Investigating Effective Factors on Relevancy of Net Income

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "www.engineerspress.com Investigating Effective Factors on Relevancy of Net Income"

Transcription

1 ISSN: Year: 2013 Volume: 01 Issue: 13 Pages: Investigating Effective Factors on Relevancy of Net Income Ghodratollah Barzegar 1, Aliakbar Ramezani 2, Saeed Valinataj 3 1. Member of the faculty, Department of Accounting, Mazandaran Universy, Babolsar, Iran 2. Department of Accounting, Qaemshahr Branch, Islamic Azad Universy, Qaemshahr, Iran 3. MA Student, Department of Accounting, Universy College of Rouzbahan, Sari, Iran ABSTRACT This research is empirically investigated relevancy of accounting net income value wh return of firms stock market in Tehran stock exchange. Recent done research in newfound markets is stimulus of this research. First, relevancy of net income value is examined based on panel data regression and simple return model wh using sample include from firms accepted at Tehran stock exchange during 2006 till 2011 which s data are available. Then, we deal wh 3 questions about relevancy of income. First, according to available inflation in Iran, we check that has this inflation effect on relevancy of net income? Second, we examine impact of firm size (measured by common logarhm of firm market value) on relevancy of net income. Finally, we investigate impact of firms income continuy on relevancy of net income wh using a ratio (ratio of operational revenue to revenue before tax). Results show that net income relevancy level in Iran is higher than level reported by done research in most of mature markets. Available inflation in research period cause decreasing in net income relevancy. Whereas, net income in big and small companies has significant relationship wh stock market return, investors will give more value to big companies income than small companies income. Finally, we find that investors in Tehran stock exchange don t distinguish between income of firms which have less durable components and firms which have more durable components; and are just mentioned final amount. KEYWORDS: net income, value relevancy, inflation, firm size, earnings persistence.

2 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 14 Introduction Providing and representing useful information for investment decision making and accreded are as one of purposes of accounting and financial reporting. Useful information is information that has qualative features. These features are relevancy and reliabily. Relevancy means that accounting information can make difference in decisions (financial accounting standard board, 1980). There are countless researches about relevancy of accounting data value which define as abily of accounting statistics in entering and purification of information that has effect on firm value (Hang, 2001). Relevancy of value tradionally use as synonym word for more correlation wh market data: accounting data which have more correlation wh prices or markets return, are seen as more relevant data. Financial statement among income statement and accounting statistics proposed in are final product of accounting process. One of statistics represented in income statement is net income. Income is one of most basic ems of financial statement which remember as crerion for evaluating continuy, efficiency and revision in firms representatives contracts and still guidance for predicting, decision making and investment. Income as one of most important ems of financial statement has attracted much attention to self and many researches that are done about different aspect of show s great materialy. Lerature Research Early efforts for investigating relevancy of accounting information value were done by Ball and Brown (1968). They represented evidences from relevancy of stock unexpected earnings to abnormal returns of stock. After Ball and Brown, countless researches were done about usefulness of accounting information in USA. Some of them represented evidences from relevancy of accounting earnings (Collins and Kothari, 1989; Kothari and Zimmerman, 1995). While, others expressed wh considering this assumption that size of assets and debts mention results of future activies, stock price depend on book value of firm assets (like Barth, 1991). In this research, models based on income and models based on book values typically observed as alternative approaches for evaluating models (like Barth and Landsman, 1995). Yet, next researches argued that in more realistic market wh incomplete markets accounting systems can provide information about incomes and book values which can be supplement components of capal value (Felltham and Olsen, 1995; Olsen, 1995; Penman, 1998; Chang, 1999). For example, Felltham and Olsen (1995) and Olsen (1995) expressed that value of firm can be expressed as linear function of book value, income and other related data. Wh using return volatile and compatibily value concepts, Burgstahler and Dichev (1997) expressly argued that book value basically provide value of firm net resources based on historical cost and is largely independent of using s resources in current period. Against, incomes provide amount of value that show results of using firm current resources. Then, a multivariable evaluating model preferred to one variable model. After Ball and Brown (1968) accounting researchers has represented countless papers that were documented dependence between accounting incomes and stock returns. Then, researches about relevancy of accounting information were extended till included assets size and earnings size wh using Olsen model (1995). While, early researches focus on USA markets, next researches because of increasingly confirming on role of accounting information on global markets has investigated relevancy of accounting information value at all markets except USA markets (like Alford et al., 1993; Amir et al., 1993; Harris et al., 1994; Barth and Clinch, 1996; Chen and Sou, 1996; Graham and King, 1998). Sajadi (1998) investigated factors related to unexpected earnings and s relationship wh stock price. Results obtained from 70 studied firms during 73 till 75 showed that there is

3 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 15 significant relationship between unexpected changes of income and abnormal changes in stock return that indicate relevancy of net income. Ali Panahi (2001) studied relationship between changes of income statement elements wh stock return changes of 53 firms accepted at Tehran stock exchange during 72 till 77. According obtained so weak correlation coefficient between net income changes and stock return changes and rejecting hypotheses in 4 years of research period, he concluded that there isn t significant relationship between net income changes and stock return changes. In other word, net income isn t relevant wh stock return. Foladi (2003) mentioned relationship between changes in income statement elements and stock price changes during Results showed that at more than %60 of firms, there is significant relationship between net income changes and stock price changes that indicate relevancy of net income wh stock price. Pourheidari and Kohansal (2005) investigated relationship between income and stock return according to firms attributes (such as size). Results of this research showed net income is relevant about stock return and that incomes are more relevant in big firms than small firms. At latest researches, Valipour et al. (2010) investigated relevancy of earnings elements and levels to market value for firms accepted at Tehran stock exchange during Results represented that all of elements and levels of reported income such as net income, consider as more relevant information about evaluating firm. Methodology According to topic of this research, can express that this research is applied research from point of purpose and descriptive from point of implanting. It is ex-post research from the point of time and use from past information of sample firms. Research Hypotheses Research hypotheses are provided as follow: H 1 : inflation has significant impact on relationship between net income and stock market return. H 2 : relationship between net income and stock market return is statistically more in big firms than small firms. H 3 : relationship between net income and stock market return in firms wh high earnings sustainabily (earnings qualy) is statistically more than firms wh low earnings sustainabily (earnings qualy). Research Statistical Population Statistical population of this research is firms accepted at Tehran stock exchange during 2006 till All active firms at Tehran stock exchange during 2006 till 2011 is 469 firms which consider as statistical population of this research. But, number of mentioned firms is adjusted by considering condions and limations because data of some firms isn t available and possibily of selecting statistical sample. Finally 99 firms of population are used in research.

4 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 16 Variables Definion and Testing Hypothesis Methods Representing accurate definion of variables which make easy possibily of measuring mentioned elements of research is first step for testing research hypothesis. Variables are divided to two independent and dependent groups based on role that are responsible in research. Independent or explanatory variables are variables that can show impact of economic decision making in behavioral Research. Independent variables which occasionally named input or stimulus variables are theoretical or experimental reason of changes in purpose. Dependent variables are perceived or possible effect which occasionally named output or answer variable (Azar and Momeni, 2008). Three groups of variable named independent, dependent and control variable are used in this research. Dependent variable is stock return and independent variable is net income. Adjusting variables used in research model is as follow: Inflation (in first hypothesis) Firm size (in first hypothesis) And earnings sustainabily (in first hypothesis) a) Price Model First model for checking income relevancy is as model (1). This model is well known to Olsen model. Olsen (1955) believed that stock return simultaneously depend on income and book value of stock. 1) P EPS BV Variable (p) shows stock price (dependent variable). Market value of sample firms stock is available through Tehran stock exchange se. EPS and BV show earnings per share and equy book value per share (independent variables) respectively. Income per share is measured through ratio of net income to stock number and book value of each share through ratio of equy book value to stock number. Accounting income and stockholder equy is extracted from income statement and balance sheet respectively. According to activy variation and complexy of sample firms, income and book value variables are adjusted and homogenized. For this, income per share and book value per share are divided to stock market value at beginning of period in firm (p t-1 ). b) Return Model Second model for investigating income relevancy is as model (2). 2) R EPS EPS Variable R shows stock return (dependent variable). EPS and EPS represent earnings per share and earnings per share changes (independent variables) respectively. Earnings per share changes are obtained from difference between current year earnings (EPS t ) and last year earnings (EPS t-1 ). For homogenizing, these two variables are divided to stock market value of firm (p t-1 ) at beginning of period. Stock return is measured through following relation:

