Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Political Connection and Earnings Management Methods: Evidence from Tehran Stock Exchange 1 17 15968 EN Alireza Ghonji Feshki Ph.D. Student in Accounting, Damavand branch, Islamic Azad University, Damavand, Iran Mohammad Hamed Khanmohammadi Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran Shohreh Yazdani Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran Journal Article 2020 07 18 Governments have always affected the economic environment as a policy maker. On the other hand, the presence of political connection as representatives of governments in companies affects their administrative and decision - making methods.Firms and managers manage them under environmental conditions by applying different approaches to earning management in order to achieve their goals.The government representatives on the board of directors are affected by applying different methods due to political and economic conditions, and thus in this study the effect of political connection on earnings management practices in Tehran stock exchange (2004-2016) has been paid in 16 industry with 271 companies. The purpose of this study is application of correlation analysis. Multivariate regression has been used to test the hypotheses. The results indicate that in the course of the study, companies have managed earning management and at the same time using more than 70 % of companies using Accrual- earnings management method, there is a relationship between political connection and Real earnings management, and the change of the general level of prices and economic indicators affects the relationship. Also, Accrual- earnings management methods was independent of the political connection of companies and the effect of interaction of the general level of prices and macroeconomic indicators due to the establishment of different governments.

http://www.ijfma.ir/article_15968_fdc2397ee9d0dbbcfdc0ba1c0fe3442b.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Supply Chain Cost Estimation Model for Dashboard Management Design 19 31 15969 EN Gholamreza Shabani Khfari Doctoral student, Department of Accounting, Kashan Branch, Islamic Azad University, Kashan, Iran Iraj Noravesh Accounting Department of Tehran University, Tehran, Iran Hossin Panahian Department of Accounting, Kashan Branch, Islamic Azad University, Kashan, Iran 0000-0003-2030-0281 Journal Article 2020 07 18 Supply chain management helps partners in the chain to justify internal costs. The pursuit of cost information through the supply chain is very important for controlling costs, which helps to establish and optimize activities in institutions in the value chain. In this research, we have tried to review the literature on Supply Chain Costing in order to predict a model of management dashboard design for supply chain cost estimation, focusing on quantitative models and prediction. For this purpose, after reviewing the supply chain cost literature and examining the scope and purpose of the dashboard design, using the mathematical models and applying actual production and sales data in Tehran Province in the Zamzam Iran Company and Zamzam Tehran Company 22 data courses From March 2016 to December 2017, the subject of this study, the design of the Supply Chain Cost Chain (CHCDM) model and the use of specialized software to prepare reports in the field of business intelligence, predicted the cost estimation dashboard model Supply chain and analysis reports were sensitive. Findings of the research are the best way to predict the combination method and regression method.

http://www.ijfma.ir/article_15969_a0057a00b18bd48ac8c56bce68e483d7.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Credit Risk Predictive Ability of G-ZPP Model Versus V-ZPP Model 33 40 15970 EN Elahe Kamali PHD student in Finance, Central Tehran Branch, Islamic Azad university Mirfeiz Fallah Shams Department of Financial Management, Central Tehran Branch, Islamic Azad University, Farhad Hnifi Department of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran Journal Article 2020 07 18 Credit risk management is becoming more and more important in recent years. When a company deals with a financial problem, it may not be able to fulfill its financial obligations, which can cause direct and indirect financial losses to shareholders, creditors, investors and other people in the community. Advanced credit risk models that are based on market value include improving credit quality as well as reducing or decreasing credit ratings. In the current study, we investigate a new model called ZPP that was introduced in 2007. This model is one of the advanced models of credit risk and the standard deviation of the model is calculated the GARCH model. In this survey we test the accuracy of the ZPP model with GARCH and Simple Standard Deviation. In order to test the accuracy of the model, we have chosen two models: firms with financial problems and companies with financial health, and in each group, we estimated the probability of default by two models and then compared the probability of default with each other. Finally, we found the predictive ability of the G-ZPP model which was obtained by the GARCH model was better than the Variance-ZPP model.

