Management Accounting: 5 (43)

Open Access Article

1 - The Relationship between Corporate Philanthropy and Investment Efficiency with an emphasis on the Institutional Investors Ownership
Vahid Taghizdeh Khanqah Younes Badavar Nahandi Aliasghar Mottaghi Houshang Taghizadeh

According to the theory of value creation, the company goal is to increase the shareholder's wealth and pay attention to the individual interests. One of the elements that creates value is the consideration of philanthropic actions. So that doing these actions will give More

According to the theory of value creation, the company goal is to increase the shareholder's wealth and pay attention to the individual interests. One of the elements that creates value is the consideration of philanthropic actions. So that doing these actions will give the company a good image and may affect the performance and investment. Therefore, the purpose of this study is to investigate the relationship between corporate philanthropy and investment efficiency with an emphasis on the ownership of institutional investors at companies listed in Tehran Stock Exchange. Thus, 90 companies were selected for the period of 2010-2017. In order to measure the corporate philanthropy, donations and to measure of investment efficiency, the proposed model based on Iran investment environment was used. A multivariate regression model was used to analyze the data and test hypotheses. The results showed that there is a positive and significant relationship between corporate philanthropy and investment efficiency. That is, humanitarian activities will reduce information asymmetry and increase investment efficiency. Also due to the role of institutional investors, the relationship between company philanthropy and investment efficiency in an environment with institutional investors was investigated. The results showed that institutional investors have a positive impact on corporate philanthropy and investment efficiency. Indeed, in a high regulatory environment, humanitarian action leads to optimal investment. Manuscript profile

Open Access Article

2 - The Effects of Accounting variables on Economies of Scale in banks using Theory of Constraints
Mojtaba Salehi M. Hamed Khanmohammadi

The Theory of Constraints (TOC) is one of the techniques of decision making in strategic management accounting(SMA) and theorizing of performance evaluation With a systematic approach to the firm and in line with the strategy of cost leadership,thinks with the growth st More

The Theory of Constraints (TOC) is one of the techniques of decision making in strategic management accounting(SMA) and theorizing of performance evaluation With a systematic approach to the firm and in line with the strategy of cost leadership,thinks with the growth strategy.The use of TOC in the explanation of Economies of Scale (ES), which are the concepts of management economics, Can lead to system thinking in the banks.The concept of ES refers to the change in the production of products for the change in inputs and the benefits of lowering costs as a result of increased volumes of output.In this research, ES of 17 banks of the country during the period of 1386-1396 was calculated based on the TOC approach. Using the Translag Model and the Frontier 4.1 Software,The average ES of the banks of the country based on the TOC were estimated 0.16.The findings of this research indicate that the banking system of the country has a scale of economies,But it does not fully exploit the potential and continues to operate below the potential capacity,Which is more severe than the Theory of Constraints.Also, according to the results of the research, there is a reverse relationship between the ratio of equity to assets and Economies of Scale of banks using the Theory of Constraints (ES-TOC); As equity increases, the amount of economies is reduced to a scale, and Considering the smaller one of its being, banks will continue to be in a position to economies on a larger scale and increase potential capacity. Manuscript profile

Open Access Article

3 - A study of the association between financial reporting frequency and management myopia
Yasser Rezaei Pitenoei Mohammad Gholamrezapoor

Increased financial reporting frequency is characterized as an appropriate mechanism which contributes to the enhancement of managerial information transparency and influences investment decision-making process. Despites of these significant influences, however, some st More

Increased financial reporting frequency is characterized as an appropriate mechanism which contributes to the enhancement of managerial information transparency and influences investment decision-making process. Despites of these significant influences, however, some studies reveal that it can persuade CEOs to adopt myopic approaches. The present study thus seeks to investigate the relationship between financial reporting frequency and management myopia in the firms listed on the Tehran Stock Exchange over the period of 2013-2017. In pursuit of this goal, the research hypothesis is built upon a sample of 51 listed firms and then tested using multivariate logistic regression model. The results document a significantly positive relationship between financial reporting frequency and managerial myopia. In other words, increasing the frequency of financial reporting will lead to management myopia, which causes executives to ignore investment in R&D, marketing, and long-term activities that benefit the company. Manuscript profile