5 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 17 R i, t P1 D P0 P 0 Which: R i,t : real return of share i at year t P 1 : stock price at end of year t P 0 : stock price at beginning of year t D: dividend (paid per share) Inflation modulator, firm size and earnings persistence variables are measured as table (1). Table (1): Modulator Variables of Research Variables Symbol Measuring method and collecting source inflation Firm size Earnings sustainabily Infla FSize EPersist This variable is calculated through total index of merchandise and consumer Services cost in Iran urban areas and is extracted from official se of central bank ( It is measured through common logarhm of firm total assets (extracted from balance sheet). It is equal to determinant coefficient obtained from estimating regression model between current and future incomes ( each of sample firm during research period. Earn a a Earn i, t 1 i, t 0 1 e ) for Testing Hypotheses In this research after extracting required information from mentioned resources and preparing variables wh Excel and performing necessary calculations for gaining to required variables for research, for calculating regression model is used from collected data from Eviews software. H 1 : testing impact of inflation on relationship between net income and stock market return (income relevancy). For testing first hypothesis, adjusted determinant coefficient (Adj R 2 ) obtained from models (1) and (2) after and before adjusting effect of inflation index is investigated and compared wh Wang test (1989). H 2 : testing relationship between net income and stock market return in big and small companies. In testing this hypothesis, first observation related sample firms are divided to two big and small companies based on variable firm size (FSize). Firms are separated in this case that firms above average amount of this variable are big firms and firms below average amount of this variable are small firms. Then, models (1) and (2) are estimated at two big and small firms group and finally, adjusted determinant coefficient obtained from (adj R 2 ) model in big and small firms are examined and compared wh Cramer test (1987).

6 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 18 H 3 : testing relationship between net income and stock market return in firms wh high earnings persistence and low earnings persistence. For testing third hypothesis, first observation related to sample firms based on earnings persistence divide to two groups named firms wh high earnings persistence and low earnings persistence. Then, model (2) and (3) are estimated in two groups of firms wh high earnings persistence and low earnings persistence; finally, adjusted determinant coefficient obtained from estimating (adj R 2 ) model in firms wh high earnings persistence and low earnings persistence are examined and compared by Cramer test (1987). Research Descriptive Statistic In this research, first amount of variables are calculated by using from data and then descriptive statistics of research dependent and independent variables included average, median, fashion, maximum, minimum and standard deviation are calculated and then they are represented at table (2). Mentioned amounts represent overview of suation of research data distribution. Represented results show that average (and standard deviation) of dependent variable in research models meaning stock return is equal to (0.1527). Amount of average show that maximum of data related to this variable are close to 0.21 between sample firms. Amount of standard deviation indicate percentage of data scattering around average. Also, amount of median related to stock return is equal to and this means that half of obtained amount for this variable are less than this amount and other half are more than this amount. Other variables of research are interpretable in the same way. Table (2): descriptive statistic of research dependent and independent variables Variables Symbol Mean Median Maximum Minimum Standard deviation Stock return R Stock market value P Earnings per share EPS Earnings per share changes EPS Book value of each share BV inflation Infla Firm size FSize Earnings persistence Persist

7 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 19 Table (3): Correlation coefficient between research variables Variables R P EPS EPS BV Infla FSize Persist R 1 P EPS EPS BV Infla FSize Persist Test of Determining Appropriate Model in Panel Data Test of determining research models is done at all of sample firms groups. Bound F (Chow) and Hausman test are used for investigating type of testing model in different periods and sections of panel data. In Chow test, if Chow statistic obtained from test is significant, hypothesis 0 is rejected and fixed effect model is accepted. If mentioned statistic isn t significant, consolidated and integrated data method is used for testing hypothesis. In Hausman test, if Hausman statistic is significant, hypothesis 0 is rejected and fixed effect method is accepted. If mentioned statistic isn t significant, random effect model is used for testing hypothesis. Results of Chow test is represented at table (4). Table (4): Results of Chow test Examined models Chow statistic p-value Test result Model 1: based on price P 0 EPS 1 BV Hausman test Panel data Model 2: based on return R 0 EPS 1 EPS Hausman test Panel data As we see in table (4), results of Chow test in research models don t confirm 0 hypothesis of this test based on having similar intercept at all periods. So, we should use panel model (fixed or random effect) for estimating models in research statistical samples. Hausman test is done for selecting

8 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 20 appropriate model between random and fixed effect models which results of is observable in table (4-5). Table (5): Results of Hausman test Examined models Hausman statistic P-value Test result Model 1: based on price P 0 EPS 1 Model 2: based on return R 0 EPS 1 BV 2 EPS Random Effect Random Effect Results of Hausman test for both model of research show that 0 hypothesis of this research are confirmed. So, random effect method is more appropriate option for estimating return and price models. Results of Testing Research Hypotheses Summary of testing hypotheses results is observable in table (6). Each of research hypotheses is examined based on two models. First model is based on stock price and second model is based on stock return. Model estimation is done based on random effect method of panel data. Table (6): Summary of testing hypotheses results Number Hypothesis Type of test Model Impact inflation income relevancy of on Impact of firm size on relevancy of net income Impact of earnings persistence on relevancy of net income Random effect Random effect Random effect price return price return price return Wang or Cramer statistic (significant level) (0.0046) (0.0271) (0.1896) (0.0894) (0.0237) (0.1143) Result Confirmed Confirmed Rejected Rejected Confirmed Rejected Results of Testing First Hypothesis As we expressed at part 4, result of Wang test (Static= و p-value=0.0046) in estimating first model show that difference between information content of earnings per share is significant in two estimations. In other word, research first hypothesis is confirmed and can claim that relevancy of

9 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 21 earnings per share decrease in models based on price wh adding inflation variable. In second model estimation, results of Wang test (Static= و p-value=0.0271) show that difference between information content of earnings per share in %5 error level is significant and second hypothesis of research is confirmed wh using second model and can claim that relevancy of earnings per share in model based on return decrease wh adding inflation variable. So, inflation index decrease relevancy of net income of firms accepted at Tehran stock exchange. Results of testing first hypothesis is same wh results of Bobles et al. (1985), Somme et al. (1989) and Davis et al. (2000) and Kolek and Balteri (2009) researches. But, isn t same wh results of Beaver et al. (1982) and Beaver and Landsman (1983) and Metlasi (1984) researches. Result of Testing Second Hypothesis Result of Cramer test in testing second hypothesis for both model shows that difference between information content of earnings per share in two big and small firms groups isn t significant. In other word, research second hypothesis is rejected and can claim that firm size hasn t significant effect on relevancy of net income in firms accepted at Tehran stock exchange. Against results of this hypothesis, results of Chen et al. (2001); Gernick et al. (2001) and Fillip and Raforinier (2010) researches show that there is significant relationship between firm size and relevancy of accounting information. Reason of mismatching results of this research wh mentioned researchers can be defects of data in Tehran stock exchange. Another reason is that big firms in Tehran stock are often governmental and governmental firms usually haven t necessary performance in reporting like private companies. Although in Iran, Pourheidari and Kohansal (2005) in their research show that relevancy of accounting income is different in big and small companies. Results of Testing Third Hypothesis: Result of Cramer test (Static= and p-value=0.0237) show that difference between information content of earnings per share is significant in two groups of firms wh high earnings persistence and low earnings persistence. In other word, research third hypothesis is confirmed wh first model estimation and can claim that earnings persistence of firm has significant impact on relevancy of net income. But, in second model estimation, results of Cramer test (Static= and p-value=0.1143) show that difference between information content of earnings per share in two groups of firms wh high and low earnings persistence isn t significant. In other word, research third hypothesis wh using second model is rejected. Then, results of third hypothesis is different in estimating first and second model and just wh helping first model can conclude that earnings persistence between firms accepted at Tehran stock exchange decrease relevancy of net income. These results can come from this topic that incomes which repeat at different years were for earnings smoothing by management. Because smoothed earnings cause users aberration and can decrease information content of income. Results of this hypothesis are same wh results of Khoshtinat and Rezaie (2006) research. Research Limations Limations of this research are as follow: A) In the real world, a phenomenon may be influenced by factors and different variables. Some of these factors and variables are known for researchers and he/she can determine impact of these factors on considered phenomenon. But, there are other factors that researchers don t know existence of them or that possibily of determining impact of them on studied dependent variable qualatively. So, researcher, in each

