University of Isfahan Financial Accounting Research 2322-3405 9 3 2017 11 22 Audit Committee Characteristics and Financial Restatements Audit Committee Characteristics and Financial Restatements 1 16 22407 10.22108/far.2017.103506.1063 FA Javad Rezazadeh Associate Professor of Accounting, Imam Khomeini International University, Qazvin, Iran. Mostafa Abdi Ph.D. Student of Accounting, Islamic Azad University, Qazvin, Iran. Mahdi Kazemi Olum Ph.D. Student of Accounting, Islamic Azad University, Qazvin, Iran. Journal Article 2017 04 17 This study examines the audit committee characteristics' effect on financial restatements. These characteristics include independence, size and expertise of its members. For investigations of this topic, a sample of 136 companies (544 observations) listed in the Tehran stock exchange during the years 1391 to 1394 and their data were analyzed. To test the hypothesis logit model (logistic regression) was used. The results showed that, there is a significant negative relationship between independence and expertise of the audit committee members with financial restatements, while the relationship between audit committee size and financial restatements is not significant. In summary, the evidence showed that Audit Committee characteristics' affect restatements and audit Committee can strengthen the company's internal control structure, board monitoring responsibility and effectiveness of independent auditors will increase by reducing the likelihood of misstatement. This study examines the audit committee characteristics' effect on financial restatements. These characteristics include independence, size and expertise of its members. For investigations of this topic, a sample of 136 companies (544 observations) listed in the Tehran stock exchange during the years 1391 to 1394 and their data were analyzed. To test the hypothesis logit model (logistic regression) was used. The results showed that, there is a significant negative relationship between independence and expertise of the audit committee members with financial restatements, while the relationship between audit committee size and financial restatements is not significant. In summary, the evidence showed that Audit Committee characteristics' affect restatements and audit Committee can strengthen the company's internal control structure, board monitoring responsibility and effectiveness of independent auditors will increase by reducing the likelihood of misstatement.

https://far.ui.ac.ir/article_22407_8b32892eaa4d408b956141e464f39caf.pdf

University of Isfahan Financial Accounting Research 2322-3405 9 3 2017 11 22 Investigating the relationship between Managerial Overconfidence with Cash Holding and Cash-Flow Sensitivity of Cash Investigating the relationship between Managerial Overconfidence with Cash Holding and Cash-Flow Sensitivity of Cash 17 32 22425 10.22108/far.2018.104875.1113 FA Mohammad Kashanipour Associate Professor of Accounting, University of Tehran, Tehran, Iran. Mansour Mohamadi Ph.D Student of Accounting, University of Tehran, Tehran, Iran. Journal Article 2017 08 08 The main purpose of this paper is to investigate the relationship between managerial overconfidence with firm cash holding and also examine the effect of managerial overconfidence on the changes in the level of cash holdings in response to corporates’ cash flows (cash-flow sensitivity of cash) using a sample of 127 (762 firm - year observations) firm listed on Tehran stock exchange between 2010 to 2015. The panel data was used to test the hypothesis.The findings of this research indicates a positive significant relationship between the managerial overconfidence with cash holding. Also findings show that managerial overconfidence have significant positive effect on cash-flow sensitivity of cash. In other words, overconfidence manager save more cash out of their current cash flow. These findings in accordance with the idea that overconfidence managers views future external financing as excessively costly and try to hold more cash for financing investment projects. The main purpose of this paper is to investigate the relationship between managerial overconfidence with firm cash holding and also examine the effect of managerial overconfidence on the changes in the level of cash holdings in response to corporates’ cash flows (cash-flow sensitivity of cash) using a sample of 127 (762 firm - year observations) firm listed on Tehran stock exchange between 2010 to 2015. The panel data was used to test the hypothesis.The findings of this research indicates a positive significant relationship between the managerial overconfidence with cash holding. Also findings show that managerial overconfidence have significant positive effect on cash-flow sensitivity of cash. In other words, overconfidence manager save more cash out of their current cash flow. These findings in accordance with the idea that overconfidence managers views future external financing as excessively costly and try to hold more cash for financing investment projects.

