnovin software, Kodal site and the site of research, development and Islamic studies of the stock exchange, it was gathered. And the relationships between the research variables were analyzed using panel data and the generalized least squares method. 

The findings of this study showed that the decrease in sales of the product group and the decrease in sales in the fourth quarter increase conservatism in accruals, because the decrease in these indicators gives signals to the company about the possibility of future sales decline. ; But the decline in the company's share of industry sales has not had a significant effect on the conservative behavior of managers and accountants. 

In evaluating working capital accruals, managers, in addition to the bad news caused by the decline in the company's overall sales, also pay attention to the analysis of sales decline of each product group in the evaluation of accruals, and if they see a decrease in sales in some product groups, They evaluate their inventory of these products for the next period with more conservatism. Also, if sales are declining for the fourth quarter, it is likely that the decline will continue in the next financial period, resulting in a lack of timely sale of available inventories at the end of the fiscal year, and the company is likely to devalue inventories. On the other hand, it seems that due to the lack of strong competition in the Iranian market and the limited available markets, managers pay more attention to sales changes and do not pay attention to changes in sales share in the industry, as a benchmark and predictive indicator of the future.

Companies that are valued more than their real value, do not have the ability to achieve the expected level of performance, proportionate with the stock market price and managers due to the many benefits of very high stock prices, such as easy access to capital market funds, higher job security and more rewards, instead of correcting equity overvaluation, they use various techniques such as earnings management to support incorrect stock values. Certainly, in the years when the company's financial situation is unfavorable and there are signs of moving towards a financial crisis for the managers, the incentive to earning management increases in order to hide the poor performance of the company and take measures to justify the stock incorrect prices. Given the importance of the subject of equity overvaluation and its consequences, the main purpose of this study was to investigate the relationship between equity overvaluation and company's financial crisis and the role of earnings management on this relationship.

According to the purpose of the study, this research is applied research. To investigate the subject, data of 104 companies listed in the Tehran Stock Exchange for the period from 2011 to 2020 was selected. Data analysis and hypotheses testing was performed using Panel Generalized Linear Models and logistic regression model by R software. Equity overvaluation based on the Rhodes-Kropff et al. (2005) method are measured and companies in financial crisis based on the existence of each of the three conditions: 3 consecutive years of loss, a 40% reduction in dividends over the previous year and subject to Article 141 of the Commercial low, was selected. 

The results show that there is a positive and significant relationship between equity overvaluation and financial crisis. In other words, equity overvaluation (increasing evaluation errors) increases the risk of corporate financial crisis. Other findings suggest that earnings management does not moderate the relationship between equity overvaluation and financial crisis. 

Given that the equity overvaluation is not permanent and the stock market value will move towards the real value, in the end, the equity overvaluation will lead to operating loss, net loss and consecutive retained loss for the company and will cause the company will not be able to have the necessary cash resources for dividends and will face a reduction in dividends and eventually, based on the losses, more than half of the company's capital will be lost. So, when the stock market value is above its real value and the company is not able to provide the performance needed to justify its stock market value, Can reduce the company's profitability and increase likelihood of inability to repay interest and debt, lower corporate cash inflow from total interest expense for long-term debt, losing or being negative Special value of the company which in fact each of these, indicates the company's entry into the financial crisis that in the last and most acute phase of the financial crisis, it can lead to bankruptcy of companies.

Comparability is a basic characteristic of financial statements that enables users to identify similarities in and differences between two sets of economic phenomena. Given that comparability is different from other qualitative characteristics of financial statements, doubt remains whether the existing evidence between corporate social responsibility and financial reporting quality continues to persist in the context of financial statements comparability. Positive corporate social responsibility performance reflects managers' ethics and integrity from the stakeholder theory perspective. On this basis, firms with positive corporate social responsibility performance have high compliance incentives to adhere to accounting standards and tend to provide comparable financial statements. The main aim of this study is to determine the relationship between corporate social responsibility performance and financial statements comparability, with an emphasis on the role of institutional ownership among Tehran Stock Exchange (TSE) listed companies using a statistical sample of 185 firms for the period of 2011-2020.

