No abstract

Purpose—The study on the relationship between accounting conservatism and earnings quality is not new. However, the results are inconsistent and mixed, and to some degree, even contradictory, which represents a gap in the literature. The purpose of this study is to provide some explanations for these mixed results in the literature by investigating the effect of corporate governance mechanisms, as a moderator variable (which has not been considered in the literature before), on the relationship between accounting conservatism and earnings quality based on the Dechow and Dichev model and the modified Jones model. Design/methodology/approach—The statistical model used in this study is a multivariate regression model; furthermore, the statistical technique used to test the hypotheses is panel data. Findings—The findings reveal that the adopted models (Dechow and Dichev) and the corporate governance mechanisms (such as board independence, large shareholders, and institutional ownership) can have a moderating effect on the relationship between accounting conservatism and earnings quality. These findings are exciting, contribute to the current literature, and explain some of the reasons for mixed results. Practical implications—The findings of the current study provide an important guideline for firms to consider the impact of adopted models (Dechow and Dichev), as well as the corporate governance mechanisms (such as board independence, large shareholders, and institutional ownership) on the relationship between accounting conservatism and earnings quality. Originality/value—Examining the impact of Dechow and Dichev models as well as the corporate governance mechanisms on the relationship between accounting conservatism and earnings quality is new in this paper. It can explain part of the reasons for the mixed and inconsistent results in the literature.

Purpose The purpose of this study is to investigate the influence of the ownership of institutional shareholders, the proportion of non-executive members, the percentage of ownership of major shareholders, the duality of the tasks of chief executive officer and chairman of the board of director, financial leverage, the amount of the remuneration of the board of director, the company’s life and the amount of export on internet financial reporting. Design/methodology/approach For this purpose, the authors surveyed the 301 listed companies on Tehran Stock Exchange in 2015. The statistical method used to test the hypothesis of the study was cross-sectional data. Findings The results indicate the negative impact of ratio of non-executive members and the positive impact of financial leverage, size, liquidity and the life of the company in stock, over internet financial reporting. Originality/value The current study is almost the first study which is conducted in a developing country, and the results may helpful to the other developing nations.

This study investigates the interactive effect of ownership structure on the relationship between annual board report readability and stock price crash risk in companies listed on the Tehran Stock Exchange (TSE). The negative skewness model was used to measure the crash risk of stock prices and the Fog index was used for determining the readability of the board of directors’ report. The ownership structure is examined in institutional ownership, significant managerial ownership, and family ownership. The data of companies listed on the TSE from 2013 to 2019 have been used. The statistical method of this research is multiple regressions and, to test the research hypotheses, the data panel model and the ordinary least squares method have been employed. Overall, this study provides new evidence to explain the reporting quality and the crash risk of stock prices from the lenses of the agency theory. It further investigates the interactive effect of ownership structure on the relationship between annual board report readability and stock price crash risk. The results show a significant correlation between the readability of the board of directors’ report and the crash risk of stock prices. Furthermore, the relationship between the readability of the board report and stock price crash risk is not affected by the ownership structure, including institutional ownership, significant managerial ownership, and family ownership. It can be inferred that an ownership structure, which includes institutional shareholders, significant shareholders, and family ownership, increases the supervision of managers and their reports, so they cannot keep adverse information from being released. This will ultimately improve the readability of their reports and reduce the risk of stock price crashes.

This study aimed to examine the impact of enterprise risk management (ERM) on the firm performance of capital markets in developing nations such as Iran, Saudi Arabia, and Iraq. In order to achieve the study’s primary purpose, the economic environments of Iran, Iraq, and Saudi Arabia, three neighboring and developing nations, were examined from 2012 to 2019. The hypotheses were tested using panel regression analysis. According to the data, ERM might boost the return on assets and lower the total assets of Iranian enterprises while raising the total assets of Iraqi firms. In addition, the data demonstrated that ERM decreased sales growth and boosted net profit margins in Saudi Arabian companies. ERM enhanced the return on assets in Iranian enterprises and sales growth in Saudi Arabian firms while lowering sales growth in Iraqi firms. In addition, it was shown that total asset turnover increased in non-fraudulent Iranian companies but fell in their Iraqi counterparts. The outcomes of this study revealed substantial evidence regarding the financial conditions and performance of companies operating in emerging nations. As a result, it can be inferred that ERM efficiency and firm performance can be influenced by the firm’s nature and structure, as the findings in these three economic environments were fundamentally distinct. This research contributed to the literature on ERM as one of the essential elements influencing business performance in emerging economies with varying capital market laws. In addition, the literature and acquired data demonstrate the scope of fraud and its influence on the performance of businesses in developing nations.