http://www.ijfma.ir/article_15970_71f58dc2f5a3d2be62f3f85625ff0bda.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Cost Stickiness: Value Creating or Value Destroying (The Iranian Experience) 41 53 15971 EN Mahboobe Mortazavi Islamic Azad University, Sciences and Research Branch, Tehran, Iran Hashem Nikoomaram Accounting, Management & Economics, Islamic Azad University, Science & Research branch, Tehran, Iran Bahman Banimahd Associate Professor of Accounting, Islamic Azad University, Karaj Branch, Karaj, Iran 0000-0001-9554-4091 Journal Article 2020 07 18 This research reviews and tests two contradicting notions in cost stickiness literature by empirical recognition of the consequences of cost stickiness. Cost stickiness is consistent with both rational resource planning and opportunistic incentives of manager to increase personal benefits arising from status and power. Although both mechanisms involve asymmetric retention of slack, some of the implications are starkly different: the former, according to the optimal resource adjustment view, represents that retaining slack resources during sale decrease are optimal responses to future expectations and contributes to firm value, whereas the latter, according to agency theory-based view, reflects wasteful overspending which can be value-destroying. This research examined a sample of 124 companies listed in Tehran Stock Exchange over the period of 2002 to 2018. The results show that SG&A cost stickiness is generally a signal of self-interested managers who may grow a firm beyond its optimal size opportunistically while COGS stickiness can be a signal of far-sighted management in the interest of the firm. The results also indicate that investors may not fully recognize the managerial expectations underlying the resource adjustment decisions and mostly perceives SG&A cost stickiness and COGS stickiness as a signal of self-interested managers who decide to maximize their personal utility rather than the interests of the firm’s shareholders.

http://www.ijfma.ir/article_15971_02f6c78de6cfde279480ef7b5cccdb17.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 The Impact of Social Responsibility and Social Intelligence on Auditor's Professional Judgment with the Role of Mediating a Philosophical Mindset 55 65 15972 EN Saeed Mashayekhi Fard Department of Accounting, Science and Research Branch, Islamic Azad University, Tehran, Iran Azita Jahanshad central Tehran Branch, Islamic Azad University, Tehran, Iran Zahra Poorzamani central Tehran Branch, Islamic Azad University, Tehran, Iran Journal Article 2020 07 18 Auditing is a branch of the social sciences and social components that affect the attitude of the auditor and the type of mental attitude of individuals that affects their professional judgment. The purpose of this study was to investigate the role of mediating the philosophical mindset of auditors on the effects of social responsibility and social intelligence on professional judgment. The statistical population consists of 1585 individuals, whose working in the Iranian Auditing Organization and auditing firms as a member of the Iranian Association of Certified Public Accountants. In 2018, 196 auditors were selected by using a cluster random sampling method. This research is an applied research method. The method of collecting descriptive information is a survey type of qualitative research and the tools used in the research are standard questionnaires. In this research, structural equation model with partial least squares approach (PLS) has been used to confirm the relationship between variables. Also the assumption of the mediating role of the variable of philosophical mindset was examined using the Sobel test. The results indicate that social responsibility has a positive and significant effect on professional judgment, and philosophical mindset has a significant and positive mediator role in influencing social responsibility on professional judgment. Also, social intelligence has a significant and positive effect on professional judgment, and philosophical mindset plays a meaningful and positive mediator role in influencing social intelligence on professional judgments

http://www.ijfma.ir/article_15972_e71b01a76dd61177e2dbfa7345b8e6de.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Artificial Intelligence Approach Analyzing Management Ability Based on Accounting and Corporate Governance Criteria 67 83 15975 EN Seyed Mostafa Shahsahebi Ph.D. Student of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran. Roya - Darabi Associate Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran Mohsen Hamidian Assistant Professor, Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran. Journal Article 2020 07 19 The aim of this research is the analysis of management ability using accounting and corporate governance criteria and also artificial intelligence. The primary independent variables in this study include regulatory variables (characteristics of corporate governance and audit committee) and accounting variables (performance and risk criteria). We took advantage of Demirjian index to measure management ability. The empirical findings Of 178 companies listed in Tehran Stock Exchange from 2011 to 2017 indicate that using least angle regression approach, systematic risk variables, management alteration, ownership concentration, financial expertise of the audit committee members and stock returns have a higher power explaining management ability. Analyzing these results, we can say that economic, political and regulatory issues can further affect management ability to measure their performance. Also among other results obtained here we can mention that in management and accounting, to explain and predict continuous financial variables such as management ability, we can take advantage of Fourier online gradient descent approach that has high predictive power.

