List of Articles Mohammad Hassani

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  1 - The Mediator role of Information Asymmetry in Imperfect Competition Market on the relation between Earnings Forecast Bias & Idiosyncratic Risk derived from Capital Assets Pricing Model
  Mohammad Hassani Sanaz Moradi
  10.30495/afi.2021.1925455.1016
  Theoretically, firms should reduce information risks to provide a transparent environment for different groups in capital market to make decisions. Therefore, identifying potential risk factors is important. This paper investigated the impact of earnings forecast bias a More

  Theoretically, firms should reduce information risks to provide a transparent environment for different groups in capital market to make decisions. Therefore, identifying potential risk factors is important. This paper investigated the impact of earnings forecast bias and information asymmetry in imperfect competition market on the idiosyncratic risk. It is used the standard deviation of residuals extracted from capital asset pricing model to measure the idiosyncratic risk. Earnings forecast bias is measured based on the absolute value of difference between actual value and forecasted value of earnings per share scaled by the beginning stock price. In addition, information asymmetry is assessed based on the stock price bid-ask spread. Using filtering method, 147 firms listed in Tehran Securities & Exchange during 2013 to 2018 selected as research population. Research hypotheses analyzed through multivariate regression models. Research results showed that more earnings forecast bias lead to increase the idiosyncratic risk. In addition, high level of information asymmetry caused to increase the idiosyncratic risk. Also information asymmetry lead to strengthen the positive relation between earnings forecast bias and idiosyncratic risk. As a whole, firms with high level of earnings forecast bias & information asymmetry as inverse proxies of information quality which have worse information environment have more idiosyncratic risk. Manuscript profile
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  2 - Cost of equity capital: the role of stakeholders’ rights protection in moderating financial information risk
  Mohammad Hassani Maryam Jabarvand Behrouz
  10.30495/afi.2023.1971166.1163
  Purpose: This paper assessed the impact of financial information risk derived from earnings misstatement on cost of equity capital, as well as the role of stakeholder’s rights protection criterion.Methodology: The cost of equity capital is measured based on stockh More

  Purpose: This paper assessed the impact of financial information risk derived from earnings misstatement on cost of equity capital, as well as the role of stakeholder’s rights protection criterion.Methodology: The cost of equity capital is measured based on stockholders’ expected rate of return which extracted from capital asset pricing model. Also, stakeholder’s protection is assessed through various criteria such as separation of chairman’s duty, board independence, existence of internal auditor, shareholder with vote right, ownership concentration, audit adjustment, timeliness & reliability of information, disclosure of audit fee and managerial compensation. Accrual earnings management is considered as a proxy of financial information risk which is measured based on the standard deviation of residuals absolute values extracted from accrual model. Research population includes 183 firms listed in Tehran Securities & Exchange over the period 2012 to 2021. Research hypotheses analyzed through multivariate regression models using panel data by controlling industry-year effects.Findings: Findings documented that high level of financial information risk caused to increase the cost of equity capital. Also, high level of stakeholder’s protection index led to decrease the cost of equity capital; In addition, stakeholder’s protection indices weaken the impact of financial information risk on cost of equity capital.Originality/Value: The evidences showed that the implementation of governance procedures in protecting stakeholders’ rights and reducing financial information risk caused by earnings misstatement, play an important role in reducing the cost of equity capital; so, understanding this issue can be a significant point in adjusting stakeholders' expectations. Manuscript profile