10 Investigating Effective Factors on Relevancy of Net Income by Ghodratollah Barzegar et. al. 22 research, can investigate limed number of these independent variables. About this research, other factors like economic suation, public level of prices and polic condions that is out of researchers access can be effective on research results. B) Number of studied firms decrease to 99 cases because of some selective creria (like financial period end to 12/29, not changing financial period) in selecting firms and also lack of data of some firms. So, generalizing results of this research to other firms should be done warily. C) Because of time limation, present research just include 2006 till 2011 and because of governmental policies and economic problems like downturn, suddenly increasing or decreasing exchange index because of polical news and etc, results of research in each year isn t applicable to all years. References Ali Panahi, K. (2001). Analytical study of the relationship between stock returns wh changes in the prof and loss account ems listed companies in Tehran Stock Exchange. MA Thesis Accounting, Tarbiat Modares Universy. Ball, R., and Brown, P. (1968). An Empirical Evaluation of Accounting Income Numbers. Journal of Accounting and Economics, Vol. 6, pp Barth, M., and Landsman, W. (1995). Fundamental Issues Related to Using Fair Value Vccounting for Financial Reporting. Accounting Horizons, Vol. 9, pp Brown, S., Lo, K., and Lys, T. (1999). Use of R2 in Accounting Research: Measuring Changes in Value Relevance over the Last Four Decades. Journal of Accounting and Economics, Vol. 28, pp Chen, J.P.C., Chen, S., and Su, X. (2001). Is Accounting Information Value-Relevant in the Emerging Chinese Stock Market?. Journal of International Accounting, Auding & Taxation, Vol. 10, pp Feltham, G., and Ohlson, J. (1995). Valuation and Clean Surplus Accounting for Operating and Financial Activies. Contemporary Accounting Research, Vol. 11, pp Foladi, M. (2001). The relationship between changes in income statement ems and changes in constuent stock prices of companies listed in Tehran Stock Exchange. MA Thesis Accounting, Tarbiat Modares Universy. Ohlson, J. (1995). Earnings, Book Value, and Dividends in Secury Valuation. Contemporary Accounting Research, Vol. 11, pp Pourheidari, A., and Kohansal, M. (2005). The relationship between earnings and cash flows and stock returns based on firm-specific characteristics. Accounting Studies, No. 9, Sajadi, H. (1998). Factors associated wh unexpected earnings and s relation to stock price. Auding and Accounting Reviews, No. 24 & 25, pp Valipour, H., Rostami, V., and Shahabi, A. (2010). The relationship of levels and components of reported earnings for predict the value of the company. Management Accounting, No. 7, pp

Studying the Relationship between Financial Variables and Securities Risk

Studying the Relationship between Financial Variables and Securities Risk Studying the Relationship between Financial Variables and Securies Risk Behnam Gilaninia 1, Shahram Gilaninia 2, & *Asghar Asadi 3 1 Department of accounting, Science and Research Branch, Islamic Azad

More information

An Empirical Study of Association between Working Capital Management and Performance: Evidence from Tehran Stock Exchange

An Empirical Study of Association between Working Capital Management and Performance: Evidence from Tehran Stock Exchange Journal of Social and Development Sciences Vol. 3, No. 8, pp. 279-285, Aug 2012 (ISSN 2221-1152) An Empirical Study of Association between Working Capal Management and Performance: Evidence from Tehran

More information

The Relationship between Return on Equity and Investment Opportunities of the Firms Listed in Tehran Stock Exchange

The Relationship between Return on Equity and Investment Opportunities of the Firms Listed in Tehran Stock Exchange Research Journal of Recent Sciences ISSN 2277-252 Res.J.Recent Sci. The Relationship between Return on Equity and Investment Opportunities of the Firms Listed in Tehran Stock Exchange Davood Hassanpoor

More information

Dr. Pushpa Bhatt, Sumangala JK Department of Commerce, Bangalore University, India pushpa_bhatt12@rediffmail.com; sumangalajkashok@gmail.

Dr. Pushpa Bhatt, Sumangala JK Department of Commerce, Bangalore University, India pushpa_bhatt12@rediffmail.com; sumangalajkashok@gmail. Journal of Finance, Accounting and Management, 3(2), 1-14, July 2012 1 Impact of Earnings per share on Market Value of an equity share: An Empirical study in Indian Capital Market Dr. Pushpa Bhatt, Sumangala

More information

Advances in Environmental Biology, 7(10) October 2013, Pages: 3099-3115. Journal home page: http://www.aensiweb.com/aeb.html

Advances in Environmental Biology, 7(10) October 2013, Pages: 3099-3115. Journal home page: http://www.aensiweb.com/aeb.html AENSI Journals Advances in Environmental Biology Journal home page: http://www.aensiweb.com/aeb.html The Investigationofthe Relationship between Cash Holding and Working Capal wh Abnormal Stock Return

More information

Accounting Information and Stock Price Reaction of Listed Companies Empirical Evidence from 60 Listed Companies in Shanghai Stock Exchange

Accounting Information and Stock Price Reaction of Listed Companies Empirical Evidence from 60 Listed Companies in Shanghai Stock Exchange Journal of Business & Management Volume 2, Issue 2 (2013), 11-21 ISSN 2291-1995 E-ISSN 2291-2002 Published by Science and Education Centre of North America Accounting Information and Stock Price Reaction

More information

J. Life Sci. Biomed. 5(1): 21-25, 2015. 2015, Scienceline Publication ISSN 2251-9939

J. Life Sci. Biomed. 5(1): 21-25, 2015. 2015, Scienceline Publication ISSN 2251-9939 ORIGINAL ARTICLE PII: S225199391500005-5 Received 25 Nov. 2014 Accepted 09 Dec. 2014 JLSB Journal of J. Life Sci. Biomed. 5(1): 21-25, 2015 2015, Scienceline Publication Life Science and Biomedicine ISSN

More information

A survey of value relevance of the consolidate earnings and cash flows in the stock return of the companies listed in TSE

A survey of value relevance of the consolidate earnings and cash flows in the stock return of the companies listed in TSE International Research Journal of Applied and Basic Sciences 203 Available online at www.irjabs.com ISSN 225-838X / Vol, 6 (): 63-68 Science Explorer Publications A survey of value relevance of the consolidate

More information

STUDY THE RELATIONSHIP BETWEEN INVESTMENT OPPORTUNITIES AND EARNINGS STABILITY OF FIRMS IN TEHRAN SECURITIES EXCHANGE

STUDY THE RELATIONSHIP BETWEEN INVESTMENT OPPORTUNITIES AND EARNINGS STABILITY OF FIRMS IN TEHRAN SECURITIES EXCHANGE 2014 Vol. 4 (S4), pp. 24482455/Parvin and Mehrdad STUDY THE RELATIONSHIP BETWEEN INVESTMENT OPPORTUNITIES AND EARNINGS STABILITY OF FIRMS IN TEHRAN SECURITIES EXCHANGE Parvin Nafei 1, 2 and *Mehrdad Ghanbari