http://www.ijfma.ir/article_15975_d2883cc21428e523fff0e72f8c0fc7b6.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Noise Trading Approach of Capital Asset Pricing at Tehran Stock Exchange 85 94 15976 EN Solmaz Salami PhD Candidate of Financial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran Abdolmajid Abdolbaghi Ataabadi Assistant Professor of Finance, Department of Management, Faculty of Industrial Engineering & Management, Shahrood University of Technology 0000-0002-1403-7547 Rohollah Farhadi Assistant professor of Finance. Department of Management, Central Tehran branch, Islamic Azad University, Tehran, Iran Journal Article 2020 07 19 Noise traders as one of the key elements of the market play a significant role in determining the market volatilities, returns, and stock market mispricing. Hence, this study attempts to scrutinize the role of noise trading in capital asset pricing. Therefore, by using daily data, samples including 14105 data of 200 companies listed on stock exchange were selected and noise trading index was estimated based on Feng et al (2014). Then, using the panel method, monthly noise level of stock exchange was evaluated and the effect of noise factor on risk premium was modelled. Findings indicated that an increase in the noise level in the stock trading leads to a decrease in risk premium, however, stock fluctuations increase significantly. Moreover, the noise factor has a negative and significant effect on risk premiums. Also, market risk premium and company size have a significant positive effect on risk premium.

http://www.ijfma.ir/article_15976_9e5164986e9d24fee7a16513e29c4088.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Tax Avoidance and Institutional Ownership: Active vs. Passive Ownership 95 106 15977 EN Hoda Eskandar Assistant Professor of Accounting, Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran Poya Ebrahimi BS student in Accounting,Faculty of Economics and Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran. Journal Article 2020 07 19 Agrawal. K. K. (2007). “corporate tax planning”. 1. 6/E: 3-11. 2) Aligholi, Mansooreh., Jalilian, Addi (2012). Investigating the Relationship between Long-Term / Temporary Institutional Investors and Effective Earnings Management. Knowledge of accounting and managerial Accounting. 1 (4): 27-42. 3) Almazan, A., Hartzell, J., Starks, L.T., 2005. Active institutional shareholders and cost of monitoring: Evidence from managerial compensation. Working paper, University of Texas at Austin. 4) Annuar, Hairul Azlan , Salihu Ibrahim Aramide and Obid iti Normala Sheikh (2014). Corporate ownership, governance and tax avoidance: An interactive effects. Procedia - Social and Behavioral Sciences, 164: 150 – 160 . 5) Berle, A.A., Jr. and Means, G.C. (1932), The Modern Corporation and Private Property, Macmillan, New York, NY. 6) Bradshow, M, Liao, G and Ma, M. (2016). Ownership structure and tax avoidance: evidence from agency costs of ownership in china. Working paper. 7) Bushee, B. J(1998). “The Influence of Institutional Investors on Myopic R&D Investment Behavior“, Accounting Review, 73: 305-334.Chen, K.-P., and C. Chu. 2005. Internal control vs. external manipulation: A model of corporate income tax evasion. RAND Journal of Economics 36: 151–164. 9) Cheng, C. S. A., H. H. Huang, Y. Li, and J. Stanfield. 2012. The effect of hedge fund activism on corporate tax avoidance. Accounting Review 87(5), 1493–1526. 10) Cornett, Marcia Millon, Marcus, Alan, Tehranian, Hassan and Saunders, Anthony (2007). " The impact of institutional ownership on corporate operating performance", Journal of Banking & Finance ,31 (2007) 1771–1794. 11) Crocker, K., and J. Slemrod. 2005. Corporate tax evasion with agency costs. Journal of Public Economics 89: 1593–1610. 12) Dyreng, S., M. Hanlon, and E. Maydew (2010), "The effects of executives on corporate tax avoidance", The Accounting Review, 85(4): 1163-1189. 13) Goh, Beng Wee, Lee, Jimmy, Chee Yeow, Lim and Shevlin, Terry. (2016). the Effect of Corporate Tax Avoidance on the Cost of Equity, The Accounting Review, 91(6): 1647–1670. 14) Hanlon, M, Heitzman , Sh (2010) , " A reviewof tax research", Journal of Accounting and Economics 50, 127-178. 15) Hasana, Iftekhar, Kim, Incheol Tengd, Haimeng and Wue Qiang. (2016). The Effect of Foreign Institutional Ownership on Corporate Tax Avoidance: International Evidence. Working paper. 16) Jam, Farhad. (2000). The Professional Behavior of Tax Advisers: Tax Avoidance and Tax Evasion "Auditor Journal, 6: 41-43. 17) Khani, Abdullah., Imani, Karim., and Mollai, Mahnam. (2013). Investigating the Relationship between Auditor’s Expertise in Industry and Tax Avoidance of Companies Listed in Tehran Stock Exchange". Auditing Knowledge, Vol 13, No 51: 43-68. 18) Khurana, I. K., Moser, W. J., 2013. Institutional shareholders’ investment horizons and tax avoidance. Journal of the American Taxation Association 35(1), 111–134. 19) Kholbadalov Utkir. (2012). cost of debt and institutional ownership: evidence from Malaysia. Revista Atlántica de Economía, 2 :1-36. 20) Khan Mozaffar, Srinivasan Suraj and Tan Liang . (2016). Institutional Ownership and Corporate Tax Avoidance: New Evidence .Electronic copy available at: http://ssrn.com/abstract=2779809 21) Kovermann, Jost and Velte, Patrick. (2019). The impact of corporate governance on corporate tax avoidance—A literature review. Journal of International Accounting, Auditing and Taxation, 36: 1-25. 22) Mehrani, Sasan, Moradi, Mohammad and Eskandar Hoda. (2017). Institutional Ownership Type and Earnings Quality: Evidence from Iran. Emerging Markets Finance & Trade, 1–20, 2016. ISSN: 1540-496X print/1558-0938 online. DOI: 10.1080/1540496X.2016.1145114 23) Navissi, Farshid. and Naiker, Vic (2006). "Institutional Ownership and corporate value", Managerial Finance, Vol. 32 No. 3, 2006 pp. 247-256. 24) Potter, G (1992). "Accounting Earnings Announcements, Institutional Investor Concentration, and Common Stook Returns," Journal Accounting Research, Spring: 146-155. 25) Pourheidari, Omid., Fadavi, Mohammadhassan., Amininia, Meysam. (2015). Investigating the Impact of Tax Avoidance on the Transparency of Financial Reporting of Companies Listed in Tehran Stock Exchange. "Quarterly Journal of Economic Research, 14 (52): 69-85. 26) Rego, S (2003), "Tax avoidance activities of U.S. Multinational corporations", Contemporary Accounting Research, Vol. 20, PP. 805–833. 27) Slemrod, J. 2004. The economics of corporate tax selfishness. National Tax Journal 57: 877–899. 28) Sitinjak, Norman Duma, Chandrarin, Grahita, Sunardi. (2019). Ultimate Ownership Structure, CSR and Tax Avoidance: Evidence from Publicly Listed Manufacturing Firms in Indonesia. IOSR Journal of Business and Management, 21(4): 47-53. 29) Velury, U. and D.S.Jenkins (2006). "Institutional Ownership and The Quality of Earnings", Journal of Business Research, 59:1043-1051. 30) Wang, Xiaohang (2010), "Tax Avoidance, Corporate Transparency, and Firm", Value 5, American Accounting Association Annual Meeting - Tax Concurrent Sessions. Available at SSRN: http://ssrn.com/abstract=1904046 or http://dx.doi.org/10.2139/ssrn.1904046.

