Search

ObjectiveThe higher the level of corruption in a society, the greater the number of justifications for immoral actions and behaviors. Therefore, companies that operate in highly corrupted environments face a weaker financial reporting system. The current research aims to explain various types of financial corruption and investigate their relationship with financial misstatements. Based on the theoretical foundations, three dimensions of administrative-operational corruption, administrative corruption, and political corruption were identified, and their components and indicators were explained.MethodsThe research employed a survey method with a cross-sectional design. The statistical population of the research included faculty members, financial managers, and members of the public accountant community. The sample size comprised 193 individuals, and the data were collected using a researcher-designed questionnaire. To check the validity of the questionnaire, content validity was used and to measure its reliability, Cronbach's alpha method was used. SPSS and AMOS software were used to test the hypotheses.ResultsThe results indicated a direct and significant relationship between the commercial and political aspects of corruption and financial misstatements. However, no significant relationship was found between the administrative-operational dimension and the financial misstatements. Moreover, the results of the regression analysis indicated the presence of positive and significant relationships between the dimensions of commercial and political corruption indicators and financial misstatements. In addition, the results of Structural Equation Modeling showed the acceptability of the collected data and the fit of the conceptual model of the research.ConclusionIt can be argued that corruption in hiring employees and managers alone is not a sufficient factor for the occurrence of corruption and, consequently, distortion in financial statements. However, corruption in the employment of managers and employees can lead to distortions in financial statements through embezzlement, receiving bribes, extortion, influencing company tenders, fraud by managers, and conflict of interests. Also, the results showed that connection with political parties and dependence on the government, connection with special customers and not dealing with new customers and ethnocentrism can lead to distortion in financial statements. This type of communication not only affects the financial resources of the companies but also motivates the managers to provide reports and financial statements under the opinions of the government. Furthermore, on one hand, bribery through management collusion with other people can lead to the concealment of facts and provide misleading financial statements by lengthening and complicating financial reports. In addition, management can distort financial statements through manipulation of financial reports and fraud for personal gain. On the other hand, purchasing goods, materials, and services needed by the company's employees from institutions or companies in which they or their relatives have interests can increase the cost of goods and services, thereby reducing profits. Embezzlement also leads to illegal changes in the company's assets and liabilities. These changes can have serious effects on the accuracy and reliability of financial reporting. Moreover, extortion by employees can lead to the removal of customers and suppliers of raw materials of the company, hence the financial statements are also subject to change. Based on the results of the structural equation model, the indicators used to measure the existing variables have appropriate factor loadings and can be used to measure the variables of administrative corruption, commercial corruption, political corruption, and distortion in financial statements. Also, the results indicate the impact of financial statements on commercial corruption and political corruption.

Comparability is among the key qualitative characteristics of accounting information, which can be affected by various factors like management motivation and earnings management. On the other hand, ownership structure is a corporate governance mechanism that can affect different aspects of an enterprise. The purpose of this study is to investigate the moderating effect of ownership structure on the relation between accounting comparability and earnings management. The population of this research includes all listed companies on Tehran Stock Exchange. The sample consists of 120 listed manufacturing firms from the period 2005 to 2016. This research uses panel data and multivariate regression methods (with controlled effects of years and industries) for data analysis and hypothesis testing. The empirical results from testing the first hypothesis imply a significant negative relation between comparability and earnings management. The findings from testing the second hypothesis show that any increase of institutional ownership may cushion the negative impact of earnings management on financial statement comparability. The results from testing the third hypothesis cannot find any significant impact of ownership concentration on the relation between financial statement comparability and earnings management.

Objective: Complex financial reporting and low readability increases auditor efforts to manage Audit Engagement Risk. Accordingly, considering the importance of financial reporting and readability, and its understandability for stakeholders, as well as the role of auditors in attestation of financial statements, the purpose of this study is to investigate the effect of annual report readabilityon the audit engagement risk measures. Methods: Based on the theoretical and empirical bases of the research, the audit report lag, audit fees, going concern opinion and auditor turnover were selected as the risk criteria for the audit engagement. The data was collected from the firms listed in the Tehran Stock Exchange during the period 1391 to 1397 and the research hypotheses were tested using panel data and multiple regression and logistic regression. Results: The results of the study indicate that in companies where the readability of financial reporting is lower, more audit fees, longer audit report lag and more likelihood of going concern opinion have received and more audits are more likely to change than the other companies. These results indicate that in firms with the less financial reporting readability, the auditors will face more audit risk and they need to work harder. Conclusion: The findings indicate that the readability of financial reporting provides information about the risk of auditing and affects the decisions of auditors. These findings are suitable for Linguistic development, improving the readability and disclosure in financial reporting for auditors, legislators and auditors for auditing and accounting standards setting. It also highlights the importance of qualitative information characteristics on the effectiveness of investors' analysis and decisions.

