Iranian Journal of Accounting, Auditing and Finance
Volume:9 Issue: 1, Winter 2025

The study examined how audit quality impacted income smoothing practices among listed Nigerian deposit money banks (DMBs). While audit quality (AQ) was represented by audit fees (AF), audit firm size (AFS), and audit tenure (AT), income smoothing (IS) was represented by binary variables obtained from the Eckel index of income smoothing. Data were obtained from eleven (11) listed banks from 2013 to 2021. Binary logistic regression was employed. The results indicated that AF is positively associated with IS. In addition, the impact of AFS represented by Big 4 on income smoothing was negative, while that of audit tenure was positive but not significant. The results were similar when the accrual measure of income smoothing was used. The study concluded that the quality of audits determines the tendency for income smoothing among Nigerian listed banks. Therefore, regulators and the management of listed DMBs in Nigeria should emphasize and employ the services of large, reputable audit firms (BIG 4), as it appears to be negatively related to income smoothing. In addition, auditors should be well remunerated to ensure that they exert significant effort to mitigate the incidence of income smoothing.

Today, the performance measurement system (PMS) is critical in organizational activities to improve performance. Thus, this study aims to examine the operational use of PMS in Mashhad Municipality further. To achieve this, research data were collected through a questionnaire, and research hypotheses were tested using structural equation modeling and Smart PLS3 software. The results of the first hypothesis indicate that the operational use of PMSs positively and significantly impacts performance. Additionally, the results of testing the second hypothesis demonstrate that operational use positively and significantly affects organizational responsibility. However, the third hypothesis did not confirm the mediating role of responsibility in the relationship between operational use and performance. These findings offer organizations an opportunity to consider the identification and prioritization of performance indicators during the design phase of PMSs. It is worth noting that no previous research has focused on the role of PMS and investigated this relationship.

Due to environmental tensions and challenges, environmental functions have evolved from mere social responsibility into strategies for sustainable development. Meanwhile, a conflict exists between the interests of companies, external stakeholders, and the social environment, leading to differences in managers’ attitudes toward the use of environmental development strategies. This research aims to investigate the effect of generational accounting on the interactive strategies of capital market companies in terms of environmental interaction. The research sample includes 392 managers at various levels of companies listed on the stock exchange during 2021-2022. Additionally, partial least squares (PLS) analysis was employed to fit the model. The research indicates that generational accounting positively and significantly affects environmental interactive strategies in capital market companies. The findings suggest that the integration resulting from the implementation of institutional and governance guidelines at the capital market level fosters interactive values and norms between companies and the environment. This approach not only protects the interests of the current generation but also, based on long-term foresight, mitigates the burden and pressure of environmental costs from the current generation to future generations. This is the first research to investigate the effect of generational accounting on interactive environmental strategies. Although this area is significant for developing theoretical literature and providing a practical foundation for reducing information asymmetry in environmental accounting, there has been limited research.

Monetary policy is one of the critical economic policies that affect the macro variables of every country. The Financial Condition Index (FCI) is one of the composite variables affected by monetary policy. This study aimed to measure the effect of monetary policy through different channels on Iran's FCI. The FCI was first calculated using time series data from 1991-2023 and the Principal Component Approach econometric method. The effect of monetary policy on the country's FCI using the Markov-switching (MSIHA (2) AR (2)) model was calculated and estimated. The results of the estimation of the Markov-switching model indicate that the studied period can be divided into two regimes of zero and one. These results are consistent with research hypotheses and theoretical foundations, which is not far from expected considering the economic conditions.

This research analyzes the board network of the companies in Iran’s capital market from 2019 to 2022. The research results indicate that despite the difference in the level of communication, most units are related to each other. However, some units are in a better position to establish this relationship. Even in the communication network, there is a gap between the positions of the units and the difference between them becomes considerable, creating a class structure. The better position of some units has caused them to encounter fewer mediators in gaining access to other units, to have faster access, and to have a higher ability to gain access to information through the cluster of network members. In addition, some units are on the communication path of other units, so they have a power of influence. Since these units are in the flow path of information, they have more accessible and faster access to information. These units can play the role of key actors in the governing structure.

The purpose of this research is to investigate and analyze the behavior patterns of stock market fluctuations so that based on the characteristics extracted from different time layers, appropriate strategies with different time horizons can be determined and the level of economic activity Measure the investors.In this research,by applying discrete wavelet transformation with maximum overlap in MATLAB software, stock market fluctuations are investigated and analyzed in different periods of time;For this purpose,the variances of of effective indicators are compared and analyzed during the years 2011-2020.The results of this research show that the wavelet variance of the stock return is more than the moving average of the stock return.According to the movement scales of each of the stock returns and the moving average of the stock returns during the long-term scales, the wavelet variance is less and the co-movement is less,but during the short-term time scales, the co-movement is more and the variance of the wavelet return is more among them. have been. The amount of variance of the moving average of the total index is more than that of the total index.According to the movement scales, each of the total index and the moving average of the total index have less wavelet variance and less co-movement during the long-term scales, but during the short-term time scales,the co-movement has increased and the wavelet variance of return is higher among them.