https://far.ui.ac.ir/article_22425_57b9032f82ac05e6aa35cebde55274bb.pdf

University of Isfahan Financial Accounting Research 2322-3405 9 3 2017 11 22 Financial Statements Comparability and Real Earnings Management Financial Statements Comparability and Real Earnings Management 33 48 22250 10.22108/far.2017.103532.1064 FA Zohreh Hajiha Department of Accounting, Islamic Azad University, East Tehran Branch, Tehran, Iran Hassan Chenari Booket oung Researchers and Elite Club, South Tehran Branch, Islamic Azad University, Tehran, Iran Journal Article 2017 04 18 The aim of this study is investigation into the effect of financial statements comparability on real earnings management in the listed companies on Tehran Stock Exchange. Required data were collected from the financial statements of 80 firms during 1390-1394. To examine the hypotheses, we used multivariate regression with pooled data. Comparability of financial statements is calculated based on Di Franco et al. (2011). Real earnings management is calculated based on developed model by De chow et al (1998) and Chowdhury (2006). The results revealed that there is positive and significant relationship between financial statements comparability and real earnings management criteria (unusual operating cash flow, abnormal production costs and optional extraordinary costs). In other words, with increasing the comparability of financial statements, managers' tendency to real earnings management would be increased to present a desirable of their current performance by manipulating real activities such as overproduction and abnormal increase in sales volume. The aim of this study is investigation into the effect of financial statements comparability on real earnings management in the listed companies on Tehran Stock Exchange. Required data were collected from the financial statements of 80 firms during 1390-1394. To examine the hypotheses, we used multivariate regression with pooled data. Comparability of financial statements is calculated based on Di Franco et al. (2011). Real earnings management is calculated based on developed model by De chow et al (1998) and Chowdhury (2006). The results revealed that there is positive and significant relationship between financial statements comparability and real earnings management criteria (unusual operating cash flow, abnormal production costs and optional extraordinary costs). In other words, with increasing the comparability of financial statements, managers' tendency to real earnings management would be increased to present a desirable of their current performance by manipulating real activities such as overproduction and abnormal increase in sales volume.

https://far.ui.ac.ir/article_22250_036138b0c56d0972d4d32c127e15a97b.pdf

University of Isfahan Financial Accounting Research 2322-3405 9 3 2017 11 22 Business Cycles Effect on Relationship between Financial Leverage and Profitability Business Cycles Effect on Relationship between Financial Leverage and Profitability 49 66 22500 10.22108/far.2018.104438.1096 FA Maryam Davallou Assistant Professor, Finance & Accounting Depatment, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran Hassan Dargahi Associate Professor, Economics Depatment, Faculty of Economics & Politics, Shahid Beheshti University, Tehran, Iran MMaryam Hekmat Master of Finance, Shahid Beheshti University, Tehran, Iran Journal Article 2017 05 29 This paper is aimed to investigate the effect of business cycles on relationship between financial leverage and profitability. For this aim, a sample composed of listed firms in Tehran Stock Exchange is investigated for 1380 to 1393. Because interaction effect of capital structure and profitability, contemporaneous equation system is used to test the effect of business cycles on the relationship between later variables. Hodrick- Prescott and Crostino Fitzgrald Filters are used to determine business cycles. The findings from investigating the relationship between capital structure and profitability during recession situation show the reverse relationship between them. Study for this relationship in economic expansion indicates the negative effect of capital structure on profitability. Expansion years coincide with organizing stock exchange information situation, initiation of significant growth in trend of cyclical reports publications, physical expansion in capital markets and establishing over the counter markets that they consequently reduce information asymmetry that in turn result in higher motivation for stock issuance and lower borrowings and hence, debt to equity ratio is reduced. This paper is aimed to investigate the effect of business cycles on relationship between financial leverage and profitability. For this aim, a sample composed of listed firms in Tehran Stock Exchange is investigated for 1380 to 1393. Because interaction effect of capital structure and profitability, contemporaneous equation system is used to test the effect of business cycles on the relationship between later variables. Hodrick- Prescott and Crostino Fitzgrald Filters are used to determine business cycles. The findings from investigating the relationship between capital structure and profitability during recession situation show the reverse relationship between them. Study for this relationship in economic expansion indicates the negative effect of capital structure on profitability. Expansion years coincide with organizing stock exchange information situation, initiation of significant growth in trend of cyclical reports publications, physical expansion in capital markets and establishing over the counter markets that they consequently reduce information asymmetry that in turn result in higher motivation for stock issuance and lower borrowings and hence, debt to equity ratio is reduced. Keywords: Capital Structure, Profitability, Business Cycle. This paper is aimed to investigate the effect of business cycles on relationship between financial leverage and profitability. For this aim, a sample composed of listed firms in Tehran Stock Exchange is investigated for 1380 to 1393. Because interaction effect of capital structure and profitability, contemporaneous equation system is used to test the effect of business cycles on the relationship between later variables. Hodrick- Prescott and Crostino Fitzgrald Filters are used to determine business cycles. The findings from investigating the relationship between capital structure and profitability during recession situation show the reverse relationship between them. Study for this relationship in economic expansion indicates the negative effect of capital structure on profitability. Expansion years coincide with organizing stock exchange information situation, initiation of significant growth in trend of cyclical reports publications, physical expansion in capital markets and establishing over the counter markets that they consequently reduce information asymmetry that in turn result in higher motivation for stock issuance and lower borrowings and hence, debt to equity ratio is reduced. This paper is aimed to investigate the effect of business cycles on relationship between financial leverage and profitability. For this aim, a sample composed of listed firms in Tehran Stock Exchange is investigated for 1380 to 1393. Because interaction effect of capital structure and profitability, contemporaneous equation system is used to test the effect of business cycles on the relationship between later variables. Hodrick- Prescott and Crostino Fitzgrald Filters are used to determine business cycles. The findings from investigating the relationship between capital structure and profitability during recession situation show the reverse relationship between them. Study for this relationship in economic expansion indicates the negative effect of capital structure on profitability. Expansion years coincide with organizing stock exchange information situation, initiation of significant growth in trend of cyclical reports publications, physical expansion in capital markets and establishing over the counter markets that they consequently reduce information asymmetry that in turn result in higher motivation for stock issuance and lower borrowings and hence, debt to equity ratio is reduced. Keywords: Capital Structure, Profitability, Business Cycle.

