Article Information/
Abstract

Download

Original Article, B5
Rezaei N.
J. Appl. Bus. Fin. Res. 2(2): 41-49, 2013

 ABSTRACT: The purpose of financial reporting and accounting principles requires that the financial and accounting information meet the criteria to help investors, credit providers and other current and potential users of financial information. These qualitative characteristics of accounting information include: ‘relevance’; ‘reliability’; and ‘comparability’. The increased developments of financial information technology (FIT) such as emergence of the Internet and its applications have created new mechanisms in the financial services and led to timely financial services. The main goal of this paper examines the effects of FIT on each of the qualitative features of accounting information. Firstly the FIT systems and applications are considered and then their resulting information is examined. In order to determine the impact of FIT on quality features of accounting information, following a review of literature, research hypotheses were formed. To examine hypotheses a survey of financial and accounting managers, the internal auditors and the experienced accountants was conducted. Results of this study indicate that the use of FIT has created significant changes in the quality of financial and accounting information. This study finds that using FIT leads to more timely financial disclosures that demonstrate the increasing relevance of information. However, FIT could generate unreliable financial information, in spite of its advantages. Comparability of financial information within the company, trend analysis and examining changes in financial status is improved while comparability of information between companies weakens.
Keywords: Financial and Accounting Information, Accounting Information System, Financial Information Quality Characteristics.

Original Article, B6
Pakmaram A., Karamati Farhood A, Hossein Babaei Gh.
J. Appl. Bus. Fin. Res. 2(2): 50-58, 2013

ABSTRACT: One of the factors affecting the income is management’s correct and proper decision in relation to investments, including capital expenditures. If managers act as agent for the maximization of corporate value, it is expected to perform new capital expenditures that are made using high quality opportunities cause to increases the profit from stock price reactions to these expenditures. Forty-eight Tehran stock exchange listed companies between 2005 and 2010 have been selected as the sample of the research. In this study, the dependent variable is the ‍Cumulative Abnormal Return (CAR), and independent variables ar Unexpected Capital expenditure (UCAP), Growth Opportunities (P/B), Systematic Risk, The level of expected income and Firm size. The results about the effective factors on the main variables showed that the Cumulative market-adjusted return has significant and positive relation with unexpected capital expenditures, growth, risk, and expected income and firm size are not related to the cumulative abnormal returns.  In other words, size factor would not cause any change in the information content of capital expenditure. Another result of the study is that capital expenditure has an additional content in compared to current income.  
Keywords: ‍Cumulative Abnormal Return; Unexpected Capital expenditure; Growth Opportunities.

Original Article, B7
Heidarpoor F. and Mahdi Vafajoo M.
J. Appl. Bus. Fin. Res.. 2(2): 59-62, 2013

ABSTRACT: This study tries to answer the question of whether the companies' performance is effective on liability ratios or not. In this research we will study three dependent variables, i.e. long – term debts to total assets, debts to shareholders' equity, total debts to total assets and the Tobin Q Ratio as an independent variable. This research is based on annual observations in 2007–2011. Results show that if long – term debts to total assets is used as the capital structure benchmark, then there would be a direct and significant relation between Tobin Q and capital structure but the relation is weak. When debts to shareholders equity are used as the capital structure benchmark then there would be a direct and significant relation between Tobin Q and capital structure which is strong one. When total debts to total assets are used as the capital structure benchmark then there would be a positive and significant relation between Tobin Q and capital structure which is strong too. Hence after controlling the effects of quantitative variables, ROA and company growth results show that the effect of the Tobin Q Ratio on capital is intense and direct
Keywords: Companies' Performance, Capital Structure, Long – Term Debts to Total Assets, Debts to Shareholders' Equity, Total Debts to Total Assets

Original Article, B8
Mahmoodi A.
J. Appl. Bus. Fin. Res.. 2(2): 63-68, 2013

ABSTRACT: This study assesses the impact of ECO regional integration on labor market variables in ECO member countries. The role of regional trade agreements in rising of demand for endowments and their prices is the debate of many economists. Empirical literature does not address this issue for ECO. This paper uses global trade analysis project (GTAP) modeling approach to simulate cut of trade barriers between ECO members. Using a multi-region, multi-commodity GTAP modeling, simulation results show that, trade policy reform improved ECO members' economic performance, by means of higher endowment demand. 
Key words: ECO, Trade Liberalization, Labor Demand