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Rezaei, Farzin
- Relationship between Firm Characteristics and Financial Restatements
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Authors
Affiliations
1 Accounting Management and Accounting Faculty, Islamic Azad University Qazvin Branch, Qazvin, IR
2 Islamic Azad University Qazvin Branch, Tehran, IR
1 Accounting Management and Accounting Faculty, Islamic Azad University Qazvin Branch, Qazvin, IR
2 Islamic Azad University Qazvin Branch, Tehran, IR
Source
Journal of Commerce and Accounting Research, Vol 2, No 4 (2013), Pagination: 28-35Abstract
This study investigates the relationship between firm characteristics and financial restatements. A sample consisting of 900 year - firm during the period 2003 to 2011 was studied. The logistic regression was applied to test the hypothesis. In the first method, the significant direction of relationship between the variables was examined. Using the backward method, an optimal model was introduced to predict the financial restatements. To measure the accruals, the modified jones model was used by Dechow et al. The results show a negative and meaningful relationship between the firm size and financial restatements. There is also a positive relationship between the financial restatements with firms' losses in a year before the statement, financing through the floatation and B/P ratio.Keywords
Financial Restatement, Firms Characteristics, Firms Size, Financing, Firms Loss
References
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- A Review on Transparency in Financial Reporting and its Effects on Tax Avoidance and Firm Value
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Authors
Affiliations
1 Qazvin Branch, Department of Accounting, Qazvin, IR
2 Qazvin Azad University, Qazvin, IR
1 Qazvin Branch, Department of Accounting, Qazvin, IR
2 Qazvin Azad University, Qazvin, IR
Source
Journal of Commerce and Accounting Research, Vol 3, No 2 (2014), Pagination: 8-21Abstract
Tax avoidance, which results in a reduction in outgoing cash flows from the firm to the government, has long been considered as a value by shareholders. The general overview on tax avoidance indicates that the opportunistic managers, who seek to avoid tax payments, are using opacity in their financial reporting as a means to take financial advantages and mainly toward their own personal interests too. Transparency in financial reporting results in ease of supervision for shareholders on the performance of managers. Also, opportunistic managers use other methods and techniques to pay lesser tax which will cause the owners of the firms to bear certain costs. To shed light on the viewpoints about the disagreement between shareholders and managers, I have used the opacity criteria in financial reporting as well as different scales to measure tax avoidance in order to analyze how corporate transparency relates to tax avoidance. The hypotheses suggest that tax avoidance is negatively associated with corporate transparency and firm value. These analyses have been based on the financial data obtained from 100 listed companies in the Tehran Stock Exchange from 2002 to 2010 employing the multiple linear regression method.
The results suggest that there is a negative meaningful relationship between tax avoidance and corporate transparency and also firm value.
Keywords
Corporate Transparency, Tax Avoidance, Firm Value.References
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