Comparing Relative and Additive Contents of Return with Cash Recovery Rate

One of the goals of financial reporting is to provide the useful information in order to facilitate the decision making. Accounting information system is of high importance for the users to make specific decisions. The information should be analyzed to present the valuable information to the investors so that in this paper, the relative content and return additive with cash recovery have been addressed in the corporates of Tehran Stock Exchange. This research population includes the accepted corporates by Tehran Stock Exchange during a five year period (2010-2014). Finally, considering the research limitations and using the systematic deletion method, the information related to 109 corporates has been gathered and with respect to the defined goals, this research is regarded as an applied one. In terms of the research design, it is an event one because of background data and its deduction method is an induction and correlation one. Current study involves a primary hypothesis and six secondary hypotheses; here, a linear regression method has been used to examine the hypotheses. In order to analyze the data and test the research hypotheses, the software Eviews has been utilized

The Impact of Corporate Governance Index on Capital Cost and Systematic Risk

Appropriate corporate governance mechanisms are essential factors for efficient use of resources, improvement of accountability and transparency, and observation of fairness and the rights of all stakeholders of firms. This study investigates the relation of corporate governance index to capital cost and systematic risk. The sample consists of 235 firms listed in Tehran Stock Exchange in 2014. This study uses regression analysis method to test the hypotheses and applies 4 corporate governance criteria to measure corporate governance index primarily calculated by SEO in 2014. The results show a significant negative relation between capital cost and corporate governance index and a significant positive relation between systemic risk and corporate governance index. Therefore, effective and strong corporate governance reduces information asymmetry and ensures accurate reporting, increases transparency and stakeholders' confidence and consequently reduces cost of capital. Also, shareholder-oriented corporate governance mechanisms have more systematic risk, thus good corporate governance may lead to higher risk instead of preventing it

The Role of Financial Inflexibility in Explaining Value Anomaly with‌ Emphasis on the Business Cycle

Partly on the issue that value stocks earn higher returns than growth stocks, there is agreement, but the interpretation of the cause is controversial and there is no clear explanation for this stock feature. According to investment-based asset pricing theory, the financial inflexibility is the reason for expected return of value firms covary more with recessions than the expected returns of growth firms. The present study seeks to determine the effectiveness of the value anomaly of financial inflexibility with attention to the business cycle. In order to achieve the research goals using systematic removal sampling method, the monthly data of 450 year - firm has been used during the period from 2008 to 2017. To test the research hypotheses, regression method using time series and panel data was used. The results of the research show that the financial inflexibility leads to a positive risk premium in the stock level and investment portfolios and value firms gain higher future returns than growth firms due to compensate for the risk of financial inflexibility, and Finally, the effect of financial inflexibility on stock risk premium is not constant during the business cycle, and in times of recession, value companies are more exposed to risk of financial inflexibility than growth companies