Open Access Article

4 - A mathematical model for controlling the budget and variable cost of project activities in the status of time-cost tradeoff with consideration of delay penalty
Mohammad Zadehkafash Ahmad Ebrahimi

In this paper, an integer linear programming model is proposed to examine the effect of the project's uncertain budget on its performance. Although much research has been done in the past to optimize the time-cost trade off problem (TCT), in this paper, the project acco More

In this paper, an integer linear programming model is proposed to examine the effect of the project's uncertain budget on its performance. Although much research has been done in the past to optimize the time-cost trade off problem (TCT), in this paper, the project accounting approach has been used in the uncertain terms of receiving the allocated budget, the uncertainty associated with the cost of project activities and its duration. From the innovations of this research, the combination of generalized prerequisite relationships (GPRs) with the various modes of implementation of the activities and scenarios is continuous, discrete and combined (continuous / discrete). Chance constraint programming (CCP) has been used to terminate the variable budget. Stochastic budget limitations are at a predetermined level of confidence. Program evaluation review technique (PERT) has been used to estimate uncertain times, and to calculate the uncertain costs of the operating modes of activities; the triangulation method has been used. The mathematical model, which is to minimize the total time of the project, was solved by software (GAMS), taking into account the early remuneration at the completion of the project and the late delinquency, and was implemented on a real numeric sample to prove the function and validation of the model. Different scenarios have been proposed that the effect of each of them on budget changes and uncertainty over time on direct, indirect, total and project costs are reviewed. Manuscript profile

Open Access Article

5 - Test of Corporate social responsibility engagement Based on two approaches to the Exchange Capital and the moral Capital of bankruptcy likelihood
Anahita Zandi Khosro Faghani Makrani Naghi Fazeli

This study examines the relationship between Corporate social responsibility engagement and their bankruptcy likelihood using annual reports of companies admitted to the Tehran Stock Exchange during the period of 2011-2017. To test the hypotheses of the study, multivari More

This study examines the relationship between Corporate social responsibility engagement and their bankruptcy likelihood using annual reports of companies admitted to the Tehran Stock Exchange during the period of 2011-2017. To test the hypotheses of the study, multivariate linear regression based on Panel data is being used. Extant literature suggests that corporate social responsibility (CSR) accrues social capitals that buffers business risk. In this research, it was shown by documentary evidence that companies with a history of CSR engagement are less likely to file a bankruptcy on their behalf. Moreover, the social capital provided by the company's social responsibility was divided into moral capital and exchange capital. The results indicate that there is a negative and significant relationship between exchange capital and the probability of bankruptcy, and there is a negative, but statistically non-dominant relationship between moral capital and the probability of bankruptcy. as a result the effect of CSR engagement on bankruptcy likelihood primarily stems from the exchange capital, rather than moral capital Manuscript profile

Open Access Article

6 - The Impact of Environmental Strategy, Environmental Uncertainty and Leadership Commitment on Corporate Environmental Performance: The Role of Environmental Management Accounting
Gholamreza Soleimani Hoda Majbouri Yazdi

The purpose of this study was to investigate the impact of environmental strategy of the company, senior management commitment and environmental uncertainty, emphasizing the role of environmental management accounting, on the environmental performance of the company. Th More

