Study of the effect of institutional ownership on accounting quality and cost of capital

This study was conducted to investigate the effect of institutional ownership on accounting quality and cost of capital. This research is quasi-experimental in the field of positive accounting research and based on real information in the financial statements of companies. It is also of correlational type and, it is a descriptive (comparative / analytical) research in terms of data collection method. The research methodology is post-event due to the use of historical information in terms of time, and because it can be used in the process of using information and can be used in practice, it is a kind of applied research. The statistical population of the present study includes all companies listed on the Tehran Stock Exchange, with the exception of banks and financial and credit institutions, investment companies, financial intermediaries, holding companies and leasing companies (which have different financial structure and management principles than other companies). The information of these companies for the 7-year period from 2011 to 2017 has been studied. In order to examine the relationship between institutional ownership and quality of accounting information and cost of capital debt and to examine the moderating role of institutional ownership in the relationship between quality of accounting information and cost of capital debt, regression analysis was presented. Also, in the regression analysis, the generalized regression model was fit, and the coefficients of regression variables were estimated. In addition, the test of zero regression coefficients for the significance of the model and each of the variables was performed. The test results of the research hypotheses showed that there is a significant relationship between institutional ownership and quality of accounting information and cost of capital debt, but institutional ownership has not been able to moderate the relationship between quality of accounting information and cost of capital debt

Study of the effect of institutional ownership on accounting quality and cost of capital

This study was conducted to investigate the effect of institutional ownership on accounting quality and cost of capital. This research is quasi-experimental in the field of positive accounting research and based on real information in the financial statements of companies. It is also of correlational type and, it is a descriptive (comparative / analytical) research in terms of data collection method. The research methodology is post-event due to the use of historical information in terms of time, and because it can be used in the process of using information and can be used in practice, it is a kind of applied research. The statistical population of the present study includes all companies listed on the Tehran Stock Exchange, with the exception of banks and financial and credit institutions, investment companies, financial intermediaries, holding companies and leasing companies (which have different financial structure and management principles than other companies). The information of these companies for the 7-year period from 2011 to 2017 has been studied. In order to examine the relationship between institutional ownership and quality of accounting information and cost of capital debt and to examine the moderating role of institutional ownership in the relationship between quality of accounting information and cost of capital debt, regression analysis was presented. Also, in the regression analysis, the generalized regression model was fit, and the coefficients of regression variables were estimated. In addition, the test of zero regression coefficients for the significance of the model and each of the variables was performed. The test results of the research hypotheses showed that there is a significant relationship between institutional ownership and quality of accounting information and cost of capital debt, but institutional ownership has not been able to moderate the relationship between quality of accounting information and cost of capital debt

The relationship between financial leverage and profitability with an emphasis on income smoothing in Iran's capital market

The main purpose of this research is the study of the financial leverage effect on profitability and also the presence of smoothing in listed companies of Tehran Stock Exchange. Since financial reports are important in forecasting and decision making of users, therefore, in this research has been addressed to survey income smoothing effect on financial leverage and profitability during 2006-2010 period. In this study, 60 companies listed on the Tehran Stock Exchange were selected by using systematic elimination way and for analysis and hypothesis testing using from statistical techniques such as simple linear regression and Pearson's correlation test and Zr. And finally used in ECKEL model for identifying smoothing firms from non-smoothing. This research findings confirmed the presence of smoothing and relationships between financial leverage and profitability in listed companies of Stock Exchange and showed that firms do smooth include operating profit, gross profit and net profit. The main result of the study indicates that despite significant relationship between some variety of research hypotheses in smoothing and non-smoothing firms, there are significant differences between financial leverage and profitability between these two groups of firms

The relationship between financial leverage and profitability with an emphasis on income smoothing in Iran's capital market

The main purpose of this research is the study of the financial leverage effect on profitability and also the presence of smoothing in listed companies of Tehran Stock Exchange. Since financial reports are important in forecasting and decision making of users, therefore, in this research has been addressed to survey income smoothing effect on financial leverage and profitability during 2006-2010 period. In this study, 60 companies listed on the Tehran Stock Exchange were selected by using systematic elimination way and for analysis and hypothesis testing using from statistical techniques such as simple linear regression and Pearson's correlation test and Zr. And finally used in ECKEL model for identifying smoothing firms from non-smoothing. This research findings confirmed the presence of smoothing and relationships between financial leverage and profitability in listed companies of Stock Exchange and showed that firms do smooth include operating profit, gross profit and net profit. The main result of the study indicates that despite significant relationship between some variety of research hypotheses in smoothing and non-smoothing firms, there are significant differences between financial leverage and profitability between these two groups of firms

