International Journal of Finance and Managerial Accounting
Volume:8 Issue: 29, Spring 2023

Financial misinformation is now largely categorized as a major concern by various companies and businesses worldwide and has called into attention the vital importance of quality information. Access to this information can facilitate the means for effective communication between companies and investor communities in matters of assessment and decision making. Accordingly, the present study addresses this issue from the unique perspective of involving earnings volatility and cash flows in estimating information disclosure quality for investor decision, thereby exposing a novel branch of this field as well as a new outlook on the role of quality. Data on companies listed in the Tehran Stock Exchange were extracted from the Stock Exchange Database, Rahavard Novin Dataset, and Codal System, for the fiscal period from 2008-2017, concerning predefined inclusion criteria. As the final results from both proposed models suggest, disclosure quality wielded a significantly positive impact on the accuracy of earnings forecasting and influenced investors' decisions. Other findings indicate that the accrual part of earnings volatility in the short term has been able to influence the effect of disclosure quality on investors' decisions. In the final analysis, it was revealed that reducing the earnings volatility relative to cash flows strengthens the effect of disclosure quality on forecast accuracy and thereby increases earnings information.

The objective of the present study was to enhance and improve the ethical decision-making framework in the certified public accountants’ association. The statistical population consisted of eight experts in the field of accounting, which were selected by a purposeful and judgmental method. Therefore, first-class information obtained from semi-structured interviews along with information extracted from the literature were collected in a combined approach and analyzed by Q-factor analysis and ranking index. The results indicated that personal factors (e.g., religious beliefs, personal characteristics, work experience, and self-supervision culture), professional factors (e.g., common financial benefits, work motivation, job position, interpersonal relationships, organizational misconduct, executive accuracy, and enhancement of performance), organizational factors (e.g., regulatory patterns, workplace ethics, type of organizational leadership, reward and punishment system, control structure, and organizational culture), and finally external factors (e.g., ethical codes, economic conditions, family status, and university education) are of the most important and influential factors on ethical decision-making in the certified public accountants’ association.

Since insurance is one of the most important and basic industries in the country, managerial evaluation and creating functional insight of companies in the country's insurance industry is of special importance. In this research, in order to achieve this insight, the dual effect of marketing and profit creation in insurance companies has been investigated using the network data envelopment analysis approach in the three periods of 1396 to 1398. In this approach, modified slack-based measure is selected due to the non-radial nature of the data and the existence of negative data Based on this, the marketing performance and profitability of 20 insurance companies have been examined and the efficiency of the companies has been calculated. In order to be aware of the benefits of scale returns, the efficiency of the scale has been calculated as well. The results show that in the three periods studied, Asia, Parsian, Dey, Pasargad, Kowsar and Ta'avon insurance company were fully efficient and Novin Insurance Company had the lowest efficiency. In addition, the results indicate that Dey insurance company has a constant returns to scale, Karafarin, Razi, Mellat, Novin, Mihan, Ma, Ta’avon, Sarmad and bime tejarat nou insurance company had increasing returns to scale And Asia, Kowsar and Moallem insurance company had decreasing returns to scale and in periods when companies had constant returns to scale, they acted efficiently.

A growing body of evidence suggests that financial literacy plays an important role in financial well-being, and that differences in financial knowledge acquired early in life can explain a significant role in Financial capacity and Savings Behavior in Adulthood life.The purpose of this study is to investigate the effect of financial literacy on Financial capacity and Savings Behavior. according to this, 350 Active real investors of Tehran Stock Exchange were selected by simple random sampling. This research is an applied research method. The method of collecting descriptive information is a survey type of qualitative research and the tools used in the research are standard questionnaires. In this research, structural equation model with partial least squares approach (PLS) has been used to confirm the relationship between variables. The results showed that financial literacy has a positive and significant effect on financial capacity and savings behavior.Keywords: financial literacy, Financial capacity , Savings Behavior

This study predicts Price of stocks in the short term by using the analysis of investors' opinions of the social network. The predictability of stock markets, due to having a complex, dynamic and nonlinear system that it has always been one of the challenges for researchers. The effect of users' feelings on the social network and its combination with 20 technical indicators on the accuracy of stock price forecasting. The study period is from the beginning of April 2016 to the end of March 2017 (two years). To access sufficient data, a sample of 14 active companies that had the most comments and posts. Data mining of technical indicators was performed and support vector regression was used to predict. The results show that the use of technical indicators is more accurate compared to combining it with the aggregation of users' emotions and has less RMSE errors. The number of comments has a significant correlation and the results of Granger causality test showed that it is possible to use the aggregation of users' daily emotions to predict stock prices.