The purpose of this study was to investigate the impact of environmental strategy of the company, senior management commitment and environmental uncertainty, emphasizing the role of environmental management accounting, on the environmental performance of the company. This research is based on the structural equation model. Initially, 84 companies with ISO 14001 certificates listed on the Tehran Stock Exchange were collected. Then, 176 managers of these companies were randomly sent to the questionnaire. Of these, 152 questionnaires were received. The return rate of the questionnaire was 86 percent. The factor loadings were the mean of variance extracted and the reliability of the analysis of the model for all variables was used. The discriminant validity or mutual validity of all hidden variables in the model was tested using Forner-Larker's criterion and the parity of heterogeneity. The results of this research show that environmental strategies have a significant positive effect on the environmental performance of companies. Environmental strategies have a positive positive effect on the environmental performance of the company through environmental management accounting. The senior management's commitment to organizational environmental performance has a significant positive effect. The senior management's commitment to the environmental performance of the company through environmental management accounting indirect impact Has a positive meaning. Perceived environmental uncertainty has a significant positive effect on the use of environmental management accounting. Manuscript profile

Open Access Article

7 - The value relevance of management overconfidence with mediation effect of costs stickiness
Zahra Farhadi Abdolhossein Talebi Najafabadi Narjes Kamali Kermani

The Extra-assurance management is one of the most important characteristics of executives that effect on financial decision. When sales decline, overconfident managers, ensure to their capabilities to restore previous levels of sale. It is therefore more likely to overe More

The Extra-assurance management is one of the most important characteristics of executives that effect on financial decision. When sales decline, overconfident managers, ensure to their capabilities to restore previous levels of sale. It is therefore more likely to overestimating sales will be in the near future, the result will be an increase in cost stickiness. However, the cost stickiness by manipulating the natural process costs and expected costs could affect informational content. The confidence comes through influencing management costs stickiness (connection interface), can also affect the value relevance. So management overconfidence comes through influencing costs stickiness, can also affect the value relevance. Hypothesis test results during the years 2007 and 2017 showed that showed that the relationship between cost stickiness and management overconfidence is significant positive. On the other hand the relationship between management overconfidence and value relevance is significant negative. The third hypothesis of the research about the effect of management overconfidence through the costs stickiness on the value relevance could not be verified. Manuscript profile

Open Access Article

8 - Mathematical model for performance based budgeting by productivity approach (Case study: Gas refineries in Iran)
Nouraldin Kalantari Rahmatolah Mohammadipour Masoud Seidi Ardashir Shiri Masoud Azizkhani

The performance-based budgeting (PBB) allocates budget to outcomes. This research, with the introduction of productivity as an alternative to the outcomes, presents a mathematical model for performance-based budgeting in order to allocate budget to productivity criteria More

The performance-based budgeting (PBB) allocates budget to outcomes. This research, with the introduction of productivity as an alternative to the outcomes, presents a mathematical model for performance-based budgeting in order to allocate budget to productivity criteria. New trends in budgeting are process-oriented, so the productivity is suitable for PBB. This research presents a mathematical model for PBB. The model has been designed by Chebyshev's goal programming technique. Data for calculating productivity indicators were collected from gas refineries of Iran in 2011–2015 and analyzed by Excel and GAMS software. Then, the model was tested for determining the 2016 budget of those refineries. The model was solved by LINGO software by linking it to Excel. The solution of the model reduced 1.47% of the total refinery's budget compared with the actual budgets for 2016. The results of this study showed that the presented model provides significant improvement in the level of achievement of goals and the objective function. Saving costs and collecting funds from low-productivity units and directing them to high productivity is a strategic and important policy. Manuscript profile

Open Access Article

9 - Conceptual Explanation of Target Costing Based on Critical Perspective
Mohammad Namazi Zohreh Hajiha Hassan Chenari

The aim of this research is to advance the theory belonging to the determinants of adoption of target costing (TC) system by firms. Although the previous studies describes several factors, it clarifies the instances under which TC adoption will add firm value, which ref More

The aim of this research is to advance the theory belonging to the determinants of adoption of target costing (TC) system by firms. Although the previous studies describes several factors, it clarifies the instances under which TC adoption will add firm value, which refers to b . T M S w’ 1978 evaluate the cost orientation of TC adoption, which responds the question as to why firms do not adopt TC even when the previous studies emphasize to the benefits of adoption. The paper concludes that possess of prospector managers the scope to take advantage of the high information asymmetry to inhibit TC adoption, because their stock-based compensation increases with volatility in earnings and stock returns. In contrast, managers with defending strategy obtain extensive cash-based compensation with the adoption of TC, which helps achieve much firm profits. The paper concludes with specific sources of agency problems and some avenues for future research. In the other words, adoption of a defensive strategy by managers in companies leads to value creation a long with the interests of all stakeholders intra and inter organization. Manuscript profile

