The Impact of Earnings Quality and Income Smoothing on the Performance of Companies Listed in Tehran Stock Exchange PDF Download
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Author: Rezvan Hejazi
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This study investigated the effects of income smoothing and earnings quality on evaluating the performance of companies listed on the Tehran Stock Exchange. To do this research, we studied 96 companies among those listed within the years from 1999 to 2003. The data related to the performance mean of companies during the five-year period were aggregately and yearly studied, collected, and tested. The results of the study indicated that their performance is not influenced by income smoothing or earnings quality. In other words, no significant difference was found between the performance mean of smoother and no smoother companies and between those having high earnings quality and those having low earnings quality.
Author: Rezvan Hejazi
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This study investigated the effects of income smoothing and earnings quality on evaluating the performance of companies listed on the Tehran Stock Exchange. To do this research, we studied 96 companies among those listed within the years from 1999 to 2003. The data related to the performance mean of companies during the five-year period were aggregately and yearly studied, collected, and tested. The results of the study indicated that their performance is not influenced by income smoothing or earnings quality. In other words, no significant difference was found between the performance mean of smoother and no smoother companies and between those having high earnings quality and those having low earnings quality.
Author: Hamid Jamshidi
Publisher:
ISBN:
Category :
Languages : en
Pages : 16
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Book Description
The results of several experimental studies, the notion that the most important source of income deemed to decision makers rely more profit than any other criteria, has been proved, however, it should be noted that as the main source of income, it may not reflect the actual performance of companies and their management, because of the inherent flexibility of accounting standards, the interpretation and application of accounting methods in many cases, the judgments and actions of managers, therefore, the quantity of interest should be given to quality. The main purpose of research, quality of accruals and free cash flows, and that when companies have excess cash how is the quality of accruals? In this study, to assess the quality and relevance of accruals and free cash flows are attempting to assess the impact of listed companies from 2008 to 2011 in the Tehran Stock Exchange. Correlation test was used for data analysis spss software. Survey results indicate that there is a significant relationship between the quality of accruals and free cash flows. The results of this study suggested that the directors must have regard to the flow of economic benefits to the financial reporting within the company and the optimal use of resources.
Author: Hossein Eghbali
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
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Book Description
The present study was conducted to provide evidence to clarify the relationship between earnings quality and stock liquidity as well as assess the impact of earnings quality on stock liquidity. In this study, 96 companies listed in Tehran Stock Exchange during the 5-year period of 2011-201 as statistical population were surveyed. The independent variable in this study is earnings quality, which is measured by two indices (accruals quality and earnings smoothing). Stock Liquidity Measurement Two liquidity variables that are dependent variables are used: liquid float percentage, number of trading days, and control variable. Combined regression model and data were used to test the hypotheses. The results of sub tests showed that the accruals quality was inversely and significantly correlated with the percentage of free float stocks and the number of trading days; however, the results showed that profit smoothing was inversely and significantly correlated. It has a number of trading days, unless sufficient evidence is found to show a significant relationship between earnings smoothing and the percentage of free float stocks.
Author: Mohamed Samy Eldeeb
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
The purpose of the paper is to measure impact of three determinants on the firm performance using the earnings quality as an intermediary variable. The three determinants measured in this research are firm specific return volatility, earnings management, and the corporate governance. The research is applied in the Egyptian stock exchange market, using the constituents of its most active index that is the EGX30 during the time frame 2010-2017. The data have been analyzed by using statistical techniques, like the Jarque-Bera Test, Pearson correlation, and structure equation modeling. The results of the statistical analysis approved the research hypotheses by proving the association among firms' specific return volatility, earnings management, corporate governance, on firms' stock performance in the Egyptian stock exchange market, using the earning quality as an intermediary variable.
Author: Domitilla Magni
Publisher: Springer
ISBN: 3030212866
Category : Business & Economics
Languages : en
Pages : 250
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Book Description
In a first approximation, profit may seem like a simple and intuitive concept, but the definition is not limited to a single conceptual category. Analysis of the definition and role of profit must be implemented with a study at the corporate level. This book discusses the phenomenon of profit smoothing, implemented by management, which aims to maintain a constant flow of profit over time. On an operational level, the phenomenon of profit smoothing analyses and determines the correlation existing between a shock to a variable at the corporate level and the relationship between this shock and profit. This book discusses the main reasons, at the strategic level, of the phenomenon of profit smoothing and summarizes this into three groups. Firstly, the functionality of this phenomenon for corporate management is to transmit to the external environment, and especially to external investors, a business reality devoid of crisis and imbalances. Secondly, this initial motivation engages basically the second. In fact, levelling the trend of profit from year to year, top management can reduce the risk perceived from the outsiders and as from the company’s insiders. Thirdly, this justification is related to the stability of the flow of dividends. Profit smoothing places great emphasis on the phenomenon of dividends. It should be note how in fact the profit smoothing is used to keep the expectations of shareholders profit from one period to another. This book is focused on the profit smoothing and, in particular, how this phenomenon is established in developing-economies like the Chinese one, and will be of interest to academics, researchers, and students of corporate finance.