Identifying the components of the safety cost enables the management of safety expenditures. Safety management training through accident is not desirable.Paying attention to the safety cost, in addition to increasing productivity, reducing occupational hazards and creating a healthy environment, leads to guide and managing of safety costs in true and assigned purpose. The present study is applied research in terms of nature and purpose and based on the way of data collection is a field research. The statistical population of the study consisted of 12 safety experts who were selected by convenience sampling method and used a triangular fuzzy AHP 9-Questionnaire. The current research approach is forward-looking and 13 effective components of the cost of safety at gas refineries are extracted based on library studies. A stellar model consisting of the top 5 components of safety cost is presented. Superior safety components that comprise more than 50% of safety costs include prevention of: explosion and fire, human error, electrical and other energy hazards, high-pressure line hazards and equipment and machinery hazards. Focusing on 5 factors instead of 13 factors and smart solutions based on the detailed components of the superior factors will be the key to effective planning and management of safety cost.

Paying attention to ethical principles and behavioral characteristics in the area of accounting and financial reporting in a way that leads to the expansion of honest reporting is growing. In this regard, the present study is an attempt to investigate the factors such as mental health, perfectionism and timely performing of accountants on honest financial reporting. The research data were obtained by using relevant questionnaires. The statistical sample of the study was 350 accountants of companies listed on the Tehran Stock Exchange in 2020. The research hypotheses were tested by structural equation modeling in PLS software. According to the results of the study, mental health and perfectionism are effective in providing timely information and honest financial reporting, and the effect of timely doing things on honest reporting has not been confirmed. managements should make arrangements to improve the level of mental health and create a sense of perfectionism in their accountants so that they can be more confident to improve the quality of financial reports.

The brand of banks as one of the active institutions in the financial economy of the country and determining its value is one of the most important issues of knowledge and professionalism of businesses, which in this study has a special focus. In the present study, the researcher has considered the issue of customer confusion in brand selection and by focusing on determining the specific value, identified the components affecting the brand of banks using the in-depth interview approach and finally presented the appropriate model.Summary of the research results shows that out of the identified factors resulting from axial coding, a limited number of factors such as reducing customer confusion have a significant impact on brand equity and banks pay attention to it and invest in it to strengthen their brand.Keywords: branding, brand equity, investment, bank competitiveness, customer serviceKeywords: branding, brand equity, investment, bank competitiveness, customer service

Ethical decisions among accounting professionals are still considered as an issue important, because accounting fraud will never be stopped and will affect accounting. The literature on business ethics tends to refer to religious affiliation as an indicator of ethical behavior in financial decision-making approaches. The main purpose of this research is The impact of religious orientation on decision-making of financial managers. The present study was applied in a correlational approach and the required data were collected using a questionnaire and a financial scenario from a statistical society including 200 financial managers Companies accepted in Tehran Securities Exchange during the period of 2017and using the minimum structural equations Squares have been analyzed. We investigate this cause, in order to identify the effect of religious orientation on decision-making approach of financial managers including utilitarianism, hermeneutical pragmatism, deontological the probability of a causal relationship between variables. The results show that the extrinsic religious orientation, has a significant and positive effect on pragmatic approach (selfishness). In addition, in financial directors with extrinsic religious orientation, the strongest approach is pragmatic decision making, and its weakest hermeneutical.

The most important concern of credit providers is the timely payment of obligations by clients, since most clients pay their obligations late. For this reason, they should have accurate information from their buyers. The basic question is whether the information is provided to creditors through financial reporting or through other channels of information. Thus, the aim of present study is to investigate the effect of earnings quality on trade credit considering the moderating role of accounting information comparability. To achieve this goal, the financial information of 77 companies listed on the Tehran Stock Exchange from 2014 to 2019 was used. Also, to test the research hypotheses, regression models with panel data structure were used. The results showed that the earnings quality has a positive effect on trade credit. The results also indicated that by increasing the accounting information comparability, the effect of earnings quality on trade credit is intensified.

