Iranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401Modifying the Black-Scholes model to valuate preemption right159382ENGiorgioConsigliUniversity of Bergamo, ItalyF.Rahnamay RoodposhtiIslamic Azad University, TehranAminBabaei FalahIslamic Azad University, TehranJournal Article20150927In this paper, we try and valuate preemption rights by modifying the Black-Scholes model, which is widely used to valuate options and other derivatives. Here we first present the basics of the Black-Scholes model and then we discus modification of the model to be fit for preemption right valuation. At the end, we valuate four of the preemptive rights using the proposed modelhttp://www.ijfma.ir/article_9382_d9a5cf487c8317dba2cc8fafcf8a18a8.pdfIranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401The role of investors’ objective financial knowledge on the assessment of risk disclosures in mix mutual funds advertisements in Iran (The evidence of mutual funds in Iran)7239383ENF.Rahnamay RoodposhtiProfessor of Finance & Accounting Department, Science and Research Branch, Islamic Azad University, Tehran, Iran,HosseinEslami Mofid AbadiPhD. Student in Financial Management, Accounting Department, Science and Research Branch,Islamic Azad University, Tehran, Iran,0000-0003-4067-6622FereidoonZareiePhD. Student in Financial Management, Accounting Department, Science and Research Branch,Islamic Azad University, Tehran, Iran, E-mail:Journal Article20151018Financial literacy of investors reduces uncertainty on future decisions and increases predictability of investment policies in financial markets. Thus, the lack of clear information on financial markets is a determining factor in the arrival of domestic and foreign capitals and their quick exit in case of crisis. The lack of transparency and basic knowledge on decisions and failure to provide regular information in order to meet the reasonable expectations force the private firms to increase the flexibility of asset values and investments by further investigation of their expectations and expect higher risk for their investments. Therefore, the main objective of this study was to examine the role of financial literacy of investors in evaluating the risk disclosure of promotion mix by mutual investment funds in Iran. The population of this study included 120 mutual investment funds in Iran; the sample size (384) was calculated by the Krejcie -Morgan table. Data was collected by field studies using interviews and questionnaires, including financial literacy of investors and risk disclosure of promotion mix by investment funds, as well as archival studies. Construct validity was used to determine the validity of the questionnaires, which were validated. Cronbach's alpha was used to determine reliability. Finally, data was analyzed by SPSS software. The results show that financial literacy of investors influences the risk disclosure of promotion mix by mutual funds in Iran. The financial literacy of investors reduces uncertainty of future decisions and increases predictability of investment policies in financial markets. Moreover, financial literacy of investors leads to predictable risk and return among those who are interested in investment in Iranian mutual fundshttp://www.ijfma.ir/article_9383_8e7991af8afa942dc572950e01177da5.pdfIranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401Shareholder Wealth Effects of MANAGEMENT Regulatory COMPLIANCE25409384ENPankaj K.JainThe University of Memphis
George Johnson Professor of Finance and Chair of Finance department
Fogelman College of Business and Economics
300 Fogelman College Admin. Building
Memphis, TN 38152-3120ZabihollahRezaeeThe University of Memphis
Thompson-Hill Chair of Excellence & Professor of Accountancy
Fogelman College of Business and Economics
300 Fogelman College Admin. Building
Memphis, TN 38152-3120Journal Article20150816<strong>Purpose: </strong>This paper addresses whether and how the Sarbanes-Oxley Act of 2002(SOX) affects shareholder wealth (firm value) by focusing on the trade-off between improved corporate governance leading to a lower cost of capital and increased managerial compliance costs of regulations.
<strong>Design/Methodology:</strong> We use an analytical model of solving the management utility maximization function and the change in stock prices in response to SOX regulations. We tested our analytical model by empirically investigating financial restatements in the pre and post-SOX.
<strong>Findings:</strong> We conclude that all public companies can benefit from regulatory reforms, but the net effects vary across firms depending on investors’ perception about a firm’s governance quality before regulatory reforms and the required managerial compliance costs. Our analytical model also generates new predictions about management compliance behavior, which we test empirically by investigating restatements of financial statements.
<strong>Contributions:</strong> The model has policy implications by addressing cost-benefit of initiatives taken to improve US capital markets’ global competitiveness and they impacts on managerial compliance behavior. Our results may be relevant to regulators and public companies in Iran as the government has promoted a series of deregulation and privatization initiatives.
