Stock Companies as an Important Source of Influence to Increase Investment in Economic Projects: Case Study of Mofid Brokerage Firm

Document Type: Case Study

Authors

1 Deputy of Education ,Tax Applied Sciences University, Mashhad, Iran

2 Director General of Tax Organization, Mashhad, Iran

3 Invited Lecturer, Tax Applied Sciences University, Mashhad, Iran

Abstract

One of the main tools to extend and make deeper the capital market is promoting the level of market analysis. Without extensive and comprehensive research and analysis on the capital markets, we cannot expect to grow capital market's position in the national economy. A brief review of developments in stock companies, as a key element of the market capitalization of the economy, indicates that gap analysis has been existed on this market. But promising steps have been taken towards the use of standard indicators and methodologies for analyzing our capital markets through recent years. However, it is still common that we are far from the analyzing the capital market and we have lots of works to do on this field. In this study we investigated the relationship between conservatism and some characteristics of the board of directors (as the main strategy of the company) in order to motivate and increase the level of investments. To achieve this goal, 53 companies which are the subcategories of Mofid brokerage firm were selected for a period of 6 years (from 1385 to 1391).

Keywords


Ann Ho, J. (2009). “Association Between Board Characteristics and Accounting Conservatism: Empirical Evidence from Malaysia”, Auckland University of Technology.
Azar, A., Momeni, M., (2008). "Application of Statistics and Management", Volume II, Statistical Analysis, Second Edition.
Badavrnahandi, Y.; Mahmoud M. and Plant, S. (2011). "The relationship between corporate governance mechanisms and some conservatism in financial reporting", Accounting Research, pp. 50-30.
Beekes, W.A; Pope, P.F. & Youg, S.E (2009). "Investment in intangible goods in order to finance projects", Journal of Agricultural Science, No. 2, pp. 119-157.
Chi, Liu & Wang (2007). “Trust, Sociability, and Stock Market Participation”, Oxford Journals,  Volume 15, Issue 4, pp. 693-725.
Dalton, J., Hayn, C. (2007). “The Changing Time Series Properties of Earnings, Cash Flows and Accruals: Has Financial Reporting Become More Conservative?”, Journal of Accounting and Economics, NO. 29, pp 287-320.
Garcia & Penalva (2006). Method and Psychological Effects on Learning Behaviors and Knowledge Creation in Quality Improvement Projects. Management Science, 437-450.
Gich & Berlainzin (2011). From physical to human capital accumulation: Inequality and the process of development. The Review of Economic Studies, 71(4), 1001-1026.
Hermalin, B. E. and Weisback, M. S. (2009). “Board of Directors as an Endogenously Determined Institution: A Survey of the Economic Literature”, Center for Responsible Business. Working Paper Series Paper 3.
Jin, L.; Yan-xi, L. and Yang, W. (2008). “Independent Director, Earnings Conservatism, Investments Opportunity – Empirical Evidence from Chinese Listed Companies”, International Conference on Management Science & Engineering, pp 1-9.
Kalantari, Khalil, (2003), Processing and Data Analysis in Social and Economic Research, Tehran: Agah Publication.
Kanani, A., (2010). "The relationship between changes in cash flow components and systematic risk changes with the market value of listed companies in Tehran Stock Exchange", MS Thesis, Islamic Azad University of Hamedan.
Kurdistan, G.; Amyrbygy Langroodi, H. (2010). "Conservatism in financial reporting and economic consequences", Journal auditor, Number 48, Spring 89, pp. 132-128.
Lim, S; Matolcsy, Z, and Chow, D. (2010). “The Association between Board Composition and Different Types of Voluntary Disclosure”, European Accounting Review, NO.16, pp 555-583.
Parsaeian, A., Arab, S. M., (2010). "Principles of Organizational Behavior", Volume III, Tehran: Bureau of Cultural Research
Roslinda (2009). Impact of Network Position and Knowledge Diversity on Knowledge Creation: The Empirical Setting of Research Communities. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration, 29(4), 297-309.
Roslinda, R., and Jovanovic, B. (1993). “Stock Markets and Development,” European Economic Review. 37: 632-640.
Sarmad, Z., Bazargan, A., Hejazi, E. (2005). Research Methods in Behavioral Sciences, Tehran: Agah publication.
Smith, C. and Watts, R (1992). ”The Investment Opportunity Set and Corporate Financing, Dividend, and Compensation Policies”, Journal of Financial Economics, no. 32, pp, 263-292.
Thai and Kuntisook (2011). "The proposed price difference in buying and selling of shares and earnings quality", Journal of Administrative Sciences and Economics University, Twentieth Year, No. 51.