Objective: This study examines the impacts of management ability on financial statement comparability in 120 firms listed in the Tehran Stock Exchange, during 2005-2017. Method: In this study, the measure developed by Demerjian et al. (2012) was used to assess management ability, and the measure introduced by DeFranco et al. (2011) was used to specify accounting comparability. Panel data and multivariate regression models were taken to test the study hypothesis and analyze the results. Also, two alternative proxies for financial statement comparability were specified to re-test the hypothesis. Result: Findings from the above tests verified the findings of the study showing that the management ability has positively significant impact on financial statement comparability. Conclusion: This study suggests that firms can improve their financial statement comparability by employing higher quality managers.

Introduction: Theory of constraints is a managerial view which aims at increasing the system efficiency by identifying constraint processes. Present study aimed to apply the theory of constraint in scheduling system of a healthcare facility in order to increase efficiency and decrease patient wait times. Methods: The present research was a descriptive-analytical study through using cross-sectional method on 130 patients of a cancer treatment center. To simulate the patient flow, a discreet event simulation model was employed. The required data for simulating the patient flow were acquired using a questionnaire from patients and direct observation. After simulating the model in Simul8 software, different scenarios were developed and their effects were tested on patient wait times and system output. Results: The results from the simulation of different scenarios showed that using the third scenario, which was based on the theory of constraints principles, could balance the trade-off between average wait times and average system output. In comparison to output maximization scenario, only by a 4.36 percent decrease in average daily patient output, drum buffer rope (DBR) scenario improved average waiting times by 41.39 percent. On the other hand, relative to minimizing the wait time scenario, DBR scenario increased the average daily patient output by 29.97 percent, while increased the average wait times by 11.66 percent. Conclusion: Findings showed that employing the concepts of theory of constraints in healthcare can be significantly effective in managing the bottlenecks, reducing patient wait times, and improving system efficiency.

The present study investigates the relationship between governmental affiliation and firm`s systematic risk. In this study, data have been gathered from 76 listed companies in Tehran Stock Exchange from 2005 to 2015 and the research hypothesis has been examined by utilizing the regression coefficient analysis. The results indicate that there is a direct and significant correlation between governmental affiliation and systematic risk. In other words, companies which depend on government may encounter political risk and it can be one of the effective factors on the systematic risk. According to Levine (2005), governmental managers affect the firm`s risk by political decorum. Therefore, governmental affiliation can be used as a significant variable in firm`s risk.

This study examines the relation between accounting conservatism and liquidity management. The sample consists of 76 firms listed in TSE in the period from 2005 to 2012. To test the hypothesis, regression coefficient analysis has been used. First, accounting conservatism has been measured by Gyvly and Hime model and then to measure the effects of accounting conservatism on cash and tendency to saving is measured by Kahal Batz et.al (2009) and Almeida et.al (2004) models respectively. Empirical evidence suggests that there is a significant relationship between conservatism and management of liquidity. Also between accounting conservatism and thetendency to saving there is a significant negative relation. The research results show of the more conservatism, the less cash available for firms.

This research examines the relationship between earning sustainability and value relevance of accounting information. In this study, data has been collected from 76 firms listed in the Tehran Stock Exchange during 2005-2013. The research hypothesis was tested by utilizing the regression coefficient analysis. The results showed a significant and positive relation between earning sustainability and value relevance of accounting information. In other words, the reproducibility of the earning increases value relevance of accounting information. In general unsustainable earning will decrease the value relevance because shareholders cannot rely on earning. From the other side, increase earning sustainability can be increase the predictive power of shareholders. Thus it can increase value relevance of accounting information. The results also show that the significant and positive relation between Changes EPS and return of stock.

This research explores the relationship between management earnings forecasts and firm’s non-systematic risk. This study has collected data from 76 firms listed on Tehran Stock Exchange from 2005 to 2012 and has tested the research hypotheses by utilizing the regression coefficient analysis. Many of the changes in risks of the corporates in the capital markets are influenced by various information that corporates are offering to the market. Some of these sources of information are estimations and forecasts. So verification of these predictions, and also reaction of investors to the issuance of these forecasts will be studied. Considering the reaction towards corporate's risks as a dependent variable to the presented earnings forecasts by managers, the research results indicate that there is a significant and negative relationship between the accuracy and frequency of earnings forecasts.

ABSTRACT: in This paper, examine accrual quality of restating firms during the period 2001 – 2010.The sample include 70 restatement event for of listed companies in TSE and we compare accrual quality from before and after the restatement year. This firms have only once restatement in two years pre and post restatement year. Our measure for accrual quality is based on the Dechow and Dichev (2002) model. We find that the accrual quality increases significantly from the period of misstatement to the period following the restatement year. We also examine factors of associated with changes in accrual quality that is determinant of earnings quality including corporation governance ,Firm characteristics and audit quality. The results show that changes in size, change in sales, change in cash flows from operations, Leverage ratio, the ratio of market value to book value, the percentage ownership of institutional investors and CEO tenure are significant relationship with accrual quality.