More information

A Study on the Effect of Working Capital Management on the Profitability of Listed Companies in Tehran Stock Exchange

A Study on the Effect of Working Capital Management on the Profitability of Listed Companies in Tehran Stock Exchange 2013, World of Researches Publication Ac. J. Acco. Eco. Res. Vol. 2, Issue 4, 121-130, 2013 Academic Journal of Accounting and Economic Researches www.worldofresearches.com A Study on the Effect of Working

More information

www.engineerspress.com The Study of Factors Affecting Working Capital of Pharmaceutical Companies Accepted in Tehran Stock Exchange

www.engineerspress.com The Study of Factors Affecting Working Capital of Pharmaceutical Companies Accepted in Tehran Stock Exchange www.engineerspress.com ISSN: 2307-3071 Year: 2013 Volume: 01 Issue: 14 Pages: 66-77 The Study of Factors Affecting Working Capital of Pharmaceutical Companies Accepted in Tehran Stock Exchange ABSTRACT

More information

Impact of Working Capital Management on Profitability and Market Evaluation: Evidence from Tehran Stock Exchange

Impact of Working Capital Management on Profitability and Market Evaluation: Evidence from Tehran Stock Exchange International Journal of Business and Social Science Vol. 3 No. 0 [Special Issue May 202] Impact of Working Capital Management on Profitability and Market Evaluation: Evidence from Tehran Stock Exchange

More information

An Investigation on Some Factors Affecting Accounting Accruals Persistence; Evidence From Tehran Stock Exchange (TSE)

An Investigation on Some Factors Affecting Accounting Accruals Persistence; Evidence From Tehran Stock Exchange (TSE) International Research Journal of Applied and Basic Sciences 2015 Available online at www.irjabs.com ISSN 2251-838X / Vol, 9 (10): 1744-1749 Science Explorer Publications An Investigation on Some Factors

More information

The Relationship between Financial Accounting Information and Market Values of Quoted Firms in Nigeria

The Relationship between Financial Accounting Information and Market Values of Quoted Firms in Nigeria The Relationship between Financial Accounting Information and Market Values of Quoted Firms in Nigeria Adaramola Anthony Olugbenga, Department of Banking and Finance, Faculty of Management Sciences, Ekiti

More information

The relationship of cash flow prediction and accruals on the return of book value to market value in food industry listed in Tehran Stock Exchange

The relationship of cash flow prediction and accruals on the return of book value to market value in food industry listed in Tehran Stock Exchange Journal of Scientific Research and Development 2 (6): 27-31, 2015 Available online at www.jsrad.org ISSN 1115-7569 2015 JSRAD The relationship of cash flow prediction and accruals on the return of book

More information

Accounting Information, Value Relevance, and Investors Behavior in the Egyptian Equity Market

Accounting Information, Value Relevance, and Investors Behavior in the Egyptian Equity Market Accounting Information, Value Relevance, and Investors Behavior in the Egyptian Equity Market Aiman A. Ragab a and Mohammad M. Omran b,1 a College of Management & Technology, Arab Academy for Science &

More information

A comparative study of bankruptcy prediction models of Fulmer and Toffler in firms accepted in Tehran Stock Exchange

A comparative study of bankruptcy prediction models of Fulmer and Toffler in firms accepted in Tehran Stock Exchange Journal of Novel Applied Sciences Available online at www.jnasci.org 2013 JNAS Journal-2013-2-10/522-527 ISSN 2322-5149 2013 JNAS A comparative study of bankruptcy prediction models of Fulmer and Toffler

More information

Impact of Working Capital Management on the Performance of the Firms Listed on the Tehran Stock Exchange

Impact of Working Capital Management on the Performance of the Firms Listed on the Tehran Stock Exchange Vol. 3, No.3, July 2013, pp. 352 364 ISSN: 2225-8329 2013 HRMARS www.hrmars.com Impact of Working Capital Management on the Performance of the Firms Listed on the Tehran Stock Exchange Mehdi Rezaie AHMADABADI

More information

THE EFFECT OF COMPONENTS OF A 4 PARTS MODEL OF CASH FLOW STATEMENT ON OPERATIONAL PERFORMANCE IN FIRMS ENLISTED IN TEHRAN STOCK EXCHANGE

THE EFFECT OF COMPONENTS OF A 4 PARTS MODEL OF CASH FLOW STATEMENT ON OPERATIONAL PERFORMANCE IN FIRMS ENLISTED IN TEHRAN STOCK EXCHANGE ISSN: 0976-2876 (Print) ISSN: 2250-0138(Online) THE EFFECT OF COMPONENTS OF A 4 PARTS MODEL OF CASH FLOW STATEMENT ON OPERATIONAL PERFORMANCE IN FIRMS ENLISTED IN TEHRAN STOCK EXCHANGE YADOLLAH TARIVERDI

More information

Examining the Effect of Discretionary Accrual's on Stock Liquidity of Companies Listed in TSE: A Comprehensive Index for Liquidity

Examining the Effect of Discretionary Accrual's on Stock Liquidity of Companies Listed in TSE: A Comprehensive Index for Liquidity 2013, TextRoad Publication ISSN 2090-4304 Journal of Basic and Applied Scientific Research www.textroad.com Examining the Effect of Discretionary Accrual's on Stock Liquidity of Companies Listed in TSE:

More information

A study of economic index effects on return on equity in iranian companies

A study of economic index effects on return on equity in iranian companies International Research Journal of Applied and Basic Sciences. Vol., 3 (8), 1691-1696, 2012 Available online at http:// www. irjabs.com ISSN 2251-838X 2012 A study of economic index effects on return on

More information

A Panel Data Analysis of Corporate Attributes and Stock Prices for Indian Manufacturing Sector

A Panel Data Analysis of Corporate Attributes and Stock Prices for Indian Manufacturing Sector Journal of Modern Accounting and Auditing, ISSN 1548-6583 November 2013, Vol. 9, No. 11, 1519-1525 D DAVID PUBLISHING A Panel Data Analysis of Corporate Attributes and Stock Prices for Indian Manufacturing

More information

The relationship between capital structure and firm performance. 3-Hamid Reza Ranjbar Jamal Abadi, Master of Accounting, Science and

The relationship between capital structure and firm performance. 3-Hamid Reza Ranjbar Jamal Abadi, Master of Accounting, Science and The relationship between capital structure and firm performance 1-Abolfazl Mahmoudi,Master of Accounting(Corresponding Author) 2-Ali Reza Yazdani,Master of student, accounting, Science and ResearchCenter,

More information

WHEN DO COMPANIES FUND THEIR DEFINED BENEFIT PENSION PLANS? Denise A. Jones, College of William & Mary

WHEN DO COMPANIES FUND THEIR DEFINED BENEFIT PENSION PLANS? Denise A. Jones, College of William & Mary ACCOUNTING & TAXATION Volume 6 Number 1 2014 WHEN DO COMPANIES FUND THEIR DEFINED BENEFIT PENSION PLANS? Denise A. Jones, College of William & Mary ABSTRACT This paper extends the accounting academic lerature

More information

Manipulation of profit figures associated with the bankruptcy of companies listed in Tehran Stock Exchange

Manipulation of profit figures associated with the bankruptcy of companies listed in Tehran Stock Exchange International Research Journal of pplied and Basic Sciences 2013 vailable online at www.irjabs.com ISSN 2251-838X / Vol, 6 (12): 1829-1835 Science Explorer Publications Manipulation of prof figures associated

More information

Evaluating Effect of Free Float on Liquidity Increase, Depth and Efficiency of Companies Listed in Tehran Stock Exchange