The leading targets of a tax system and its economic function include tax income increase, encouragement of production and investment, decreasing inequality and improvement of social welfare. This research investigates distributive impacts and efficiency of 9% value added tax collection on production sector. In terms of goal , this is an applied study. The influence of value added tax (VAT) on Gini coefficient as an income distribution index was investigated. Data were analyzed by econometrics methods including panel data and EVIEWS software. To evaluate the efficiency of tax collection (productivity ratio), input-output method was used based on the latest present table for 2011. The results revealed that exercise of a 9% VAT does not have regressiveness on production sector and does not influence on income distribution. Further, average tax collection efficiency by production and consumption method in 2015-2018 was 39.5 and 0.32 percent and this level of VAT collection from production sector (considering its rate) is relatively low.

The ultimate goal of social sciences theories is the empirical proof of structural and analytic theories. Investors usually make investment decisions using fundamental, technical and judgmental analysis (market sentiment). Since the investors are regret aversion, in order to evaluate and prove the various models of decision making by them, we can use the amount and intensity of regret of investors after making decisions based on the above mentioned patterns. So, in the present study, we first studied the effect of the regret aversion on applying different patterns of decision making by individual investors in order to determine the dominant pattern in the capital market of Iran and then the empirical proof of this pattern based on the amount and severity of regret after adoption of decision in 2017. Data were collected using questionnaires in two stages. The findings of the research showed that there is merely a positive and significant correlation between regret aversion bias and the decision making model of individual investors based on judgmental analysis (market sentiment). Therefore, it can be concluded that decision-making based on market sentiment is the dominant model of decision making by individual investors in Iran's capital market. However, the dominant decision-making pattern chosen by individual regret aversion investors has more amount and intensity of regret after adoption of decision. Therefore, regret aversion concept isn’t confirmed empirically (that is, having a lower sense of regret after decision-making based on the dominant model).

In this study, the relationship between stock market long-term memory and exchange rate was studied. For this purpose, the analysis of detrended fluctuations was used and in order to detrend the data, two common detrending methods and cross-detrending were used. The research data included daily information of the stock market index and the dollar exchange rate during the period 2014/03/25 to 2021/02/07 and the data analysis was performed using the regression models. The results showed that the cross-trending of parallel markets produces different results in estimating the long-term memory of the data. According to the research findings, the stock index has a short-term memory under the conventional detrending method, while the cross-detrending method shows long-term memory for this index. The results for the exchange rate showed that under the conventional detrending method, the long-term memory of the exchange rate cannot be estimated in all market volatilities situations, while the cross-detrending method showed that the exchange rate loses its long-term memory in the face of increasing market fluctuations. The results also showed that under the cross-trending method, there is a direct and significant relationship between the long-term memory of the stock market index and the exchange rate.

Problems such as pure materialism in companies, traditional approaches in the financial profession, ignoring the spiritual values in many companies and unprofessional behaviors have caused scandals for individuals and organizations. Creating spiritual capital of human resources can lead to success and efficiency of society. Therefore, human resources are the most vital organizational resource and poor management of human resources can be the most important threat to the long-term success of the organization. There has been a lot of thematic research on spiritual capital; however, it appears that none has been comprehensive and in-depth yet. Therefore, to eliminate the shortcomings of previous researches, the current study develops a comprehensive spiritual capital pattern model among accountants and auditors using a developmentally holistic, systematic, qualitative approach, based on grounded theory approach. In this qualitative study, the required data were collected by purposeful method and snowball sampling through semi-structured interviews with 21 accountants and auditors, and the validity of the findings was confirmed by the reviewing methods of the participants as well as non-participating experts. Data were determined in three stages of open, axial and selective coding.Based on the research findings, a set of characteristics affecting spiritual capital were identified and finally the comprehensive model of spiritual capital comprising causal factors (4 categories), background factors (3 categories), core factors (8 categories), intervening factors (2 categories), strategies (5 categories), and consequences (6 categories) was presented.

Stress in financial markets is defined as the force that influences financial agents’ behavior in terms of the existence of uncertainty and the change of expectations, and its critical levels have been called “financial crisis”. The increase in oil revenues may have positive impacts on total supply by increasing investment, particularly state investment, the import of capital and intermediate goods, and the introduction of new technologies. When the value of the national currency increases as a result of momentum in oil prices, the price of imported capital and intermediate goods decreases. Due to the importance of the financial stress index and its relationship with important economic variables, the current study aimed to investigate the volatility spillover of financial stress to the macroeconomic indicators in the members of the Organization of the Petroleum Exporting Countries (OPEC). The study used multivariate GARCH, BEKK, and VAR models to investigate and analyze the hypothesis. The data were investigated daily from 2010 to 2019. The findings indicated that the financial stress index causes impulses in interest rates, liquidity, and inflation in Iran, Kuwait, and Qatar.

