Financial monetary economy
hashem manzarzadeh tamam; Mohammad Reza Abbaszadeh; reza hesarzadeh; Seyed Saeed Malek Sadati
Abstract
With the tightening of sanctions and the unilateral withdrawal of the United States from the JCPOA in 2017, the maximum pressure on Iran caused great damage to Iran's economy. It is predicted that in the new period after the JCPOA, these sanctions will have many destructive effects on the performance ...
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With the tightening of sanctions and the unilateral withdrawal of the United States from the JCPOA in 2017, the maximum pressure on Iran caused great damage to Iran's economy. It is predicted that in the new period after the JCPOA, these sanctions will have many destructive effects on the performance indicators of selected industries of the Tehran Stock Exchange. Based on this, the purpose of this research is to investigate the effect of some macroeconomic variables. During the sanctions periods (before and after the JCPOA), it is based on the performance indicators of the companies admitted to the Tehran Stock Exchange (selected industries: automobile, chemical, medicine and steel).In terms of the purpose of this research, it is considered as applied research, and the current research is of the post-event type, that is, it is based on the analysis of past information (financial statements of companies). Also, the method of this research is correlational in nature and content. The time period of the research includes 11 consecutive years from 1389 to 1399.The results of the research showed that sanctions had a moderating role on the relationship between exchange rate fluctuations and added value of companies. Sanctions in all selected industries, except the automobile industry, have had a moderating role on the relationship between the volume of foreign investment and the investment activities of companies. Sanctions in all selected industries, except the automobile industry, have had a moderating role on the relationship between the price index of products and the profitability of companies. Sanctions in the whole sample and in the chemical industry, on the relationship between the import of intermediate goods and capital and operational activities of companies have a moderating role.Keywords: sanctions, exchange rate fluctuations, volume of foreign investment, performance indicators of companies.
mahdi salehi; mohammad reza abbas zadeh; mostafa zangiabadi; elahe khodamoradi
Abstract
Introduction
As the largest amount of capital around the world is traded through stock markets, and the national economy is heavily influenced by these markets performance, the increase in listed company’s investment volume affects the development and improvement of company performance and so, it ...
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Introduction
As the largest amount of capital around the world is traded through stock markets, and the national economy is heavily influenced by these markets performance, the increase in listed company’s investment volume affects the development and improvement of company performance and so, it will attract more capital towards the capital market and improve the economic situation. On the other hand, given the important role of foreign direct investment (the index of financial liberalization) in the economy of each country, most countries try to attract this capital. In fact, the global market for attracting these funds is highly competitive. This competition is particularly high among developing countries due to the need for rapid access to development and a lack of funds. Such countries seek to attract different types of capital, and they make various arrangements to attract these types of funds.
Theoretical framework
The liberalization of capital flows drives capital flows from high-capital to low-capital economies. These capital flows should complete domestic savings in low-capitalization countries and lead to increased investment in these countries. Capital flows can improve technology. There are indirect ways through which financial liberalization can improve the economic growth of countries. Financial liberalization, with transferring capital between countries, can help improve investment by increasing financial sector development. According to existing theories about the effect of financial liberalization on consumption, since consumers are often risk averse, they use financial markets to reduce investment risk, which will increase the likelihood of investing in companies accepted in financial markets. Therefore, the study of macroeconomic factors facilitating the investment process in listed companies at the stock exchange will be an issue.
Methodology
In this study, the impact of financial liberalization on the investment rate of listed companies on the Tehran Stock Exchange and Iran Over the Counter Market was evaluated and due to the lack of consensus among previous researches on how to measure the concept of financial liberalization, In this study, three measures such as potential financial liberalization (Heritage index), financial liberalization index (Reverse of difference between US real interest rate and Iranian real interest rate) and interest rate control (interest rate changes) were used to measure financial liberalization and its effect on the amount of corporate investment (net amount of operational activity investment class in the audited annual cash flow statement disclosed in each company) in the period 2002-2015 in companies listed at Stock Exchange using the structural equation approach, was measured.
Results & Discussion
The results indicate a significant positive relationship between financial liberalization and investment. In other words, with the liberalization of finance and the facilitation of foreign capital inflows, the reduction of capital costs and financing, companies have more resources to develop and complete their own operational projects and face easier conditions to Access these resources. Therefore, the company's management investing interest will increase and use cheaper resources than before liberalization. The results of this study are consistent with the findings of the study: Henry (2000); Hermes et al., (2005); Forbes & Warnock (2012) and Jadiyappa et al., (2016) are consistent.The results also show that the direct relationship between the interest rate changes and the financial liberalization index (Reverse of difference between US real interest rate and Iranian real interest rate) with the investment rate is negative.
Conclusions & Suggestions
The results also show that the direct relationship between the interest rate changes and the financial liberalization index (Reverse of difference between US real interest rate and Iranian real interest rate) with the investment rate is negative. In other words, there is a trade-off between interest rate and private equity investment, Therefore, the reduction of interest rate increases investment, so, financial sector policies that affect the long-term interest rate as well as the growth and development of money markets improve the productivity of the capitalized. increase savings and increase the present value of the profitability of investment projects. Therefore, it is suggested that in future research, in addition to those factors mentioned in the present study, the factors affecting financial liberalization will be identified in order to formulate the final model of financial liberalization measurement.
