International Research Journal of Finance and Economics  Issue 158  December - Conference Special Issue 2016

 

The Impact of Timely Identification of Unachieved Losses on Stopping Non-profitable Operations and the Cost of Capital of Companies Accepted in Tehran Stock Exchange	7-14
Seyed Hadi Hashemi and Hamid Reza Akhbari
Abstract: The main objective of the present research is to investigate the relationship between timely identification of unachieved losses with termination of non-profitable operations in companies accepted in Tehran stock exchange. In this research, in accordance with the foregoing objectives, 3 hypotheses have been raised that have been statistically analyzed. Statistical samples include 160 companies accepted in Tehran stock market whose data has been statistically analyzed during a period of 10 years (from 2005 until 20144). Research hypotheses have been through multiple regression and logistic models; according to the findings, increasing the timely realization of unachieved losses raises the possibility of stopping non-profitability. Also, the results showed that by increasing delay in terminating the profitable operation, timely identification of unachieved goes up. However, in consistent with the findings, the delay in stopping non-profitable operations has had no effect on the cost of the capital of statistical sample of companies during the course of the study. Keywords: Timely Identification of Unachieved Losses, Termination of Non-profitable Operation, Cost of Capital JEL Classification: D24, E22, P11
Investigating the Influence of Customer Orientation of Seller, Value-Based Selling and Seles Strategy on the Market Performance by using the Multi-level Model (Case Study: Shahrvand Shopping Mall)	15-23
Maryam Mahdavi and Fatemeh Eidi
Abstract: Recently, in the literature of marketing, the function of selling has been distanced from merely being an operating element and has promoted to a strategic element. The purpose of this research is investigating the influence of Customer Orientation seller, Value-focused Selling and the Seles Strategy on the Market Performance by using the multi-level model. The influence of the elements of the Seles Strategy (partitioning of customers, Customer Prioritization and the selling model) on the Market Performance was examined on an organizational level and also the effect of Customer Orientation seller and value-focused selling was examined in an individual level. In this research the statistical population is the number of 2064 managers and sellers of 31 branches of Shahrvand shopping malls in the Tehran city. Statistical Sampling by using the Cochran formula in restricted population was calculated that it is include of 324 persons from current sellers and managers in Shahrvand shopping malls. Regarding the method of inference, this research is descriptive – survey research and for gathering the information by questionnaire has been used. The relationships between variables and the Research hypotheses were also examined by using the modeling of structural equations. Finally, all the nine hypotheses stated in the research were verified and confirmed. The results of the hypotheses showed that dimensions and aspects of Seles Strategy (Selling model, Customer prioritization, and partitioning of customers) and respect toward customers and value-focused selling are effective in the sale performance. Salesperson Performance. Keywords: Selling Strategy, Sale Performance, Customer-Orientation, Value-Based Selling, multilevel model JEL Classification: L11, L22, O21,
Establishment of Activity-Based Costing (ABC) in order to Extract Raw Water Cost in the Kurdistan Regional Water Company	24-31
Eghbal Rezaei and Ataollah Mohamadi Malgharni
Abstract: This study has been considered with purpose of establishing the feasibility of the Activity-Based Costing (ABC) system in the Kurdistan Regional Water Company. The statistical population of this research is technicians, administrative and financial parts of Kurdistan Regional Water Company which there are 45 people. As well as financial statements and other accounting records for the period 2009 to 2015 are now. To test the research hypotheses Topsis decision model, linear regression and paired t-test was used. The Method of data analyzing is a cross-sectional data and year to year. The results show that the accounting system by ABC, the establishment and implementation of the Kurdistan Regional Water Company is, according to the second hypothesis with accuracy in costing the price of water can increase the profitability of the company, also based on a paired t-test showed a significant difference statistically between traditional costing systems and system activity-based costing (ABC) exists. Keywords: direct costs, indirect costs, overhead costs, costing water, Activity-Based Costing (ABC), Kurdistan Regional Water Company. JEL Classification: D24,J3
Investigating the Relationship between Fluctuations of Institutional Investors’ Ownership, Corporation’s Size and Financial Leverage on Auditing Size of Corporations Accepted in Tehran Stock Exchange	32-43
Fatemeh Malmir and Masoud Barati