Evaluating Effect of Free Float on Liquidity Increase, Depth and Efficiency of Companies Listed in Tehran Stock Exchange 2014 (4): 1-7 Evaluating Effect of Free Float on Liquidity Increase, Depth and Efficiency of Companies Listed in Tehran Stock Exchange Mohammad Reza Shahrasbi 1, Dr. Mehdi Taghavi 2, Dr. Kambiz Hozhabr

More information

Association Between Accounting Conservatism and Return on Investment in Listed Companies on Tehran Stock Exchange

Association Between Accounting Conservatism and Return on Investment in Listed Companies on Tehran Stock Exchange World Applied Sciences Journal 23 (9): 1140-1145, 2013 ISSN 1818-4952 IDOSI Publications, 2013 DOI: 10.5829/idosi.wasj.2013.23.09.879 Association Between Accounting Conservatism and Return on Investment

More information

The effect of capital structure on the working capital and growth opportunity of the listed firms on Tehran Stock Exchange

The effect of capital structure on the working capital and growth opportunity of the listed firms on Tehran Stock Exchange Science Arena Publications Specialty Journal of Accounting and Economics Available online at www.sciarena.com 2015, Vol, 1 (1): 25-36 The effect of capital structure on the working capital and growth opportunity

More information

An Investigation into the relationship between working capital management and stock price. (Evidence of tehran stock exchange)

An Investigation into the relationship between working capital management and stock price. (Evidence of tehran stock exchange) www.ijrls.pharmascope.org An Investigation into the relationship between working capital management and stock price (Evidence of tehran stock exchange) Mohammad Ali Karchani* 1, Ibrahim Givaki 2 ISSN 2231-2935

More information

Research on the Influence Factors of Financial Risk for Small and Mediumsized

Research on the Influence Factors of Financial Risk for Small and Mediumsized Research on the Influence Factors of Financial Risk for Small and Mediumsized Enterprise An Empirical Analysis from 216 Companies of Small Plates, ShenZhen Stock Exchange, China 4 Fu Gang Associate professor,

More information

PREDICTION FINANCIAL DISTRESS BY USE OF LOGISTIC IN FIRMS ACCEPTED IN TEHRAN STOCK EXCHANGE

PREDICTION FINANCIAL DISTRESS BY USE OF LOGISTIC IN FIRMS ACCEPTED IN TEHRAN STOCK EXCHANGE PREDICTION FINANCIAL DISTRESS BY USE OF LOGISTIC IN FIRMS ACCEPTED IN TEHRAN STOCK EXCHANGE * Havva Baradaran Attar Moghadas 1 and Elham Salami 2 1 Lecture of Accounting Department of Mashad PNU University,

More information

Lina Warrad. Applied Science University, Amman, Jordan

Lina Warrad. Applied Science University, Amman, Jordan Journal of Modern Accounting and Auditing, March 2015, Vol. 11, No. 3, 168-174 doi: 10.17265/1548-6583/2015.03.006 D DAVID PUBLISHING The Effect of Net Working Capital on Jordanian Industrial and Energy

More information

OULU BUSINESS SCHOOL. Wang Meng THE IMPACT OF EARNINGS MANAGEMENT ON ACCOUNTING CONSERVATISM

OULU BUSINESS SCHOOL. Wang Meng THE IMPACT OF EARNINGS MANAGEMENT ON ACCOUNTING CONSERVATISM OULU BUSINESS SCHOOL Wang Meng THE IMPACT OF EARNINGS MANAGEMENT ON ACCOUNTING CONSERVATISM Master s Thesis Department of Accounting August, 2012 Un Department of Accounting Author Supervisor Wang Meng

More information

1 http://www.fasb.org/summary/stsum86.shtml

1 http://www.fasb.org/summary/stsum86.shtml 1. Introduction The value of intangibles has lately been the subject of much attention, both in practice and in academic research. There have been a wide range of studies regarding different types of intangibles

More information

Assessing Asymmetrical Relationship between Cash Flow Sensitivity and Operating Cash Flow

Assessing Asymmetrical Relationship between Cash Flow Sensitivity and Operating Cash Flow ORIGINAL ARTICLE Received 18 Dec. 2013 Accepted 11 Feb. 2014 2014, Science-Line Publication www.science-line.com ISSN: 2322-4770 Journal of Educational and Management Studies J. Educ. Manage. Stud.,4 (2):

More information

The Study of Working Capital Strategies in Life Cycle of Companies

The Study of Working Capital Strategies in Life Cycle of Companies 2013, World of Researches Publication Ac. J. Acco. Eco. Res. Vol. 2, Issue 4, 77-88, 2013 Academic Journal of Accounting and Economic Researches www.worldofresearches.com The Study of Working Capital Strategies

More information

The Relationship between Working Capital Management and Firm Performance: Evidence from Iran

The Relationship between Working Capital Management and Firm Performance: Evidence from Iran International Journal of Humanities and Social Science Vol. 2 No. 2 [Special Issue January 2012] The Relationship between Working Capital Management and Firm Performance: Evidence from Iran Abstract Zahra

More information

Examine the Relationship between Financial Performance and Capital Structure, Free Cash and Operational Risks in Governmental Companies

Examine the Relationship between Financial Performance and Capital Structure, Free Cash and Operational Risks in Governmental Companies ORIGINAL ARTICLE Received 14 Feb. 2014 Accepted 25 Jul. 2014 2014, Science-Line Publication www.science-line.com ISSN: 2322-4770 Journal of Educational and Management Studies J. Educ. Manage. Stud., 4(3):

More information

Effect of working capital and financial decision making management on profitability of listed companies in Tehran s securities exchange

Effect of working capital and financial decision making management on profitability of listed companies in Tehran s securities exchange Effect of working capital and financial decision making management on profitability of listed companies in Tehran s securities exchange Masoomeh Shahnazi 2 (Shahnazi1393@gmail.com) Keyhan Azadi 1 (Ka.cpa2012yahoo.com)

More information

Lecture 8: Stock market reaction to accounting data

Lecture 8: Stock market reaction to accounting data Lecture 8: Stock market reaction to accounting data In this lecture we will focus on how the market appears to evaluate accounting disclosures. For most of the time, we shall be examining the results of

More information

Value relevance of discretionary accruals under environmental uncertainty: the incidence of IFRS and the country s legal regime

Value relevance of discretionary accruals under environmental uncertainty: the incidence of IFRS and the country s legal regime Int. J. Accounting, Auding and Performance Evaluation, Vol. 11, No. 2, 2015 161 Value relevance of discretionary accruals under environmental uncertainty: the incidence of IFRS and the country s legal

More information

The Accounting and Economic Effects of Currency Translation Standards: AASB 1012 vs. AASB 121

The Accounting and Economic Effects of Currency Translation Standards: AASB 1012 vs. AASB 121 Journal of Modern Accounting and Auditing, ISSN 1548-6583 November 2012, Vol. 8, No. 11, 1601-1610 D DAVID PUBLISHING The Accounting and Economic Effects of Currency Translation Standards: AASB 1012 vs.

More information

The Value Relevance of Earnings and Book Value: The Importance of Ownership Concentration and Firm Size

The Value Relevance of Earnings and Book Value: The Importance of Ownership Concentration and Firm Size The Value Relevance of Earnings and Book Value: The Importance of Ownership Concentration and Firm Size Pathirawasam Chandrapala Abstract The purpose of this paper is to investigate the impact of ownership

More information

Online Publication Date: 1 st August 2012 Publisher: Asian Economic and Social Society

Online Publication Date: 1 st August 2012 Publisher: Asian Economic and Social Society Online Publication Date: 1 st August 2012 Publisher: Asian Economic and Social Society The Study of Improvement of the Level of Access to Capital Market on Efficiency of Tehran Stock Exchange Amir Hossein

More information

The Impact of Company Characteristics on Working Capital Management

The Impact of Company Characteristics on Working Capital Management Journal of Applied Finance & Banking, vol.2, no.1, 2012, 105-125 ISSN: 1792-6580 (print version), 1792-6599 (online) International Scientific Press, 2012 The Impact of Company Characteristics on Working

More information

THE EFFECT OF R&D EXPENDITURE (INVESTMENTS) ON FIRM VALUE: CASE OF ISTANBUL STOCK EXCHANGE

THE EFFECT OF R&D EXPENDITURE (INVESTMENTS) ON FIRM VALUE: CASE OF ISTANBUL STOCK EXCHANGE THE EFFECT OF R&D EXPENDITURE (INVESTMENTS) ON FIRM VALUE: CASE OF ISTANBUL STOCK EXCHANGE Pinar Başgoze 1, H. Cem Sayin 2 1 Hacettepe University, Department of Business Administration, Ankara, Turkey.

