Accounting
Hadis Naderi; Majid Moradi; Farzin Khoshkar
Abstract
Stock prices face several negative and sudden adjustments and managers postpone disclosing the negative/bad news for a long term. A consequence of stock price cash risk may be on the cost of capital which is funds’ cost for a company, or from an investor's perspective, it is the necessary rate ...
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Stock prices face several negative and sudden adjustments and managers postpone disclosing the negative/bad news for a long term. A consequence of stock price cash risk may be on the cost of capital which is funds’ cost for a company, or from an investor's perspective, it is the necessary rate of return on the current securities portfolio of a company. This criterion is employed to assess new projects of a company, as well. Accordingly, an issue which has not been significantly addressed in the research about the relationship between stock price cash risk and cost of capital is the mediating role of large shareholders’ ownership, while shareholders essentially own the company and reap the benefits or losses of the firm’s success or failure. Hence, the objective of this research is to investigate the effect of stock price crash risk on the cost of capital with the mediating role of the large shareholders’ ownership. For this purpose, we considered the listed firms in the Tehran Stock Exchange as our case study. Noticeably, the research time scope is 2012-2019. The method of this research is applied and its nature and content are correlational. Both deductive and inductive reasoning frameworks were used to undertake the study and the hypotheses were analyzed by panel analysis approach. The results showed that the stock price crash risk has a positive and significant effect on the cost of capital, however, the large shareholders’ ownership reduces the effect of stock price crash risk on the cost of capital.
Accounting
Abdullah Al Masud
Abstract
In an aim to assess financial reporting quality and its determining factors, this empirical research examined a randomly selected sample from food and allied sector of the Dhaka Stock Exchange (DSE), Bangladesh. As a rapidly growing industry of Bangladesh, the food and allied sector of DSE grabs a significant ...
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In an aim to assess financial reporting quality and its determining factors, this empirical research examined a randomly selected sample from food and allied sector of the Dhaka Stock Exchange (DSE), Bangladesh. As a rapidly growing industry of Bangladesh, the food and allied sector of DSE grabs a significant portion of market capitalization and attentions from security analysts. To make valuable decisions in relevant domains, the financial reporting quality of this sector matters for policymakers, investors and regulators and for corporate managers also. In this research, the financial reporting quality (FRQ) has been measured using the popular model developed by Dechow, Sloan and Sweeney, also known as Modified Jones Model (1995). A documentary analysis of the available audited financial statements and annual reports of randomly selected sample companies for six consecutive years (2015 to 2020) has been used as the primary data sources. Popular statistical tools like correlation studies, regression analyses etc. have been applied to find the statistical significance of the explanatory variables of this research. Fourteen factors have been examined for their effects on the quality of financial reports using a classical linear regression model. This research finds firm size, firm age, foreign ownership and leverage positively significantly determine financial reporting quality while the growth and board independence negatively significantly influential. The findings recommend managers to emphasize their attention on the significant factors to improve their financial reporting quality. Security analysts shall evaluate firms’ value based on the factors found significant in determining the quality of financial reports.
Accounting
Hamidreza Hajeb; Mohammad Banafi; Javad Nejatpour
Abstract
The purpose of this study is to investigate the effect of corporate governance mechanisms on the relationship between related party transactions and audit fees. In this study, board size and duality role of CEO were selected as corporate governance mechanisms and their effect on the relationship between ...
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The purpose of this study is to investigate the effect of corporate governance mechanisms on the relationship between related party transactions and audit fees. In this study, board size and duality role of CEO were selected as corporate governance mechanisms and their effect on the relationship between related party transactions and audit fees among 93 companies listed on the Tehran Stock Exchange in the 10-year period of 2011-2020 were investigated. For this purpose, three hypotheses were formulated to investigate this issue and research regression models were tested using the panel data method with the fixed effects approach. The results showed that there is a positive and significant relationship between related party transactions and audit fees. The results also indicate that corporate governance mechanisms (board size, CEO duality) have a negative and significant effect on the relationship between related party transactions and audit fees. In fact, the results indicate that auditors are increasing their audit efforts (reflecting audit fees) to address the risk associated with related party transactions. It also minimizes conflicts of interest, opportunistic behaviors of managers and, consequently, the risk associated with related party transactions by applying appropriate regulatory mechanisms.
Accounting
Wiwin Juliyanti; Jaka Winarna
Abstract
This quantitative descriptive study aims to analyze the relationship between Information and Communication Technology (ICT) factors that have been adopted by local governments in Indonesia on the Public Accountability (Y). Using a purposive sampling technique, panel data were obtained as many as 450 ...