Author: Enas Abdullah Hassan
Publisher:
ISBN:
Category :
Languages : en
Pages : 362
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Book Description
This thesis examines the association between stock exchange monitoring and both firm performance and the quality of reported earnings for publicly listed firms from 16 economies across the Middle East and North Africa region (MENA). Agency theory suggests that efficient monitoring mechanisms have an important role to play in enhancing operating performance and the quality of reported earnings. Like other external mechanisms (i.e. takeovers, analysts following, banks, and institutional ownership), stock exchanges, as external monitors, perform monitoring activities that increase shareholders' ability to evaluate managerial performance, and put in place effective managerial incentive schemes that are designed to motivate managers to act in the best interests of the shareholders, improve firm performance and enhance the quality of reported earnings. This suggests that the significant monitoring role of stock exchanges enhances market efficiency. Thus, it builds upon the association between stock exchanges monitoring and efficiency; as stock exchange monitoring improves, stock exchange efficiency increases. Using 15,295 (firm performance model) and 8,383 (earnings quality model) firm-year observations between 2001 and 2010 indicate that stock exchange efficiency is positively associated with firm performance, and negatively associated with the absolute value of abnormal accruals (a proxy of earnings quality). Additional tests comparing the results of more efficient exchanges with less efficient exchanges suggests that firms listed on more efficient stock exchanges have better performance and higher earnings quality (lower accruals) than their counterparts listed on less efficient stock exchanges. Additional analyses is performed to examine whether the association suggested by the main results continue to be evident in the presence of other factors shown in prior research to impact on firm performance or earnings quality (i.e. investor protection, legal origin, internal mechanisms, regional attributes, and the instability of economic and political events). Overall, empirical evidence supports the expectations, implying that the association between stock exchange efficiency and firm performance becomes stronger in countries with greater investor protection, a common law tradition, and high income levels. In contrast, the association between stock exchange efficiency and performance appears not to be influenced by the strength of internal governance and whether the firm operates in the oil sector. With regard to earnings quality, however, the results indicate that the association between stock exchange efficiency as an external monitoring mechanism and earnings quality is not affected by other factors. Fundamentally, the results of this thesis are consistent with the extant literature that suggests associations between monitoring mechanisms in general, external mechanisms in particular and both firm performance and earnings quality. This indicates that as stock exchange monitoring efficiency increases, firm performance and earnings quality improves. This thesis contributes to the extant literature on the significant role of stock exchange monitoring. Examining stock exchange monitoring adds another dimension to stock exchange efficiency. Further, it expands our understanding of the effectiveness of stock exchange monitoring role as an external mechanism in mitigating agency problems leading to improved firm performance and earnings quality.
Author: Khosro Moradi Shahdadi
Publisher:
ISBN:
Category :
Languages : en
Pages : 18
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Book Description
Risk management has always been one of the major problems in the way of achieving a high value added. Financial managers are trying to control risk management policies and senior managers assist the company in achieving economic value added. In this study we aimed to assess the risks on the economic performance of companies listed - 96 companies on The Tehran Stock Exchange during the period 2009 to 2014 extracted using E views software and multiple regression tested researchers. The results show that risk management is an impact on individual performance indicators associated with this inverse relationship between risk management and return on assets and other components of the measured correlation is significant.
Author: Joshua Ronen
Publisher: Springer Science & Business Media
ISBN: 0387257713
Category : Business & Economics
Languages : en
Pages : 587
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Book Description
This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
Author: Reza Tehrani
Publisher:
ISBN:
Category :
Languages : en
Pages : 12
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Book Description
This paper tried to analyze the performance of the investment companies listed in Tehran Stock Exchange that had active portfolio management from 2006 to 2010 by Sharp, Treynor, and Sortino ratios. For more profound study of their performances, this research used some of the measures, including turnover, liquidity, size and diversification of portfolio. After gathering needed test data and relevant statistical tests as Kolmogorov-Smirnov and Shapiro-Wilk, the results showed the distribution of data was not normal. Therefore, the hypothesis was tested by nonparametric tests. The results of the first hypothesis about the three mentioned above ratios and with Freidman and Wilcoxen tests showed the companies had better controls on systematic risk than other components. The result of the second hypothesis by using combined Anova and Multiple Anova showed portfolio turnover in the companies had positive and significant affect in the companies performances than other measures. It is possible for anyone to be able to find a company that has a high level of portfolio turnover and a high level of performance than other companies while it has a lower level of other measures.
Author: Abdalmuttaleb M. A. Musleh Al-Sartawi
Publisher: Springer Nature
ISBN: 303156586X
Category :
Languages : en
Pages : 1360
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Book Description