Given the significant benefits of the Radial Basis Function (RBF) approach, here in this paper, we tried to exploit and adopt this method for the Fixed-Rate Mortgage (FRM) models. In the real world, a jump occurs due to an unknown reason and perhaps better reflects the evolution of real estate prices during bubbles and crises in the real estate markets. For the house price evolution, the jump- diffusion models are used which would lead to a Partial-Integro Differential Equation (PIDE) model. The main concentration is on the difficulty of projecting the pricing of FRM that deals with contracts in where the underlying stochastic factors are the house price and the interest rate. Utilizing the stochastic house-price and stochastic interest-rate models, we were able to develop a reliable mortgage valuation. The identified Partial-Integro Differential Equation (PIDE) from the FRM pricing model, solved by RBF considering the fact that a closed-form solution is usually unavailable. Further, to display the expected behaviour of the contract, the possible applications of the suggested method applied to UK fixed-rate mortgages. Based on available resources, a set of economic parameters was determined for the mortgage to provide an instance to show the applicability of the proposed approach.

Anomaly correlation is among the essential topics that must be paid attention to in investment. Given the investment portfolio, the return is considered to be more than the expected return, and the premium risk of portfolio components, and portfolio components, and the correlation between portfolio components are investigated so that one can eventually achieve the optimal portfolio. The present study investigates the CoAnomaly in Tehran Stock Exchange. For this purpose, a simple measure of time series risk was presented as CoAnomaly (anomaly correlation) for stock market trade anomalies. This measure is the mean time-varying made up of 12 anomalies. Since the correlation between the underlying assets determines the portfolio variance, CoAnomaly is an important state variable for arbitrators that have a diverse anomaly portfolio to enhance performance. The information and data required in this study were obtained from the information on the firms listed in Tehran Stock Exchange over 2011-2020. Empirically, We show that, CoAnomaly is persistent and forecasts long-run aggregate volatility of the diversified anomaly portfolio. CoAnomaly positively predicts future average anomaly returns in the time series. On the other hand, results revealed that an increase in the CoAnomaly increases anomaly variance over the short term and long term.

Predictions are extremely important for a better decision-making. Uncertainty in decision making makes investors always seek to assess and estimate risk to minimize potential losses. Conditional risk value (CvaR) is considered as a comprehensive measure of risk that has been considered a useful tool in recent years. Due to the characteristics of capital market data, not all models will be able to make accurate predictions, and among the multitude of models, only the models which make predictions can correctly explain this market.In this study, according to the existing theoretical foundations and using Delphi model and analysis and review of experts, first the accounting variables in the financial statements are effective in predicting the conditional risk value, then the data of accepted companies are used. In Tehran Stock Exchange during 2012-2018, we evaluated the capability of GARCH and Markov index models in predicting conditional risk value as a criterion for predicting coherent risk. The results showed that the estimates made with the GARCH model (1, 1) are closer to reality with the distribution of T-Student.

The aim of this study was to investigate the effect of fraud with earnings management and fraudulent financial reporting of a leading company in the industry on other companies in its group. In this regard, two hypotheses have been developed to answer the research questions. To test these hypotheses, the statistical population of the study consisting of companies listed on the Tehran Stock Exchange between 2010 and 2019 in a period of ten years (320 companies per year and 3200 companies - year) have been studied. To test the research hypotheses, first identify fraudulent companies based on expert consensus and use logistics regression model based on data panel and also calculate F-SCORE as an indicator of earnings management in companies and independent t-test to test the F-SCORE difference was used Before and after the fraud of each class of industry.The results of the hypothesis test show that the follower companies, in response to the fraudulent financial reporting of the leading company, manage Earnings to show better performance and maintain the favorable opinion of capital market analysts regarding their performance compared to the performance of the leading company in their group. Also, RSST accruals Changes in accounts receivable and commodity accounts, all of which are integral components of earnings management, are significantly associated with financial reporting fraud.