https://far.ui.ac.ir/article_22500_ad8119e95e69a4ddd6e050eb22cf25b8.pdf

University of Isfahan Financial Accounting Research 2322-3405 9 3 2017 11 22 The Role of Corporate Governance in Firm`s Financial Distress: Pre- and Post-Internal Controls Instruction The Role of Corporate Governance in Firm`s Financial Distress: Pre- and Post-Internal Controls Instruction 67 90 22532 10.22108/far.2018.107504.1163 FA Mohammad Moradi Assistant professor, Department of Accounting, Faculty of Management, University of Tehran, Tehran, Iran. Sohrab Hosseinzadeh PhD. Student of Accounting, Faculty of Management, University of Tehran, Tehran, Iran. Journal Article 2017 11 03 Nowadays, with a more competitive capital market, and also more complicating market which investors are dealing with, it is not easy for market participants to distinguish between Financially Distressed and healthy firms. Accounting ratios and trend analyzes, in the literature was one of the ways of differentiate between those foresaid firms. This articles is about to investigate the role of corporate governance mechanism in diagnosing firms financial distress, alongside accounting ratios and market related information. The internal controls instruction also is regarded as a regulation in corporate governance and its impact on above mentioned role of corporate governance is under investigation. Sample includes 182 firms listed in Tehran stock exchange, during 2008 to 2017, is under statistical test. The test research hypothesis, multivariate regression analysis with Logit approach is used. Finding indicates that corporate governance has significant role in decreasing financial distress, but internal controls instructions, couldn’t strengthen mentioned role Nowadays, with a more competitive capital market, and also more complicating market which investors are dealing with, it is not easy for market participants to distinguish between Financially Distressed and healthy firms. Accounting ratios and trend analyzes, in the literature was one of the ways of differentiate between those foresaid firms. This articles is about to investigate the role of corporate governance mechanism in diagnosing firms financial distress, alongside accounting ratios and market related information. The internal controls instruction also is regarded as a regulation in corporate governance and its impact on above mentioned role of corporate governance is under investigation. Sample includes 182 firms listed in Tehran stock exchange, during 2008 to 2017, is under statistical test. The test research hypothesis, multivariate regression analysis with Logit approach is used. Finding indicates that corporate governance has significant role in decreasing financial distress, but internal controls instructions, couldn’t strengthen mentioned role

https://far.ui.ac.ir/article_22532_df83e148ebb7e0670319b0d6c73328fb.pdf

University of Isfahan Financial Accounting Research 2322-3405 9 3 2017 11 22 The Impact of Accounting Conservatism on the Investment Efficiency Considering Information Asymmerty The Impact of Accounting Conservatism on the Investment Efficiency Considering Information Asymmerty 91 110 22531 10.22108/far.2018.101188.1019 FA Ahmad Khodami Pour Associate Professor Accounting, University of Shahid Bahonar Kerman, Kerman, Irann Roghaieh Panahi Gonharani Masters of Accounting, University of Shahid Bahonar Kerman, Kerman, Iran Journal Article 2016 12 22 his study examines the impact of accounting conservatism on the investment efficiency considering information asymmetry. Also was examines relation conservatism and methods of future financing in the underinvestment companies. The conservatism measures based on the Basu model. Also information asymmetry measures based on the Venkatesh and Chiang model. In order to do research 78 firm that listed in Tehran Stock Exchange in the period 2006 to 2015 have been selected. The linear multivariate regressions have been used to test the hypotheses. The results show that impact of conservatism on investment performance is higher considering information asymmetry. Information asymmetry between investor cause more conservatism action in the financial reporting. Also conservatism reduces information asymmetry. So In the underinvest companies, conservatism increase the future investment through reducing the cost of financing. Moreover, the findings suggest that there is a significant relation between conservatism with methods of debt and equity future financing in the underinvestment companies. his study examines the impact of accounting conservatism on the investment efficiency considering information asymmetry. Also was examines relation conservatism and methods of future financing in the underinvestment companies. The conservatism measures based on the Basu model. Also information asymmetry measures based on the Venkatesh and Chiang model. In order to do research 78 firm that listed in Tehran Stock Exchange in the period 2006 to 2015 have been selected. The linear multivariate regressions have been used to test the hypotheses. The results show that impact of conservatism on investment performance is higher considering information asymmetry. Information asymmetry between investor cause more conservatism action in the financial reporting. Also conservatism reduces information asymmetry. So In the underinvest companies, conservatism increase the future investment through reducing the cost of financing. Moreover, the findings suggest that there is a significant relation between conservatism with methods of debt and equity future financing in the underinvestment companies.

https://far.ui.ac.ir/article_22531_950cd697ab4993e80fbf1df67508866e.pdf