<strong>Originality/Value:</strong> Our model attempts to reconcile mixed empirical results of related studies pertaining to the effects of SOX on stock prices.http://www.ijfma.ir/article_9384_bee8b2cc16ae69b1d21dfd4fa9dbf9ef.pdfIranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401Investigating the Relationship between Quality Costs and Quality in Pegah Khuzestan Dairy Industry41499385ENNargesSarlakAssistant professor, Faculty of Management, University of Qom. Address: Sisters’ Campus, Qom University, Qom-Isfahan old road, Qom, Iran.ZahraNasrollahiMSc. in Accounting.Journal Article20151003This research aims to study the relationship between the components of quality costs and quality in company. The relationship between the components of quality costs and quality in company has been studied separately for materials, manpower, machinery, and whole of company. In this study, traditional method was used to collect quality costs and PAF model was used to determine the components of quality costs. Research hypotheses were examined based on a statistical sample for a production company with ISO for a three-year period from 2011 to 2013 using correlation coefficient model. Results obtained from the study shows that there is a significant diverse relationship between sum of prevention and appraisal costs, and material failure, human resources and overall costs. But there is not a significant inverse relationship for machinery costs. As well, there exists a direct and significant relationship between sum of prevention and appraisal costs, and the quality level of manufactured product, and an inverse and significant relationship between failure costs and the quality level of manufactured product.http://www.ijfma.ir/article_9385_29a9f8c8460e5e2be4edde557fd83712.pdfIranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401The Relationship between Earning Management and Capital Structure51569386ENHashemNikoomaramProfessor of Finance & Accounting Islamic Azad University, Science & Research Branch
Tehran, IranFarhadArabahmadiFaculty Member of Accounting, Shahrood University of Technology
Shahrood, IranAliasgharArabahmadiPhD Student of Accounting, Islamic Azad University, Science & Research Branch
Tehran, Iran
Corresponding AuthorJournal Article20150619This paper analyzes the relationship between capital structure and earning management. For analysing we used 119 non-financial companies that listed in Tehran Stock Exchange from 2000 to 2008. The researchers will focus on comparing the Jones Model and the Modified Jones Model, which are the two most frequently used model in empirical analysis nowadays. Earnings management is a kind of management which uses accounting techniques to meet the executives. Researchers in this area found many approaches to detect the earnings management; within these approaches are the discretionary accrual models which include the modified. Our findings suggested a positive relationship between debt ratio and discretionary accruals is (0.000). Also there is a negative association between return on assets (ROA) and debt ratio. Finally return on equity and total assets related positively with debt ratio.
<strong> </strong>http://www.ijfma.ir/article_9386_859bf1416b8b8761c5d588dee78dc65f.pdfIranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401Evidence on Asset Sales and Income Management: Case of Iran57659387ENSaharSepasiFaculty of Management & Economics
Tarbiat Modares University, Tehran, IranJournal Article20150917This study empirically examines whether managers manipulate reported income through the timing of sales of long-lived assets and investments. Several empirical implications of the income-smoothing and debt-equity hypothesis in the context of asset sales were tested. The findings are consistent with the timing of asset sales by managers so that the recognized accounting income from these sales smoothes intertemporal income changes and mitigates accounting-based restrictions in debt contracts. In conformance with the income-smoothing hypothesis, the findings show that income from asset sales is significantly higher for firms that exhibit decreases in annual income than for firms experiencing increases. In conformance with the debt-equity hypothesis, the evidence indicates that income from asset sales of high debt-equity firms significantly exceeds that of low debt-equity firmshttp://www.ijfma.ir/article_9387_6f5216f8d89b086c18298e043bfe48ed.pdfIranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401Balance Scorecard Systems: Designing and implementing (A case study: Shiraz University)63699388ENRezaJameiAssistant Professor of Accounting, University of Kurdistan (UOK), Sanandaj, Iran.Journal Article20151020Different models with various approaches to strategic positioning have been employed to define it in various industries. As one of the powerful models, BSC analyses all aspect of organization evenly.
In this study BSC is used as an instrument to make Shiraz University more efficient in implementing strategic and performance or supporting their strategic plan. Therefore this study aims to design and implement BSC system in Iranian universities in order to improve their efficiencyhttp://www.ijfma.ir/article_9388_d58cc99982459ca8d73b89068f53e446.pdfIranian Financial Engineering Association(IFEA)International Journal of Finance & Managerial Accounting2588-43791120160401Management Accounting Education for the 21st Century Firms75779423ENAhmadNasseriUniversity of Sistan and BaluchestanHassanYazdifarUniversity of Salford, UKDavoodAskaranyUniversity of Auckland, New ZealandJournal Article20151001Management accounting has become a subject of hot debates over the last four decades and has undergone a major transformation. It is argued that traditional management accounting roles have either disappeared or been changed. The debate is based on the belief that roles of ‘Management Accountants’ require new forms of education and training, with more emphasis on the practicality of the subjects that are taught in higher education institutions to accounting students. Prevailing subjects, modes of study and delivery of teaching programmes may have to significantly change to make room for new areas, which are more required in the competitive market that the 21<sup>st</sup> century firms are experiencing these days. The argument in this paper is supported by the data collected from interviews with a sample of CIMA members working as senior financial directors in businesses, both service and manufacturing, in the UK, Australia and New Zealand.http://www.ijfma.ir/article_9423_6ba0bf4c0fe33816952cd589611c4dbc.pdf