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This quantitative descriptive study aims to analyze the relationship between Information and Communication Technology (ICT) factors that have been adopted by local governments in Indonesia on the Public Accountability (Y). Using a purposive sampling technique, panel data were obtained as many as 450 observations from 150 districts in the 2017-2019 period. Descriptive analysis and regression of panel data using software Eviews 09. The findings of this study explain that ICT Determinants simultaneously show a relationship significant through the F-statistic test. While the t-test used to test the effect of each independent variable has various results. The partial test demonstrates that Technology Development (X3), Website Accessibility (X5), and Press Visibility (X6) affect Public Accountability, but the research has not been able to find a significant relationship between Telecommunication Networks (X1), Internet Access (X2), e-Government (X4), and Electronic Procurement (X7) on Public Accountability. The results of this study can be used as consideration for the government in formulating policies related to ICT in order to realize public accountability.
Accounting
Zhixia Cui
Abstract
In order to provide suggestions forthe reform and transformation of coal mining firms, we construct regression models to analyze the impact of innovation capability. Using a sample of coal mining firms listed on the Shanghai and Shenzhen Stock Exchanges in China from 2013 to 2018, and explaining the ...
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In order to provide suggestions forthe reform and transformation of coal mining firms, we construct regression models to analyze the impact of innovation capability. Using a sample of coal mining firms listed on the Shanghai and Shenzhen Stock Exchanges in China from 2013 to 2018, and explaining the innovation capability from three perspectives of R&D intensity, innovation level, and innovation efficiency, this paper is the first to empirically examine the relationship between innovation capability and enterprise profitability, and further investigate the impact of environmental policy on the relationship. We find that the innovation of coal mining firms can effectively promote the improvement of profit growth, especially for the coal mining firms with stronger R&D intensity and higher innovation level. After considering the constraints of environmental policy on coal mining firms, we also find that the greater the intensity of environmental policy, the stronger the positive relationship between R&D intensity and profit growth, which is the effective evidence of applying the Porter’s hypothesis to the high-polluting coal mining firms in China. The conclusions facilitate the managers of coal mining firms to further understand the impact of innovation on profitability. At the same time, the study also provides empirical evidence for policy-makers to stimulate innovation of coal mining firms from the perspective of environmental policy.
Accounting
Fehmi Karasioğlu; Humayun Humta; Ibrahim Emre Göktürk
Abstract
This study examines accounting ethics' impact on financial report quality and decision-making Kabul based logistic corporations in Afghanistan. Accounting ethics is such an important aspect of the field since accounting ethics is a matter of rules and values. Accounting ethics is mainly an area of applied ...
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This study examines accounting ethics' impact on financial report quality and decision-making Kabul based logistic corporations in Afghanistan. Accounting ethics is such an important aspect of the field since accounting ethics is a matter of rules and values. Accounting ethics is mainly an area of applied ethics and is part of corporate ethics and human ethics, financial reporting consistency is a mindset, not a collection of particular activities. For making a decision, a good manager needs to be practical but confident when executing it. Unfortunately, some know-how, at the right moment, to switch from realism to optimism. There for the study examines the effect of accounting ethics on financial report quality and decision making. Totally 30 valid questionnaires, which were collected through Google Form, were analyzed by SPSS 24. To examine the suggested hypotheses, correlation analysis, and linear regression analysis were employed. For examining the reliability of adopted scales, Cronbach's Alpha was used. The study results demonstrated that accounting ethics significantly positively impact financial report quality and decision-making in Kabul-based logistic corporations. This study's findings fill the gap in Afghanistan's accounting literature by empirically investigating accounting ethics' impact on financial report quality and decision-making Kabul based logistic corporations.
Accounting
Md. Rezaul Karim; Muhammad Armaan Hossain
Abstract
The purpose of this study is to predict the areas in financial statements susceptive to fraud in the banking sector of Bangladesh. Data of 13 years ranging from 2006 to 2018 of 29 listed banks in Bangladesh were examined for the purpose of this study. Financial data suggested by International Standard ...
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The purpose of this study is to predict the areas in financial statements susceptive to fraud in the banking sector of Bangladesh. Data of 13 years ranging from 2006 to 2018 of 29 listed banks in Bangladesh were examined for the purpose of this study. Financial data suggested by International Standard on Auditing (ISA) 240 as fraud risk indicators were used as the independent variables and banks identified by Centre for Policy Dialogue (CPD) to be engaged in fraud, scam and heists were taken as dependent variable. Multilayer Perceptron Network (MLP), a class of feedforward Artificial Neural Network (ANN) model was used as the analytical tool. It is found that loan disbursement, assets, profit, operating expenses and tax are the areas that can signal the probable fraud in financial statements of the listed banks of Bangladesh. The findings of this study will have policy implications for auditors and the regulators of money market in Bangladesh.
Management
Nesa Moradpour
Abstract
Performance appraisal refers to the process of performance measurement, assessment, valuation, and judgement over time. Performance ranking based on several criteria of different values is possible only when multi-criteria decision models are adopted. In this regard, different indicators are used in ...