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Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 An Analytical Examination of the Effects of Financial Development on Poverty 107 113 15978 EN Samira Motaghi department of economic, payame noor university Mohammad Reza Ranjbar Fallah Department of Economics, College of Humanities, Payam-e-Noor University Salah Ebrahimi Department of Economics, College of Humanities, Chamran University Journal Article 2020 07 19 Financial development is one of the pillars of economic development and growth at national level. While it improves revenue at macro level, its effect on distribution of wealth or income inequality and poverty is unknown. Therefore, the present paper is an analytical attempt to analyze the effects of financial development on poverty along with the factors effective in poverty in selected member countries of the Organization of Islamic Cooperation (formerly Organization of the Islamic Conference). By this study, the author hopes to take a small step towards alleviation of poverty in the Islamic countries that claim to be the leaders of justice and eradication of poverty. Based on the findings, ineffectiveness of the financial development index “ratio of private sector credit to gross domestic production” and the positive effect of government consuming spending on poverty are indicatives of state control on the economy in the selected Muslim countries. Expectedly, the private sectors in these countries is smaller and thinner than their public sectors. It is argued that the productivity of the credits to the private sector, in the countries under study, is not enough to affect distribution of wealth and poverty in return. Moreover, ineffectiveness of the other indices of financial development (ratio of liquidity to GDP) and the positive effect of inflation rate on poverty show that liquidity in Muslim countries has led to a higher inflation rate, inequality, and spread of poverty. Finally, the limited effect of the combined index of financial development in the Islamic countries on poverty indicates inefficiency of financial sector in these countries.