Abstract: Crediting the information which is presented in financial statements, bring up the need for auditing. It is obvious that auditing size is dependent to the range and nature in which the investigations are performed. Thus, it is expected that the influence of institutional investors may cause an increase in range and domain of investigations. The purpose of this study, is investigating the effects of fluctuations of institutional investors’ ownership, corporation’s size and financial leverage on corporation’s auditing size in Corporations of Accepted in Tehran Stock Exchange. The method of study is practical considering its purpose, correlational considering its nature and content and it follows multivariate regression and logistic regression statistical method. In this paper, financial information of 109 Corporations of Accepted in Tehran Stock Exchange is studied during 2009-2015. Systematic removal method is used for sampling. The results of study indicate that fluctuations of institutional investors’ ownership have a positive and significant effect on auditing size while size of corporation and financial leverage have a negative and significant effect on auditing size . Also, fluctuations of institutional investors’ ownership, size of corporation and financial leverage have a negative and significant effect on auditing size. Keywords: Fluctuations of institutional investors’ ownership, corporation’s size, financial leverage, auditing size JEL Classification: G23, M42
Relationship between Ownership Structure and Stock’s Return	44-50
Morteza Heidari and Mohammad Mazaheri Kalahroodi
Abstract: Relationship between ownership structure and stock’s return is important issue of financial management. Stock’s return of economic entity is function of several factors and it is factor of ownership structure and it can be effective performance and returns. Aim of this research is investigating relationship between ownership structure and stock’s return in companies’ listed at Tehran stock exchange. This research used 663 data of companies during 2004 and 2011. We used multiple regression and results of research indicated that significant and positive relationship exists between type of ownership and stock’s return; whereas, there was not significant relationship between institutional ownership and stock’s return. Keywords: Ownership structure, stock’s return, Shareholders. JEL Classification: G23, G32
Investigating the Relationship between the corporate governance and the Salary Expense of Stockholders in the Corporations of Accepted in Tehran Stock Exchange	51-55
Mona Farjadian, Batool Zarei and Ghodratollah TalebNia
Abstract: The main purpose of this study is examining the relationship between the corporate governance and the expense salary of stockholders in the accepted companies in Tehran stock exchange. For this purpose a sample consisting of 100accepted companies in Tehran stock market in the six-year period of 1388 to 1393 was examined .For examining the validation of the hypotheses the multi-variable regression test is used. The results obtained from testing the hypotheses showed that from the perspective of the structure of management, corporate governance has a negative and significant effect on the salary expense of stockholders. The results showed that there is not a significant relationship between corporate governance from the viewpoint of clearance of information and corporate governance from the viewpoint of structure of possession and control with the expense salary of stockholders. Keywords: corporate governance, salary expense of stockholders, information clearance, structure of ownership and control, structure of Board of Directors. JEL Classification: G34, G23
Are Banks’ Stock Return in Turkey Affected By Credit Rating Announcements?	56-67
Mahmoud Abdulbaki and Mohammad Muneer Kallash
Abstract: This paper analyze the effect of the announcement of credit rating change on banks’ stock returns and the stock market in Turkey. These changes occurred during the political changes in the neighbors Arab countries for the period from 2010 to 2014, built on signaling hypothesis, these announcements induced positive abnormal return after down- grade which are not noticeable in the event window period of 30 days pre and post the event. We found a negative correlation between change in trading volume and in bank size. To somehow his study emphasize that the signaling hypotheses proves that new news hold abnormal return. On July 3rd, 2012 Credit Rating Agencies (CRAs) decided to upgrade eleven large banks in Turkey. The most rational reason behind this sudden upgrade is the huge capitals transference from Tunis, Libya, Egypt, Syria, Iraq, and Yemen looking for a safe and near economic environment and in the developing market in Turkey, these capitals play a basic role of enhancing the position of Turkey as one of highest developed International capital markets of the world. On parallel, Turkish government achieved several legislative steps to facilitate entry of these capitals and to make the Turkish market more attractive for international investments. Based on the assumption that there is reverse correlation of volatility and both long term investors and short term institutional investors, both aspects give the character of this market after the announcement. These announcements of credit rating change seem to be attached to political and legislative arrangements taken by Turkish government such as: reduced interest rate, exchange rate and banks’ monetary system regarding money transfer. More deeply, Turkish movement may need to attract international investments other