Intellectual capital (IC) is acknowledged as a strategic advantage for improved performance, and cultural intelligence (CI) is becoming a more significant asset for managers, employees, entrepreneurs, and their organizations. This paper aims to present a new framework for managing IC within audit firms, considering the perspective of CI. The method of the present study is a descriptive survey in terms of data collection and applied from the standpoint of purpose. The statistical population of this study includes all auditors working in audit firms under the membership of the Society of Certified Public Accountants, and 319 individuals made up the statistical sample. The partial least squares approach was used to conduct structural equation modeling, which examined the impact of research variables on IC and fitted the suggested model. According to the study's findings, CI has a positive and significant relationship with the human, structural, and relational elements of IC and auditors will have more human capital (HC), structural capital (SC), and relational capital (RC) as IC rises. The research is exploratory and the framework offers opportunities for refinement. Future studies are required to confirm the framework's applicability to other organizations intended to serve as CI systems. Contribution to the IC research literature is highlighted, expanding the concept of IC value creation beyond the audit firms into wider society and developing a new perspective for managing IC in the audit firms adopting the CI approach. The framework can be used to manage IC strategically in all the systems interpreted as CI systems in which the role of IC creation from multiple actors is relevant. This makes comprehending how IC helps the region and society where the audit firms operate possible. This study is paramount since limited empirical evidence exists, particularly in developing/underdeveloped countries worldwide. The paper's originality lies in combining topics typically covered by literature in different fields, such as IC management and CI perspective. The CI approach provides a novel contribution to managing IC and is intended to inspire future research.

In the contemporary global economy, the interconnectedness of national markets has become increasingly pronounced. Over the past decade, Iran has experienced an annual average import of approximately $40 billion and exports of $38 billion, highlighting emerging cross-border economic linkages. These international connections mean that domestic factors within Iran’s markets are now heavily influenced by external forces. This research investigates the impact of two types of uncertainty—geopolitical risk (GPR) and economic policy uncertainty (EPU)—originating from global, Chinese, and United States sources on the returns and volatility of the Iranian stock exchange. Monthly data from November 2008 to March 2024 were analyzed using a Generalized Additive Model (GAM). The results demonstrate that EPU from global and Chinese sources significantly nonlinearly affects the returns and volatility of the Iranian stock market. In contrast, EPU from the United States only impacts stock market volatility. GPR from China and globally has a direct linear effect on both returns and volatility. The combined effects of EPU and GPR from China and the US also significantly influence returns and volatility, while the simultaneous global effects only impact the returns of the Iranian stock exchange. The findings in the field of GPR indicate that when GPR occurs, investors in the Iranian stock market consider it a safe asset, and the occurrence of GPR serves as an incentive to enter the capital market in Iran. Conversely, the findings regarding EPU suggest that when investors perceive EPU from China, it leads to specific economic effects, prompting them to alter their portfolios. However, the recognition of EPU from the US and global sources is less pronounced among investors, leading them to prefer not to take action. These findings hold important implications for investors and stakeholders in the Iranian financial markets, providing insights that can inform investment strategies and policy decisions.

Existing studies rely on agency theory to explain management motivations for hiding bad news. However, investors’ irrational beliefs can cause stock prices to fall from their perspective. Whether concealing bad news—meaning a lack of transparency—increases heterogeneity among investors needs to be tested empirically. Developing a direct measure of investor heterogeneity is challenging and may lead research studies to examine its role in causing stock price crashes. In considering default risk as a prerequisite for price declines, a refined representation of default risk—such as breach of debt contracts rather than firm size or leverage—may provide better insight into why companies with high default risk are more prone to crash risk. This study investigates the effect of bankruptcy risk on stock price crash risk, emphasizing the role of debt maturity in companies listed on the Tehran Stock Exchange. The financial statements of 150 companies from 2010 to 2021 were collected for the study. Multivariate regression with panel data was used to test the hypotheses. The results of the hypothesis testing show that the effect of bankruptcy risk on stock price crash risk, with an emphasis on debt maturity, is not statistically significant, leading to the conclusion that the research hypotheses are not supported. The research findings can benefit investors, creditors, policymakers, and regulatory bodies. Additionally, they can effectively improve the quality of financial reporting and economic development by identifying existing weaknesses and challenges and providing insights into theoretical frameworks.

The significance of International Financial Reporting Standards (IFRS) and the interest of a diverse array of global researchers underscore the globalization of financial activities. Despite the substantial volume of publications in this area, the intellectual framework of researchers remains largely unexplored. This research aims to clarify the current state and evolution of this field, highlight the intellectual structure of researchers, and provide new insights for future researchers. The research approach employs scientometrics and data mining. All studies indexed in the Scopus database were analyzed. Word co-occurrence, co-authorship analysis, and Latent Dirichlet Allocation were utilized to create a knowledge map. The co-authorship network analysis by country revealed that the United States, England, Australia, Germany, Italy, Canada, Spain, France, and China exhibited the highest centrality ratings. This research also explored trends and knowledge frontiers over different periods within this scientific domain, which can be categorized into themes such as the acceptance and implementation of IFRS, standard-setting and regulatory frameworks, the quality and transparency of financial reporting, the implications of international standards, corporate governance, and IFRS. The findings provide researchers with a clearer understanding of the existing literature by examining the current state of research in this field. This insight enables them to implement innovative strategies to advance and further develop the scientific discipline. Additionally, researchers can identify potential areas for future studies and interventions by gaining a deeper understanding of the concepts and methodologies within this field.