Cash is a crucial resource for businesses, and balancing available cash and needs is the most important business health factor. Therefore, companies seek an optimal cash level according to cost-benefit analysis to maximize their value; and determining optimal cash holdings, target cash holdings adjustment speed, and the effect of firm-specific characteristics are incredibly important to managers. The present study aims to test asymmetric models of cash holdings adjustment speed according to financial positions and leverage. In this regard, 117 firms listed on the Tehran Stock Exchange were selected and their 2009-2018 financial information was analyzed. The findings of asymmetric models are shown and suggest that among firms with high fiscal deficit and leverage, firms with high cash regime reach optimal cash holdings faster than firms with low cash regime. The results indicate an optimal level of cash holdings that allows firms to optimally deviate from target cash holdings. Also, when firms leave the optimal range of cash holdings, rapid adjustments are partial and asymmetric.

Currently, managing and supervising the activities of public joint-stock companies is one of the main issues in the economic system of various countries, including Iran. Thus, in many countries, corporate governance policies play an important role and the audit committee, as one of the committees of the board of directors in public companies, plays a key role in establishing and overseeing these policies. Since one of the most important duties and responsibilities of the audit committee is its supervisory role and the responsibility for monitoring all financial activities of the company, it is necessary to explain indicators to evaluate the supervisory function of audit committees. This study aims to explain supervisory indicators to evaluate the performance of audit committees, to formulate the supervisory indicators in the form of a questionnaire. To this end, the indicators were developed and tested by surveying professional and academic experts and also members of the audit committees of firms listed on the Tehran Stock Exchange and the Iranian OTC Market. The results showed that the supervisory indicators of audit committees in the Iranian capital market encompass four dimensions including supervision on financial reporting processes, supervision on internal controls, supervision on internal audit, and supervision on the independent auditor. Besides, these dimensions were categorized into 21 sub-indicators.

The taxable income of legal persons is a critical issue in Iran as this sector plays a dynamic role in economic, social, and cultural activities in the society. The major problem of this study is the gap between the amounts of taxable income calculated by taxpayers and the Tax Administration. Field and bibliography methods besides Pearson Correlation Test were used, and all four hypotheses of research were confirmed. Accordingly, the reasons for the difference or gap between declared taxable income and assessed taxable income include breach of direct tax law by taxpayers, violation of accounting standards by taxpayers, lack of sufficient evidence and documents (including expenses, tax exemptions, and tax incentives) in the hand of taxpayers, ignorance of tax directives, instructions, and regulations by lack of sufficient evidence and documents (including expenses, tax exemptions, and tax incentives) in the hand of taxpayers, ignorance of tax directives, instructions, and regulations by taxpayers. taxpayers.

The enterprise risk management mostly focuses on documenting business unit risks. Capable managers can effectively control the documentation process by company employees. Documentation can increase the reliance on financial reporting provided by management, and therefore capable managers can control the process of documenting information and increase enterprise risk management. On the other hand, the activities of managers with political connections are less transparent and managers hide political information from shareholders. This can increase the corporate risk and reduce risk management. The present study is aimed to investigate the relationship between managerial empowerment and enterprise risk management by examining the moderating role of political connections in companies listed in the Tehran Stock Exchange (TSE). After applying some of the limitations, the statistical population of the present study, consists of 140 companies listed in the Tehran Stock Exchange during 2013 to 2019. Multiple linear regression model is used to test the research hypotheses. We find that there is a positive and significant relationship between managerial empowerment and enterprise risk management. In fact, in companies with more capable managers, enterprise risk management is higher. The results showed that political connection has a negative and significant effect on the relationship between managerial empowerment and enterprise risk management. In other words, in companies with political connections, managers are less capable to improve enterprise risk management practices

The purpose of the research is to explain the model of professional ethics, professional judgment that is effective on reporting professional misconduct in auditing. In this research, SmartPLS-linear structural relationship model was used for data analysis. Structural equations limit the possibility of arbitrarily choosing observable variables that are actually components of latent variables. In fact, structural equations examine the validity of selected variables. Research data was collected using questionnaires distributed among the statistical population. The results show that professional ethics and professional judgment have an impact on reporting professional misconduct in auditing.

This research point is to check the approach of analyzing social networks to form the investment optimal portfolio in Iran’s equities market. This research is based on surveying-exploratory of the gathered sectional data. This research has been done in three phases which includes studying theoretical basics and the literature review, exploratory research, Delphi method and using a questionnaire through a process that was completed in 20 levels. In qualitative part and in respect to Delphi 15 experts in the first phase and 25 experts in the second phase were interviewed. For quantitative approach 384 persons were considered as the total sample of persons to be taken into account for Cochran formula and sampling method. The results showed that, assuming all the other conditions are constant, the investors were not affected by the political news in social networks, as a regards Iranian investors were affected by the economical and corporate news.