than European investments after refusing Turkey of joining European Union several times. This transformation began with increasing investments to generate higher demand and trading volume and change the character of the investors and the Turkish stock market in general to long term by decreasing the volatility. This transforming of bank sector regulations started in the early 2000s after cruises by three steps: restructuring program of banks in 2002; firstly, creation of limitation of deposit insurance system in 2004; and lastly, the law of governance related to banking in 2005. The crisis adversely affected financing in foreign exchange market and domestic bond market in Turkey, central bank changed the monetary operations and set up special facilities by widening the range of securities, purchased and lengthen their maturities to support local currency funding. Policy rates and reserve requirements were lowered counter cyclically, also central bank provide, financing in foreign and domestic currencies and using foreign reserves as opposed to other sources, Cecchetti, S et,al (2010). Efficient use of resources is the most important factor , funding the businesses and the households instead of the government that shows efficient placement of the funds, Ogut, H et,al (2012). Keywords: financial institutions; stock returns; credit rating; volatility; announcements; event study; Borsa Istanbul JEL Classification: G14, G21, G24, G28
The Application of the Total Risk Approach and the Continental Allocation in the Economic Diversification – Evidence from Qatar Economy	68-83
Elsayed Elsiefy and Moustafa Ahmed AbdElaal
Abstract: In this paper we tried to rich the field of the economic diversification by examined the application of three portfolio selection models. These models are The Markowitz’s model, Correlation Model (CCM), and Sankaran and Patil model (SP). We investigated also two data classification, the country-level data and the continental data. To support the study, empirical results from the world and the Qatar’s data have been extracted. The study focuses on deriving and designing optimal portfolios from within alternative investment to assist the Qatar Investment Authority in rationalizing its investment decisions. We looked at what Africa represents in terms of other non-energy investments/sectors for Qatar. The results from testing and comparing the three models showed that the only Markowitz model is valid to selecting the optimal investment portfolio. According the country-level data, the African investments have no place in the optimal portfolio, while it has a significant share according to the continental allocation. Keywords: Economic diversification, portfolio selection, evaluating diversification, the continental allocation. JEL Classification: G32, L25
Environmental Reporting of Global Oil Companies	84-99
Darliane Ribeiro Cunha and José M. Moneva
Abstract: The growing demand for environmental information from the stakeholders and the interest of companies in making their commitment to the environment visible have contributed to the increase of environmental reporting by companies, either voluntary or compulsory, through the annual reports and in other reports. The aim of this paper is to analyze the practices of disclosure environmental non-financial information of 40 companies from the global oil sector. The content-analysis research technique was used. The results show an increase in the publication of the sustainability reports of the global oil companies, and at the same time a low level of environmental non-financial information reported when analyzing the individual environmental indicators. The lack of standardization and non-mandatory reporting of environmental information limits the homogeneity and transparency of the information. It is verified that having the sustainability report with the use of standards such as ISAE 3000 and AA1000AS can provide greater reliability and evidence that these group of companies try to operate in accordance with market parameters. This procedure is another mechanism that a group of investigated global oil companies use to legitimize themselves. However, the study shows that the level of assurance of the sustainability report in most companies is low. Keywords: Environmental Reporting; Sustainability; Global Reporting Initiative; Sustainability assurance; Oil Sector. JEL Classification: G23, K32, O13,
Stock Market Volatility and National Elections: Evidence from Nigeria	100-110
Esosa Bob Osaze and Osazee Godwin Omorokunwa
Abstract: This study empirically investigates the existence of political cycle in stock market returns and volatilities in Nigeria from 1999 to 2015. Five (5) presidential elections are covered in this study. The regression analysis, event study and EGARCH model were adopted in this study. The findings showed that the build up to election creates more volatility than after the election. And that election in general determines volatility in the market. It is recommended that a better management of election cycles could enhance investor confidence, thereby increasing stability and resources within the securities markets, which is likely to enhance the production capacity, employment and create faster and sustainable socio-economic growth. Keywords: Presidential election, volatility, stock market, event studies and Nigeria. JEL Classification: D4, D53, D72