http://www.ijfma.ir/article_15978_8c2290e2857508c014bfd88baaaefbbc.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 Determination the Impact Professional Skepticism and Interpersonal Trust, with Considering the of Organizational Behavior Characteristics on Auditors Job Durability 115 132 15979 EN Azam Jari Accounting Department, Shahrekord Branch, Islamic Azad University, ShahreKord, Iran Daruosh Foroghi Accounting Department, University of Isfahan Hadi Amiri Economic Department, University of Isfahan,Iran Journal Article 2020 07 19 One of the problems that organizations are facing is employee desertion. The desertion of poor staff can lead to increase organizational productivity and it’s benefit for organization, while the desertion of effective staff has bad consequences for the organization. These staff imposes significant direct and indirect costs to the organization when leave it. These costs include finding, training, preparing alternative employees, eliminating some of the tacit knowledge of the organization, and joining individual organization. Therefore, it is necessary for organizations to anticipate the desertion of human capital by identifying the factors that affect the desertion of employees to mitigate the adverse effects of this phenomenon. The purpose of this study is the determination effect of professional skepticism and interpersonal trust among auditors, with considering the of organizational behavior characteristics on job durability. Hence, the relationship between two dimensions of professional skepticism, neutrality and presumptive doubt, and two characteristics of organizational behavior as organizational commitment and organizational perceived support on job durability are measured. The statistical society of this study consists of all auditors of audit institutions that are the member of the Association of Certified Public Accountants who are working as an employee in these institutions and not the organization's partners. The structural equation modeling approach has been used for presentation and partial least square software has been used for analysis. The findings of the study show that the exception of the variables neutrality and interpersonal trust of the auditors, the other variables of research affect the auditors job durability.

http://www.ijfma.ir/article_15979_6e16f49067dd5601bc1afc8296ab5801.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 A Novel Selection Model of Optimal Portfolio based on Fuzzy Goal Planning, Considering Types of Investors 133 144 15980 EN Hamed Omidi Department Management and Economics, Science and Research Branch, Tehran, Iran Hashem Nikoomaram Department of Business Management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran. Fereydon Rahnamay Roodposhti Department of Financial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran Hamidreza Vakilifard Department Management and Economics, Science and Research Branch, Tehran, Iran Journal Article 2020 07 19 Assessing risk assets is one of the most important research issues in the financial field. There are various pricing models of capital assets in financial. In many models, it is not possible to consider a lot of restrictions on portfolio selection. In this paper, for choosing optimal portfolios, taking into account the prosperity and recession periods, and the types of investors in terms of risk taking and risk aversion as a limitation, fuzzy goal models have beed used. And finally, it has been compared to the results of the Markowitz pricing model.

http://www.ijfma.ir/article_15980_234e0da3190b84be38761dd88d5bbd80.pdf

Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 5 17 2020 05 01 The Role of Internal Control System in Improving Service Quality of Privatized Governmental Banks through Exploratory Approach 145 158 15981 EN Ali Reza Mozjat Department of Accounting , bandar e anzali, international Branch, Islamic Azad University. 0000-0003-1030-5345 Mohammad Reza Vatanparast Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran. 0000-0001-8967-085X Mehdi Meshki Miavaghi Finance, Payame Noor University, Rasht, Iran. Keyhan Azadi Accounting Department, Islamic Azad University, Rasht Branch, Rasht, Iran. Journal Article 2020 07 19 Conditions and challenges in the country's banking industry including the increasing intensity of competition in this industry and the quality of services have compounded the importance of assessing the current situation of the internal control systems and its role in increasing the quality of services. It should also be more vital to recognize the drawbacks in order to find new strategies to modify the system and promote it. It is of great importance to identify the factors and characteristics affecting the internal control system of the bank and the quality of services in privatized governmental banks. The statistical population of the study includes experts and banking specialists of privatized governmental banks in Hamadan province. Data collection tools included library studies and semi-structured interviews, the validity of which was validated as content validity. The test results of the model were successful and the conceptual research model was approved and Description of the conceptual model obtained in privatized governmental banks

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