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Performance appraisal refers to the process of performance measurement, assessment, valuation, and judgement over time. Performance ranking based on several criteria of different values is possible only when multi-criteria decision models are adopted. In this regard, different indicators are used in accordance with the type of ranking. Accordingly, inspired by the support vector machine model (SVM) and the Promethee technique, the present study aimed to develop a performance appraisal model for mutual funds and rank them accordingly. In this study, 34 mutual funds accepted in Iran’s capital market were selected during 2016-2018 using the systematic random sampling method. First, the key performance indicators were detected using the indicators of post-modern portfolio theory, which were then approved by managers, experts, and professionals. Then some information about each indicator was collected, and the experts and professionals’ comments were used to weight the indicators and specify the importance and priority of each indicator. Afterwards, an applied model was developed to represent the indicators effective in ranking mutual funds. Finally, the SVM model and the Promethee technique were adopted to rank the concerned mutual funds. The findings revealed that, in comparison to the indicators of downside risk and Sortino, upside potential ratio has the greatest effect on the performance appraisal of the mutual funds accepted in Iran’s capital market.
Accounting
Raihan Sobhan
Abstract
The main objective of this study is to find out the effects of board characteristics on firm performance in the listed companies of non-banking financial institutions industry of Bangladesh. This study has considered five board characteristics namely board size, the proportion of independent directors, ...
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The main objective of this study is to find out the effects of board characteristics on firm performance in the listed companies of non-banking financial institutions industry of Bangladesh. This study has considered five board characteristics namely board size, the proportion of independent directors, the proportion of female directors, the number of board meetings and percentage of directors’ ownership. ROA has been taken as the performance indicator. The regression results show that board size and female directors are positively and significantly related to firm performance. On the other hand the proportion of independent directors, the number of board meetings and the percentage of directors’ ownership do not have any significant impact on firm performance. The findings of this study will help the regulators and policymakers to understand the existing weakness of corporate governance structure in the financial institution industry and will aid in their quest for harmonizing the practice of corporate governance of Bangladesh with that of developed countries.
Accounting
Md. Tahidur Rahman; Syed Zabid Hossain; Md. Anwarul Haque; Md. Abu Hanif Ashik
Abstract
This study intended to explore the IPO motives and the factors that contributed to IPO oversubscription in Bangladesh. Based on hand-collected data from 101 sample IPO prospectus during 2010–19, the study found an average of 10 IPOs per year, mostly (90%) through the fixed-price method. Among the ...
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This study intended to explore the IPO motives and the factors that contributed to IPO oversubscription in Bangladesh. Based on hand-collected data from 101 sample IPO prospectus during 2010–19, the study found an average of 10 IPOs per year, mostly (90%) through the fixed-price method. Among the sample companies, 34.7% were in the textile sector, followed by 17.8% in the engineering sector and 12.9% in the pharmaceuticals & chemical sector. This study observed an average subscription times of 23.41, which was much lower than in some other South Asian countries. Regarding the use of IPO proceeds, loan settlement was the prime motive, followed by capital expenditure, and working capital financing. Companies expensed around 6% of the total IPO proceeds as flotation cost. Although the detailed disclosure of the use of IPO proceeds in the prospectus is a common and expected feature, it was found absent in around 12% of companies. The logistic regression model found a statistically significant influence of lot size (LOT), post-IPO capital (PIC), and flotation cost (FTC) on oversubscription times (OST). The contribution of FTC to OST was a novel finding of this study. The study also found the absence of large and reputed domestic and multinational conglomerates in the listing through IPOs. Thus, the current study recommends regulators should take proper drives to customize and familiarize the book-building method, which can entice good companies for listing in stock exchanges through IPO.
Accounting
Ali Najafi Moghadam; Masoumeh Nejad Mohammadi Alarelough; Abdulaziz Salem Nejad
Abstract
The aim of this study was to investigate the effect of internal factors of the company on the Tobin's Q ration and the value of companies admitted in Tehran Securities Exchange Stock Exchange with the approach of structural equation modeling. In this study the effect of corporate governance, capital ...
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The aim of this study was to investigate the effect of internal factors of the company on the Tobin's Q ration and the value of companies admitted in Tehran Securities Exchange Stock Exchange with the approach of structural equation modeling. In this study the effect of corporate governance, capital structure and profit sharing policy as internal variables on corporate value was investigated. This research is practical in terms of goal. Statistical population of the present study is the companies accepted in the Tehran Stock Exchange between 2012 to 2016. Among them, 161 companies were selected as sample through systematic elimination. After finding to fit the acceptable model of measurement and structure of the research, the results showed that internal variables have a positive effect on the Tobin's Q ratio. Among the internal variables, the return-sharing policy has the most impact on the Tobin's Q ratio. The Tobin's Q ratio can mediate the relationship between local variables and the corporate value.