The effect of dividend policy on stock price volatility and investment decisions

The allocation of a part of the profit as the dividends considered as one of the significant issues in financial management. Through applying this policy, the main purpose is the capital maximization of stockholders by receiving the dividend and increasing the stock price. The purpose of the present research is to assess the effect of dividend policy on stock price volatility and investment decisions. The statistical community of the present research includes the admitted firms into the Tehran Stock Exchange of which only 65 firms have been selected after the application of the considered criteria. The time of the research is three years from 2007 to 2012 and correlation analysis method and multiple regressions were used in order to analyze the data and test the hypotheses. The research results indicate that the dividend policy has a significant effect on stock price volatility in a short time. However, the dividend policy does not have a significant effect on stock price volatility in a long time. Moreover, the dividend policy does not have a significant effect on investment decisions in terms of cash and accrual

The effect of dividend policy on stock price volatility and investment decisions

The allocation of a part of the profit as the dividends considered as one of the significant issues in financial management. Through applying this policy, the main purpose is the capital maximization of stockholders by receiving the dividend and increasing the stock price. The purpose of the present research is to assess the effect of dividend policy on stock price volatility and investment decisions. The statistical community of the present research includes the admitted firms into the Tehran Stock Exchange of which only 65 firms have been selected after the application of the considered criteria. The time of the research is three years from 2007 to 2012 and correlation analysis method and multiple regressions were used in order to analyze the data and test the hypotheses. The research results indicate that the dividend policy has a significant effect on stock price volatility in a short time. However, the dividend policy does not have a significant effect on stock price volatility in a long time. Moreover, the dividend policy does not have a significant effect on investment decisions in terms of cash and accrual

The effect of dividend policy on stock price volatility and investment decisions

The allocation of a part of the profit as the dividends considered as one of the significant issues in financial management. Through applying this policy, the main purpose is the capital maximization of stockholders by receiving the dividend and increasing the stock price. The purpose of the present research is to assess the effect of dividend policy on stock price volatility and investment decisions. The statistical community of the present research includes the admitted firms into the Tehran Stock Exchange of which only 65 firms have been selected after the application of the considered criteria. The time of the research is three years from 2007 to 2012 and correlation analysis method and multiple regressions were used in order to analyze the data and test the hypotheses. The research results indicate that the dividend policy has a significant effect on stock price volatility in a short time. However, the dividend policy does not have a significant effect on stock price volatility in a long time. Moreover, the dividend policy does not have a significant effect on investment decisions in terms of cash and accrual

Operating Leverage and Firm Value of Manufacturing Firms in Nigeria

The study examined the impact of Operating leverage on firm value of quoted manufacturing firms in Nigeria. The study selected twenty-two (22) listed (Consumer goods sector) manufacturing firms listed on Nigeria Stock Exchange from 2013-2019.The data used for this study are panel data. The result of this study revealed that DVAS (Variability in sales) has negative insignificant effect on firm value at (β=-1.04, P>0.05). DVPBIT (Variability in profit before interest and tax) has positive insignificant effect on firm value at (β=12.6, P>0.05). OPLE (Operating leverage in asset) has negative significant effect on firm value at (β=-18.95, P<0.05). Based on the findings of the study, it were therefore recommended that; firms would benefit from the quick variability in fixed asset to current asset. (Changes in fixed cost into variable cost influences sales and long-run profit).

A Study of the Effect of Financial Leverage on Earnings Response Coefficient through out Income Approach: Iranian Evidence

Abstract: Corporations raise their equity by different methods. Decision making on the choice of better methods is a challenge most financial managers of corporations face. In particular, accounting earnings come with informative content. In companies with outstanding debt the reaction of stock prices to unexpected earnings will be affected by the firm's bankruptcy risk. This is because it is the bankruptcy risk that determines the mechanism for allocation of wealth change due to unexpected earnings among stockholders and bondholders. Thus, it is expected that financial leverage is influences the earnings response coefficient. In this paper the relationship between financial leverage and the earnings response coefficient is studied through an income approach. The aim of the study is to provide further evidence about factors influencing the earnings response coefficient. The study includes corporations listed on the Tehran Stock Exchange. Research data has been collected from the seven years period from 2002 to 2008, and data analysis was done using multiple regressions. Results indicate that the earnings response coefficient for the low-leverage firms group is larger than the high-leverage ones, with differences in the means among groups statistically significant