More information

Effects of Working Capital Management on Firm Performance: An Empirical Study of Non-financial listed Firms in Pakistan

Effects of Working Capital Management on Firm Performance: An Empirical Study of Non-financial listed Firms in Pakistan Effects of Working Capal Management on Firm Performance: An Empirical Study of Non-financial listed Firms in Pakistan Naeem Ul Hassan Lahore Leads Universy, Lahore, Pakistan Corresponding email: naeemsehar@gmail.com

More information

Impact of Debt Financing and Effective Debt Management on Performance Assessment in Tehran Stock Exchange

Impact of Debt Financing and Effective Debt Management on Performance Assessment in Tehran Stock Exchange Impact of Debt Financing and Effective Debt Management on Performance Assessment in Tehran Stock Exchange Mohammad Nazaripour Department of Accounting, University of Kurdistan, Sanandaj, Iran Email: mnazaripour@yahoo.com

More information

An Empirical Study of Influential Factors of Debt Financing

An Empirical Study of Influential Factors of Debt Financing ISSN 1479-3889 (print), 1479-3897 (online) International Journal of Nonlinear Science Vol.3(2007) No.3,pp.208-212 An Empirical Study of Influential Factors of Debt Financing Jing Wu School of Management,

More information

The Stock Market s Reaction to Accounting Information: The Case of the Latin American Integrated Market. Abstract

The Stock Market s Reaction to Accounting Information: The Case of the Latin American Integrated Market. Abstract The Stock Market s Reaction to Accounting Information: The Case of the Latin American Integrated Market Abstract The purpose of this paper is to explore the stock market s reaction to quarterly financial

More information

Impact of Firm Specific Factors on the Stock Prices: A Case Study on Listed Manufacturing Companies in Colombo Stock Exchange.

Impact of Firm Specific Factors on the Stock Prices: A Case Study on Listed Manufacturing Companies in Colombo Stock Exchange. Impact of Firm Specific Factors on the Stock Prices: A Case Study on Listed Manufacturing Companies in Colombo Stock Exchange. Abstract: Ms. Sujeewa Kodithuwakku Department of Business Finance, Faculty

More information

Recent evidence on concentration and competition in Turkish banking sector

Recent evidence on concentration and competition in Turkish banking sector Theoretical and Applied Economics Volume XIX (2012), No. 8(573), pp. 19-28 Recent evidence on concentration and competion in Turkish banking sector Fatih MACIT Suleyman Sah Universy, Istambul, Turkey fmac@ssu.edu.tr

More information

Investigation of Relationship between Ownership Concentration and Auditing Fees in listed firms of Tehran Stock Exchange

Investigation of Relationship between Ownership Concentration and Auditing Fees in listed firms of Tehran Stock Exchange Investigation of Relationship between Ownership Concentration and Auditing Fees in listed firms of Tehran Stock Exchange Mahmood Yahyazadehfar Professor of Finance, Faculty of Economics and Administrative

More information

Working Capital Management and Corporate Profitability: Evidence from Iran

Working Capital Management and Corporate Profitability: Evidence from Iran World Applied Sciences Journal 12 (7): 1093-1099, 2011 ISSN 1818-4952 IDOSI Publications, 2011 Working Capital Management and Corporate Profitability: Evidence from Iran Mohammad Alipour Islamic Azad University,

More information

Do Firms Use Discretionary Revenues to Meet Earnings and Revenue Targets?

Do Firms Use Discretionary Revenues to Meet Earnings and Revenue Targets? Do Firms Use Discretionary Revenues to Meet Earnings and Revenue Targets? Stephen R. Stubben* Graduate School of Business Stanford Universy February 2006 Abstract: This paper addresses two questions related

More information

Discussion of Which Approach to Accounting for Employee Stock Options Best Reflects Market Pricing?

Discussion of Which Approach to Accounting for Employee Stock Options Best Reflects Market Pricing? Discussion of Which Approach to Accounting for Employee Stock Options Best Reflects Market Pricing? David Aboody daboody@anderson.ucla.edu UCLA Anderson School of Management, 110 Westwood Plaza, Los Angeles,

More information

Persistence of Value Relevance of the Employee Stock Options: An Investor Perspective in Biotech Industry

Persistence of Value Relevance of the Employee Stock Options: An Investor Perspective in Biotech Industry Persistence of Value Relevance of the Employee Stock Options: An Investor Perspective in Biotech Industry Sara Aliabadi Assistant Professor of Accounting, College of Business and Management, Department

More information

The impact of credit ratings on firms capital structure decisions. A study on the European market

The impact of credit ratings on firms capital structure decisions. A study on the European market School of Economics and Management Department of Business Administration FEKH95 Degree project undergraduate level Spring term 2012 The impact of cred ratings on firms capal structure decisions A study

More information

Management Science Letters

Management Science Letters Management Science Letters 5 (2015) 1 10 Contents lists available at GrowingScience Management Science Letters homepage: www.growingscience.com/msl Joint impact of ERP systems and non financial performance

More information

The Role of The Capital Market in The Cost of Capital of Perrochemical Companies Listed in Tehran Stock Exchange (Tse)

The Role of The Capital Market in The Cost of Capital of Perrochemical Companies Listed in Tehran Stock Exchange (Tse) The Role of The Capital Market in The Cost of Capital of Perrochemical Companies Listed in Tehran Stock Exchange (Tse) Nazar Dahmardeh Ghaleno *, Nadia Khosravi ** * Associate professor of Economics University

More information

Accounting Conservatism, the Quality of Earnings, and Stock Returns

Accounting Conservatism, the Quality of Earnings, and Stock Returns Accounting Conservatism, the Qualy of Earnings, and Stock Returns Stephen H. Penman Graduate School of Business Columbia Universy and Xiao-Jun Zhang Haas School of Business Universy of California, Berkeley

More information

Working Capital Management and Profitability: The Case of Industrial Firms in Jordan

Working Capital Management and Profitability: The Case of Industrial Firms in Jordan European Journal of Economics, Finance and Administrative Sciences ISSN 1450-2275 Issue 36 (2011) EuroJournals, Inc. 2011 http://www.eurojournals.com Working Capal Management and Profabily: The Case of

More information

Earnings Announcement and Abnormal Return of S&P 500 Companies. Luke Qiu Washington University in St. Louis Economics Department Honors Thesis

Earnings Announcement and Abnormal Return of S&P 500 Companies. Luke Qiu Washington University in St. Louis Economics Department Honors Thesis Earnings Announcement and Abnormal Return of S&P 500 Companies Luke Qiu Washington University in St. Louis Economics Department Honors Thesis March 18, 2014 Abstract In this paper, I investigate the extent

More information

The Value-Relevance of Accounting Figures in the International Oil and Gas Industry: Cash Flows or Accruals?