Open Access Article

10 - The Effect of Strategy of Cost Leadership and Product Differentiation Strategy on Cost of Equity
Elham Eghdami Bahman Banimahd

This study investigate the relationship between strategy of cost leadership and product differentiation strategy on equity costs. The aim of cost leadership strategy is product cost reduction and the objective of product differentiation strategy is product quality impro More

This study investigate the relationship between strategy of cost leadership and product differentiation strategy on equity costs. The aim of cost leadership strategy is product cost reduction and the objective of product differentiation strategy is product quality improvement. So, the aim of this research is investigation of theses strategies on cost of capital.The present study is descriptive and correlational in terms of method and is a descriptive study in terms of nature. Also, this research is an applied research. Data analysis was performed using multiple regressions using panel data. The statistical population of the research is the companies listed in the Tehran Stock Exchange between 2011 and 2016. Meanwhile 104 companies selected for sample population. The results of this study indicate that there is a reverse and significant relationship between cost leadership strategy and firm's equity cost . But there is no significant relationship between product differentiation strategy and firm's equity cost. Manuscript profile

Open Access Article

11 - Internal Control Weaknesses and Market Value of Cash Holdings Department of Accounting, Payame Noor University (PNU), Tehran, Iran
Davood Hassanpour Mehdi Safari Gerayli

The existence of weak internal controls provides directors to engage in opportunistic exploitation of corporate cash resources. As such, corporate cash holding is anticipated to increase investors' concerns, which, in turn, leads to the underestimation of corporate cash More

The existence of weak internal controls provides directors to engage in opportunistic exploitation of corporate cash resources. As such, corporate cash holding is anticipated to increase investors' concerns, which, in turn, leads to the underestimation of corporate cash value in the market. Accordingly, the present study examines the effect of internal control weaknesses on the market value of cash holdings. In doing so, Faulkender & Wang (2006) model was used to measure the market value of cash holdings. The research hypothesis was tested based on a sample of 97 firms listed on the Tehran stock exchange during the years 1391 to 1395 and using multiple regression model based on panel data techniques. The results indicate that presence of internal control weaknesses reduces the market value of corporate cash holdings. This suggests that investors undervalue the cash held in the firms with weak internal controls. Manuscript profile

Open Access Article

12 - Investigating the Perception of Financial statements preparers of Acceptance and Application of International Financial Reporting Standards (IFRS)
Shirzad Naderi Farzaneh Heidarpour Ramzanali Royaei Ghodratolah Talebnia

Many countries today, with regard to the benefits of International Financial Reporting Standards (IFRS), tend to accept and implementation it or have harmonized their national standards with it, and on the other hand, the assessment of the fundamental changes in account More

Many countries today, with regard to the benefits of International Financial Reporting Standards (IFRS), tend to accept and implementation it or have harmonized their national standards with it, and on the other hand, the assessment of the fundamental changes in accounting and financial reporting systems, without considering the views of its stakeholders, can affect the probability of its successful. Accordingly, the purpose of this study is to assess the perception of financial statements preparers (accountants) as one of the main stakeholders of the change in the financial reporting system and the implementation of IFRS. For this purpose, accountants' perception working in subject and non-subject companies use of IFRS, In accordance with the requirements of the Tehran Stock Exchange was assessed by considering four factors individual, technical, situational and change processes through a questionnaire distributed among accountants. The results of the questionnaires were analyzed using structural equation method (PLS). The findings of the research show that accountants 'perception is influenced by the above four factors, but the effect of these factors on auditors' perceptions differs from the implement of IFRS in Iran. Manuscript profile

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