Mostafa Ghannad; Mohammad Reza Abbaszadeh; Behzad Kardan
Abstract
Related party transaction is a phenomenon that while they attribute recent financial scandals are known to be related to it,it can also lead to the loss of shareholders’ wealth and managers start earnings management to cover transfer of wealth. Therefore, the aim of this study is to investigate the ...
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Related party transaction is a phenomenon that while they attribute recent financial scandals are known to be related to it,it can also lead to the loss of shareholders’ wealth and managers start earnings management to cover transfer of wealth. Therefore, the aim of this study is to investigate the relationship between related party transactions and earnings management in listed companies in Tehran Stock Exchange. To achieve this goal, in addition to the examination of the relationship between earnings management and related party transactions in all of the companies, this relationship has also been tested for the group of companies with an efficient and opportunistic earnings management behavior. In order to test the research hypotheses, financial data of 164 companies during 2007-2015 were used, and data analysis was done using multivariate regression model and panel data. The results showed a positive and significant relationship between earnings management and related party transactions. In addition, a significant negative relationship was seen between related party transactions and opportunistic earnings management, which show the efficiency of the related party transactions. In addition, the findings showed a positive and significant relationship between related party transactions and efficient earnings management, which approved the efficiency of related party transactions in Tehran Stock Exchange.
Results andDiscussion
Three hypotheses were proposed for this research, and all the three hypotheses fit the same model. In all three models, the dependent variable is discretionary accruals and the independent variable is the related party transaction. The difference between the three models is that, for the entire sample group companies, the group of companies with the opportunistic behavior of the earnings management and the group of companies that have an effective earnings management behavior are fitted.
Conclusions
The purpose of this study was to discover the relationship between Related Party Transactions with affiliated entities and earnings management in a group of opportunistic and efficient companies in order to create managerial motives for dealing with affiliates to achieve specific goals. In this study, using financial information of listed companies in Tehran Stock Exchange, there was a positive and significant relationship between Related Party Transactions with affiliated entities and Earnings Management.
Moreover, this study examines the relationship between Related Party Transactions with affiliated entities and Earnings Management in the group of companies with the behavior of effective and opportunistic Earnings Management. The results indicate a negative and significant relationship between these two variables in the group of companies with opportunistic behavior of earnings management. In addition, the results indicate a positive and significant relationship between Related Party Transactions with affiliated entities and Earnings Management in companies with good Earnings Management behavior. Therefore, these results are based on the strengthening of the theory of
Abdorreza Asadi; Mohammadreza Abbaszadeh
Abstract
This paper investigates the effect of firms’ characteristics on leverage ratios
of affiliated and unaffiliated firms in Tehran Stock Exchange (TSE). In this
regard, financial data have been collected from 200 non-financial listed
companies over the five-year period. A regression model with dummy
variable ...
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This paper investigates the effect of firms’ characteristics on leverage ratios
of affiliated and unaffiliated firms in Tehran Stock Exchange (TSE). In this
regard, financial data have been collected from 200 non-financial listed
companies over the five-year period. A regression model with dummy
variable and t-statistic has been used to test the six hypotheses.
The results show a significant negative effect of profitability on leverage
ratios. The effect of growth opportunity on leverage ratios is significantly
positive and tangibility has a significant negative effect on short-term debt
and total debt ratios but for long-term the effect of debt ratio is positive. The
effect of firm size on leverage ratios is insignificant. Out findings also
indicate that the government ownership has a significant effect on the
relationship between firms’ characteristics and capital structure and the
pecking order theory is strongly supported as a pertinent theory to the capital
structure of Iranian companies.
Mohmmad Reza Abbaszadeh; Seyed Mahdi Pourhoseini Hesar; Neda Jafari Nasab
Abstract
Earnings Announcements is an important and cost-effective source of information for investors and the other users. It has Information Content. On one hand, timeliness of annual earnings announcements adds to the relevance of earnings reporting. On the other hand, Timely earnings announcements reduce ...
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Earnings Announcements is an important and cost-effective source of information for investors and the other users. It has Information Content. On one hand, timeliness of annual earnings announcements adds to the relevance of earnings reporting. On the other hand, Timely earnings announcements reduce information asymmetry between the users. The objective of this study is to present evidence on the timeliness of annual earnings announcements in Listed Firms in Tehran Stock Exchange.
Our sample consists of 170 Tehran stock exchange firms and the sample period is during 2006-2010. In this study, multiple regression is used for testing the hypotheses. The possible determinants in explaining earnings reporting timeliness are divided in three categories which are the demand for earnings information, supply constraints and management opportunism and are examined.
The findings of this study portray the effect of business combination, firm complexity, financial distress, good or bad news and audit opinion on timeliness of annual earnings announcements.