The Value-Relevance of Accounting Figures in the International Oil and Gas Industry: Cash Flows or Accruals? The Value-Relevance of Accounting Figures in the International Oil and Gas Industry: Cash Flows or Accruals? Bård Misund, Petter Osmundsen, Frank Asche Background Analysts want to successfully predict

More information

PAAC 1601 FINANCIAL ACCOUNTING RESEARCH BENTLEY UNIVERSITY THURSDAYS 10:00-1:00 JEN 220. Office Hours: Thursday 1:00pm 2:30pm and by appt

PAAC 1601 FINANCIAL ACCOUNTING RESEARCH BENTLEY UNIVERSITY THURSDAYS 10:00-1:00 JEN 220. Office Hours: Thursday 1:00pm 2:30pm and by appt PAAC 1601 FINANCIAL ACCOUNTING RESEARCH BENTLEY UNIVERSITY INSTRUCTOR: Dr. Anne Leah Schnader OFFICE: Location: Morison 119 THURSDAYS 10:00-1:00 JEN 220 Office Hours: Thursday 1:00pm 2:30pm and by appt

More information

To survey the effect of working capital policies (investing & financing) on profitability risk (evidence from Tehran stock exchange)

To survey the effect of working capital policies (investing & financing) on profitability risk (evidence from Tehran stock exchange) Journal of Investment and Management 2014; 3(1): 30-36 Published online March 10, 2014 (http://www.sciencepublishinggroup.com/j/jim) doi: 10.11648/j.jim.20140301.14 To survey the effect of working capital

More information

THREAT OF INSOLVENCY OF PRIVATE SECTOR COMPANIES ON THE EXAMPLE OF POLAND, CZECH REPUBLIC AND SLOVAKIA

THREAT OF INSOLVENCY OF PRIVATE SECTOR COMPANIES ON THE EXAMPLE OF POLAND, CZECH REPUBLIC AND SLOVAKIA THREAT OF INSOLVENCY OF PRIVATE SECTOR COMPANIES ON THE EXAMPLE OF POLAND, CZECH REPUBLIC AND SLOVAKIA Dr hab. Justyna Franc-Dąbrowska, Warsaw Universy of Life Science Email: justyna_franc_dabrowska@sggw.pl

More information

Investigating the Relationship between Working Capital Management and Net Trade Cycle, with the Profitability: Evidence from Tehran Stock Exchange

Investigating the Relationship between Working Capital Management and Net Trade Cycle, with the Profitability: Evidence from Tehran Stock Exchange Applied mathematics in Engineering, Management and Technology 2 (6) 2014:74-83 www.amiemt-journal.com Investigating the Relationship between Working Capital Management and Net Trade Cycle, with the Profitability:

More information

Comparing Stock Valuation Models for Indian Bank Stocks

Comparing Stock Valuation Models for Indian Bank Stocks International Journal of Accounting and Taxation June 2014, Vol. 2, No. 2, pp. 111-127 ISSN: 2372-4978 (Print), 2372-4986 (Online) Copyright The Author(s). 2014. All ights eserved. Published by American

More information

Journal Of Financial And Strategic Decisions Volume 9 Number 2 Summer 1996

Journal Of Financial And Strategic Decisions Volume 9 Number 2 Summer 1996 Journal Of Financial And Strategic Decisions Volume 9 Number 2 Summer 1996 THE USE OF FINANCIAL RATIOS AS MEASURES OF RISK IN THE DETERMINATION OF THE BID-ASK SPREAD Huldah A. Ryan * Abstract The effect

More information

A Study of information asymmetry using Bid-Ask spread on firm value: evidence from Tehran Stock Exchange

A Study of information asymmetry using Bid-Ask spread on firm value: evidence from Tehran Stock Exchange International Research Journal of Applied and Basic Sciences 2013 Available online at www.irjabs.com ISSN 2251-838X / Vol, 4 (9): 2872-2876 Science Explorer Publications A Study of information asymmetry

More information

Loan policy and bank performance: evidence from Taiwan

Loan policy and bank performance: evidence from Taiwan Hsien-Chang Kuo (Taiwan), Lie-Huey Wang (Taiwan), Yi-Hsun Lai (Taiwan), Shuhui Yu (Taiwan), Chinfu Wu (Taiwan) Loan policy and bank performance: evidence from Taiwan Abstract This study aims to investigate

More information

Examine the Relationship between Capital Structure, Free Cash and Operational Risks

Examine the Relationship between Capital Structure, Free Cash and Operational Risks International Research Journal of Management Sciences. Vol., 3 (7), 303-307, 2015 Available online at http://www.irjmsjournal.com ISSN 2147-964x 2015 Examine the Relationship between Capital Structure,

More information

Cross Sectional Analysis of Short Sale Determinants on U.S. Blue Chips

Cross Sectional Analysis of Short Sale Determinants on U.S. Blue Chips DOI: 10.5817/FAI2015-2-2 No. 2/2015 Cross Sectional Analysis of Short Sale Determinants on U.S. Blue Chips Dagmar Linnertová Masaryk University Faculty of Economics and Administration, Department of Finance

More information

Impact of working capital management on profitability ratios: evidence from Iran

Impact of working capital management on profitability ratios: evidence from Iran Impact of working capital management on profitability ratios: evidence from Iran Seyed Javad Habibzadeh Baygi Accounting Department, j.habibzade@gmail.com Islamic Azad University, Mashhad Branch, Department

More information

INVESTIGATION OF EFFECTIVE FACTORS IN USING MOBILE ADVERTISING IN ANDIMESHK. Abstract

INVESTIGATION OF EFFECTIVE FACTORS IN USING MOBILE ADVERTISING IN ANDIMESHK. Abstract INVESTIGATION OF EFFECTIVE FACTORS IN USING MOBILE ADVERTISING IN ANDIMESHK Mohammad Ali Enayati Shiraz 1, Elham Ramezani 2 1-2 Department of Industrial Management, Islamic Azad University, Andimeshk Branch,

More information

Folia Oeconomica Stetinensia DOI: 10.2478/v10031-012-0001-1 THE RELATION OF WORKING CAPITAL AND FIXED ASSETS: A STUDY

Folia Oeconomica Stetinensia DOI: 10.2478/v10031-012-0001-1 THE RELATION OF WORKING CAPITAL AND FIXED ASSETS: A STUDY Folia Oeconomica Stetinensia DOI: 10.2478/v10031-012-0001-1 THE RELATION OF WORKING CAPITAL AND FIXED ASSETS: A STUDY Mahdi Salehi, Ph.D. Ferdowsi University of Mashhad, Iran Faculty of Economics and Business

More information

USING THE ETS MAJOR FIELD TEST IN BUSINESS TO COMPARE ONLINE AND CLASSROOM STUDENT LEARNING

USING THE ETS MAJOR FIELD TEST IN BUSINESS TO COMPARE ONLINE AND CLASSROOM STUDENT LEARNING USING THE ETS MAJOR FIELD TEST IN BUSINESS TO COMPARE ONLINE AND CLASSROOM STUDENT LEARNING Andrew Tiger, Southeastern Oklahoma State University, atiger@se.edu Jimmy Speers, Southeastern Oklahoma State

More information

The Effect of Management Entrenchment on the Equity Capital in Iran

The Effect of Management Entrenchment on the Equity Capital in Iran Pak J Commer Soc Sci Pakistan Journal of Commerce and Social Sciences 2013, Vol. 7 (1), 19-26 The Effect of Management Entrenchment on the Equity Capital in Iran Somayeh Baratiyan Accounting Department,

More information

Exclusion of Stock-based Compensation Expense from Analyst Earnings Forecasts: Incentive- and Information-based Explanations. Mary E.