In this study, the comparability of financial statements is measured based on a Babaei et al (2021) empirical methodology based on relative valuation theory and corporate social responsibility performance is also measured from the model of El Ghoul etal. (2011) with the approach of Wang etal. (2020). In this study, multiple regression and Kramer Z test have been used to test the research hypotheses. 

The results of this study show that the financial statements comparability significantly increases by enhancing positive corporate social responsibility performance, and also this positive relation is more intense for high institutional ownership firms. The findings also show a negative relationship between inferior adverse social responsibility performance and financial statements comparability, and also this negative relation is more intense for high institutional ownership firms. Also, the results of the research have been confirmed by using the De Franco et al (2011) measurement model of the financial statements comparability in the robustness tests of the findings.

This study adds to the accounting literature by identifying the determinants of financial statements comparability. In summary, our findings are consistent with the notion that firms with positive corporate social responsibility performance (adverse corporate social responsibility performance) tend to have high (minimal) compliance incentives to adhere to accounting standards and are less (often) involved in managerial opportunistic activities, thereby resulting in high (low) financial statements comparability. Also, institutional owners, as one of the most important mechanisms of corporate governance, strengthens the relationship between corporate social responsibility and financial statements comparability. Positive corporate social responsibility performance can also establish or maintain a positive reputation for firms and prevent them from engaging in reputation-damaging activities.

Separating ownership and management creates the problem of agency. Consequently, this information asymmetry between managers and shareholders brings the need for a conservative approach in financial reporting. In this way, shareholders use this approach to mitigate the effects of this information asymmetry. Hence, this study aims to investigate the relationship between conservatism in financial reporting and the sensitivity of compensation performance of managers. Also, this study identifies and examine the effect of conservatism in financial reporting on the effectiveness of the executive manager's compensation contracts in the Iran setting.

The research population selected through the systematic elimination method. The study population consists of 104 Iranian companies listed on the Tehran Stock Exchange (TSE) during the years 2011 to 2019. Research hypotheses and links between variables tested using the panel data. Also, the multivariate regression model is used for hypothesis testing.

The results indicate that there is a negative and significant relationship between conservatism in financial reporting and the level and sensitivity of executive manager's compensation. Also, results show no significant relationship between the interactive effect of the true performance of accounting and conservatism in financial reporting with the compensation-performance level of executive's managers. Findings show there is a positive and significant relationship between the interactive effect of conservatism and the sensitivity of the true performance of accounting based on book value with the sensitivity of executive manager's compensation. The results indicate that there is a positive and significant relationship between the interaction effect of stock returns and conservatism with the level of managers' compensation. There is also a positive and significant relationship between the interaction effect of conservatism and changes in stock returns with the sensitivity of managers' compensation-performance based on market value. Information asymmetry leads to conservatism in financial reporting as a solution to reduce the cost of agency. Hence, corporate financial reporting stakeholders demand conservatism to reduce agency costs by reducing information asymmetry and facilitate corporate governance.

The results of the current study extend the knowledge of previous studies. The results of this study indicate that conservatism in financial reporting can be effective in reducing information risks and the problems of agency.  Therefore, conservatism in financial reporting can be considered an effective contractual mechanism. Accordingly, conservatism can limit the opportunistic behaviors of executive managers. Conservatism in financial reporting allows firms to CEO compensation more closely to corporate performance. Also, shareholders consider conservatism as a governance mechanism. They should increase the level of conservatism to increase the performance-compensation sensitivity of executives. Hence, conservatism in financial reporting is a tool that a board of directors can use to monitor and control CEOs' investment decisions; therefore, high-quality accounting information leads to increased investment efficiency by eliminating information asymmetry between managers and investors.Based on the results of this study, we propose to use a conservative mechanism in financial reporting to protect the interests of shareholders against the opportunism of managers in an economic environment such as Iran, in which the state affects the economy. This paper is the first study of its type in Iran.