Exclusion of Stock-based Compensation Expense from Analyst Earnings Forecasts: Incentive- and Information-based Explanations. Mary E. Exclusion of Stock-based Compensation Expense from Analyst Earnings Forecasts: Incentive- and Information-based Explanations Mary E. Barth* Ian D. Gow Daniel J. Taylor Graduate School of Business Stanford

More information

Available online www.jocpr.com. Journal of Chemical and Pharmaceutical Research, 2014, 6(6):2012-2019. Research Article

Available online www.jocpr.com. Journal of Chemical and Pharmaceutical Research, 2014, 6(6):2012-2019. Research Article Available online www.jocpr.com Journal of Chemical and Pharmaceutical Research, 2014, 6(6):2012-2019 Research Article ISSN : 0975-7384 CODEN(USA) : JCPRC5 Effects of financing factors on investment behavior

More information

Determinants of Stock Market Performance in Pakistan

Determinants of Stock Market Performance in Pakistan Determinants of Stock Market Performance in Pakistan Mehwish Zafar Sr. Lecturer Bahria University, Karachi campus Abstract Stock market performance, economic and political condition of a country is interrelated

More information

Investigate the relationship between working capital management and agency costs for firms listed in Tehran Stock Exchange

Investigate the relationship between working capital management and agency costs for firms listed in Tehran Stock Exchange :103-111 www.amiemt-journal.com Investigate the relationship between working capital management and agency costs for firms listed in Tehran Stock Exchange Shahrzad Emrani, Dr. Hasan Hemati Department of

More information

THE EFFECT OF WORKING CAPITAL PRACTICES ON RISK MANAGEMENT: EVIDENCE FROM JORDAN Faris Nasif ALShubiri, Amman Arab University for Graduate Studies

THE EFFECT OF WORKING CAPITAL PRACTICES ON RISK MANAGEMENT: EVIDENCE FROM JORDAN Faris Nasif ALShubiri, Amman Arab University for Graduate Studies GLOBAL JOURNAL OF BUSINESS RESEARCH VOLUME 5 NUMBER 0 THE EFFECT OF WORKING CAPITAL PRACTICES ON RISK MANAGEMENT: EVIDENCE FROM JORDAN Faris Nasif ALShubiri, Amman Arab Universy for Graduate Studies ABSTRACT

More information

Information System and Firms Performance: The Case of Malaysian Small Medium Enterprises

Information System and Firms Performance: The Case of Malaysian Small Medium Enterprises Information System and Firms Performance: The Case of Malaysian Small Medium Enterprises Saira Kharuddin (Corresponding author) Dept. of Accounting and Finance, Faculty of Economics and Management, Universi

More information

R&D and Software Firms Productivity and Efficiency: Empirical Evidence of Global Top R&D Spending Firms

R&D and Software Firms Productivity and Efficiency: Empirical Evidence of Global Top R&D Spending Firms , pp.165-176 http://dx.doi.org/10.14257/ijh.2014.7.2.16 R&D and Software Firms Productivy and Efficiency: Empirical Evidence of Global Top R&D Spending Firms Dan Tian School of Management Science and Engineering,

More information

IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY

IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY IMPACT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY Hina Agha, Mba, Mphil Bahria University Karachi Campus, Pakistan Abstract The main purpose of this study is to empirically test the impact of working

More information

Study of the Role of Accounting Information on Investor's Decision Making in Tehran Stock Exchange

Study of the Role of Accounting Information on Investor's Decision Making in Tehran Stock Exchange 2013, TextRoad Publication ISSN 2090-4304 Journal of Basic and Applied Scientific Research www.textroad.com Study of the Role of Accounting Information on Investor's Decision Making in Tehran Stock Exchange

More information

The effect of real earnings management on the information content of earnings

The effect of real earnings management on the information content of earnings The effect of real earnings management on the information content of earnings ABSTRACT George R. Wilson Northern Michigan University This study investigates the effect of real earnings management (REM)

More information

Multiplicative regression models. of the relationship between accounting numbers and market value

Multiplicative regression models. of the relationship between accounting numbers and market value Multiplicative regression models of the relationship between accounting numbers and market value Abstract The validity of ordinary least squares (OLS) estimates of relationships between accounting numbers

More information

Professor Eli Bartov. Ph.D. Seminar, Fall 2006 B10.4311.01: EQUITY VALUATION & ACCOUNTING DATA

Professor Eli Bartov. Ph.D. Seminar, Fall 2006 B10.4311.01: EQUITY VALUATION & ACCOUNTING DATA Professor Eli Bartov Ph.D. Seminar, Fall 2006 B10.4311.01: EQUITY VALUATION & ACCOUNTING DATA 1. Format The class format will be as follows: (i) (ii) In each class we will cover 2-4 published and/or working

More information

The relationships between stock market capitalization rate and interest rate: Evidence from Jordan

The relationships between stock market capitalization rate and interest rate: Evidence from Jordan Peer-reviewed & Open access journal ISSN: 1804-1205 www.pieb.cz BEH - Business and Economic Horizons Volume 2 Issue 2 July 2010 pp. 60-66 The relationships between stock market capitalization rate and

More information

The Multi-Item Capacitated Lot-Sizing Problem With Safety Stocks In Closed-Loop Supply Chain

The Multi-Item Capacitated Lot-Sizing Problem With Safety Stocks In Closed-Loop Supply Chain International Journal of Mining Metallurgy & Mechanical Engineering (IJMMME) Volume 1 Issue 5 (2013) ISSN 2320-4052; EISSN 2320-4060 The Multi-Item Capacated Lot-Sizing Problem Wh Safety Stocks In Closed-Loop

More information

Testing Value Relevance of Accounting Earnings: Theory and Method

Testing Value Relevance of Accounting Earnings: Theory and Method Testing Value Relevance of Accounting Earnings: Theory and Method Karol Marek Klimczak* Abstract Relevance of accounting earnings for market value of companies has been subject to numerous empirical studies.

More information

Earnings Management: New Evidence. Based on Deferred Tax Expense

Earnings Management: New Evidence. Based on Deferred Tax Expense Earnings Management: New Evidence Based on Deferred Tax Expense John Phillips Universy of Connecticut Morton Pincus * Universy of Iowa Sonja Olhoft Rego Universy of Iowa October 2, 2002 (Previous Versions:

More information

Investigating the Relationship between Working Capital Policy and Operational Risks in Listed Companies in Tehran Stock Exchange

Investigating the Relationship between Working Capital Policy and Operational Risks in Listed Companies in Tehran Stock Exchange ORIGINAL ARTICLE Received 18 Jun. 2014 Accepted 25 Aug. 2014 2014, Science-Line Publication www.science-line.com ISSN: 2322-4770 Journal of Educational and Management Studies J. Educ. Manage. Stud., 4(4):

More information

Earnings, Cash Flows and Ex post Intrinsic Value of Equity

Earnings, Cash Flows and Ex post Intrinsic Value of Equity Earnings, Cash Flows and Ex post Intrinsic Value of Equity K.R. Subramanyam Leventhal School of Accounting University of Southern California Los Angeles CA 90089-0441 (213)-740-5017 Email: krs@marshall.usc.edu

More information

From Saving to Investing: An Examination of Risk in Companies with Direct Stock Purchase Plans that Pay Dividends

From Saving to Investing: An Examination of Risk in Companies with Direct Stock Purchase Plans that Pay Dividends From Saving to Investing: An Examination of Risk in Companies with Direct Stock Purchase Plans that Pay Dividends Raymond M. Johnson, Ph.D. Auburn University at Montgomery College of Business Economics

More information

Real and reporting effects of IFRS induced accounting changes for convertible debt. Adam Esplin Mark R. Huson Christina Mashruwala Heather Wier*

Real and reporting effects of IFRS induced accounting changes for convertible debt. Adam Esplin Mark R. Huson Christina Mashruwala Heather Wier* Real and reporting effects of IFRS induced accounting changes for convertible debt Adam Esplin Mark R. Huson Christina Mashruwala Heather Wier* Universy of Alberta July 13, 2015 Abstract We examine whether

More information

Does Accounting Quality Change Following a Switch from U.S. GAAP to IFRS? Evidence from Germany. Stephen Lin* William Riccardi Changjiang (John) Wang

Does Accounting Quality Change Following a Switch from U.S. GAAP to IFRS? Evidence from Germany. Stephen Lin* William Riccardi Changjiang (John) Wang Does Accounting Quality Change Following a Switch from U.S. GAAP to IFRS? Evidence from Germany Stephen Lin* William Riccardi Changjiang (John) Wang Florida International University January 2012 *corresponding

More information