Understanding the importance of earnings management is essential for internal and external users of financial statements. Some see this as a legal practice, while others see it as illegal manipulation of profits. Iran is no exception to the damage and growth of this economic phenomenon, so the first thing that crystallizes in the minds of some members of society is the question: What are the factors affecting the earnings management and ways to prevent or reduce earnings management? So The purpose of this study is to provide a reductive model of earnings management according to the conditions of Iran.

In this regard, the present study, using the qualitative method of multi-grounded theory through semi-structured interviews with 14 experts in the Iranian accounting profession in 1397-1398 which was selected by theoretical sampling method, the key points raised by them were coded and formatted. Concepts and categories were categorized and finally, succeeded in presenting a decreasing pattern of earnings management.

Based on the results of personality characteristics, business characteristics and motivation of managers causal and effective conditions on profit management reduction methods were identified. Also, the legal system, human resource management, the weakness of the accounting system, specialized knowledge and cultural factors of the context, and environmental factors were among the intervening conditions. Finally, the methods of profit management reduction include 7 categories, auditing quality control, strengthening corporate governance, updating the structure of laws and standards, strengthening and controlling the financial reporting framework, strengthening training, disciplinary discussions and classification monitoring and its consequences in the form of earnings management methods were identified and presented. One of the achievements of this research and the proposed model for reducing earnings management is that in this model, the concept of assembly time management is introduced, which is another way to perform earnings management. Time management of assemblies includes sub-categories such as assembly breathing, assembly relocation, assembly assembly in the last days and playing with shareholders' dividends, for later payment of dividends and using it elsewhere. Of course, It is possible that companies have been created in Iran due to the specific conditions of Iran.

earnings management has a very important impact on the company, the profession and the macroeconomic level. The role of financial statements is to provide a fair and equitable view of the situation and performance of the business unit. In practice, however, there may be opportunities to affect accounting information through the use of various methods and techniques, resulting in financial statements losing their performance and misrepresenting accounting information Manipulate profits. So, with the correct application of strategies and contextual conditions, it can be said that negative earnings management in companies can be reduced. Previous research has been done on modeling earnings management with quantitative methods, and this is not ineffective in terms of both knowledge and theoretical development in the field of earnings management.  Therefore, based on the findings of the present study, it can be stated that the model of the present study is used to educate and increase public awareness, especially of students in related fields, and more serious proceedings are taken in this regard.

Financial reporting is the end product of the financial reporting process. Financial reporting objectives are related to the information needs and demands of users. The main purpose of financial reporting is to express the economic effects of financial events and operations on the status and performance of organizations to help outsiders to make financial decisions in relation to the relevant unit. Financial reporting has changed dramatically in recent decades. Increased competition and technological advances have created many changes. The development of new technology and more sophisticated performance metrics has increased the amount and quality of information produced by companies. Since each segment of the supply chain plays an important role in supporting financial reporting, all areas of the chain must be of high quality to lead to high quality financial reporting and focus on quality by emphasizing corporate governance mechanisms. .. has become more. Attention to the financial reporting supply chain to increase the quality and speed of financial reporting in the capital market led to this study to prioritize the factors affecting the financial reporting supply chain

The method of the present study is mixed and has been performed as a sequential exploratory design. In the qualitative section, by obtaining the opinions of experts, the effective factors of the financial reporting supply chain have been obtained using the qualitative analysis method of the theme. Then, in a small part, after extracting the main components, the researcher proceeded to rank the components from the perspective of the same people using the TOPSIS technique. 

Factors affecting the financial reporting supply chain are as follows:Accountability and demand, knowledge and independence of the board of directors, technology (use of information technology), auditing organization, unification of goals of institutions, advanced software, restrictive rules, Executive bodies, supervisors, auditors, expertise and training, laws and policies, professional institutions and new systems, lack of transparency and lack of supervision, economic conditions of the countryThe criteria for prioritizing the factors affecting the supply chain of financial reporting are as follows:According to the results of TOPSIS technique, the criterion of responsiveness and demand for information with the most negative ideal distance won the first place, the executive devices (auditing organization, etc.) won the second place, advanced software the third place and the criterion of technology. Won the last rank.

Considering the importance of the supply chain of companies financial reporting which has an important role in supporting financial reporting and its effect on gaining the trust of investors and capital market participants and increasing the quality of financial reporting findings in addition to developing theoretical foundations of supply chain Financial reporting contains valuable concepts for use by investors, creditors, stockbrokers, corporate executives in making useful decisions, as well as professional references about its importance, and can provide a good platform for future research. In this case, it is for other educational and research centers and consequently increases the quality and transparency of financial reporting and ultimately improves the supply chain of financial reporting.

Behavioral finance is one of the most important financial issues and the attention of financial researchers in this field is increasing. Because errors and biases occur due to human tendency to shortcuts and overemphasis on experience, unfounded feelings, delusions and finger calculations, and in general distance from reality, although in some cases these biases are possible. May have positive results, but the probability of negative results is very high. Among the types of behavioral biases, mental accounting is an economic concept that has been less studied. The purpose of this study is to investigate the effect of mental accounting on the financing and investment policies of companies listed on the Tehran Stock Exchange 

The statistical population of the research includes 14 top investment companies during the period 2013-2019. In this study, the variables of financial leverage, cash dividend, debt ratio, debt maturity and the ratio of long-term debt to equity as indicators of financing policy and the variables of tangible fixed assets changes, changes in non-current assets, changes in capital - Long-term investments and changes in total fixed assets and long-term investments were used as investment policy indicators. 

The results show that investors' mental accounting has a significant inverse effect on financial leverage, cash dividends and a direct effect on debt ratio, debt maturity and the ratio of long-term debt to equity as indicators of corporate financing policy. In addition, the results showed that investor mental accounting has an adverse effect on changes in tangible fixed assets, changes in non-current assets, changes in long-term investments, and changes in total fixed assets and long-term investments as indicators of corporate investment policy. 

The results indicate that the mental accounting of investors has a significant effect on the financing and investment policies of companies listed on the Tehran Stock Exchange. As a result, the behavioral and emotional conditions of investors must be taken into account because investors are not entirely rational and make the wrong decisions in terms of emotions in the decision-making process. Investor bias causes stock prices to deviate from real prices and leads to incorrect stock pricing. Improper pricing of companies' shares affects financing decisions and, consequently, the company's investment decisions, and causes the decisions of the company's governing bodies to deviate from the optimal investment decisions.

Institutional investors, due to the ownership of a significant portion of the companies' shares, have a significant influence on investable companies and are able to influence the process of these companies. They have resources to influence and monitor managers. This could lead to a focus on maximizing the long-term value of the company rather than short-term profitability goals. Also the managers of firms with high debts are involved in manipulation of earning to portray a better picture of their financial position. Therefore, the present study examines the relationship between institutional ownership stability and earnings management by considering the company's financial leverage. 

To achieve the purpose of present research, regression model wis used to test two hypotheses. The sample employed in this study consists of the 140 companies listed in Tehran Stock Exchange for the period 2014-2019. This study has three groups of variables. The first is the independent variable, namely, institutional ownership stability. he second group is the dependent variable, which is earnings management and financial leverage. Our measure of earnings management is based on the Jonse(1991) model. The third group consists of the control variables consis size. liquidity and loss. 

In general, the study finds that institutional ownership stability not improves the earnings management. In adition  the resulth  shows that relationship between institutional ownership stability and earnings management is negative. while the variables of the simultaneous effects of institutional ownership sustainability and financial leverage on earnings management are not significant. 

This study investigates how institutional ownership stability influences earnings management the results of data analysis indicate that institutional investors holding stable equity stakes play an important monitoring role in reducing earnings management. We also document that the greater the stability of institutional ownership, the lesser the earning management in companies listed in Tehran Stock Exchange. Our findings of the negative association between real earnings management and institutional ownership stability also indicate that firms with more stable ownership are engaged in lesser sales manipulation and overproduction. Also the findings reveal that Corporate financial leverage has not a impact in relationship between institutional ownership stability and earnings management.