University of Isfahan Journal of Asset Management and Financing 2383-1189 9 2 2021 06 22 Loan Interest Rate Uncertainty and Financing SMEs Listed in Tehran Stock Exchange Loan Interest Rate Uncertainty and Financing SMEs Listed in Tehran Stock Exchange 1 20 25055 10.22108/amf.2020.124509.1578 FA Davoud Safi Dastjerdi Ph.D. Candidate in economics, Mofid University 0000-0002-5780-0725 Komail Tayebi Professor of Economics, Department of Economics, Faculty of Administrative Sciences and Economics, University of Isfahan Nasser Elahi Associate Professor of Economic, Faculty of Economics, Mofid University Journal Article 2020 08 18 Abstract The role and importance of small and medium-sized enterprises is controversial not only in developing countries but also in developed countries. Internal and external surveys of small and medium-sized firms indicate that financing is one of the most important challenges. The interest rate uncertainty will also have a significant impact on the financing and investment of these companies. The interest rate uncertainty, which is considered as the cost of rent by the investor and the opportunity cost by the depositor, is one of the most important macroeconomic variables in policy making. Therefore, the present article seeks to explain, after explaining SME financing and its position in the Iranian economy, the role of the interest rate uncertainty on SME financing as a challenge. The main aspects of their development are analyzed using a regression analysis. The statistical population of the study is small and medium-sized companies whose financial data is published in the Comprehensive Database of All Listed Companies (CODAL) 70 selected SMEs during 2011-2017. Generaly, the results show a negative and significant effect of interest rate uncertainty on financing at small and medium enterprises in Iran. Based on the results of this study, it is suggested in order to improve the financing of small and medium enterprises in the country, by reducing the amplitude of fluctuations in the real interest rate, the policies based on reducing interest rate uncertainty should be adopted. Kewords: Facility Interest Rate, Financing, Iran, Small and Medium Enterprises, Uncertainty. JEL Classification: D81, G21, L25, E43. Introduction: The importance of small and medium-sized enterprises is controversial not only in developed countries but also in developing countries, usually because of their role in economic development. Researches on SMEs indicate that financing is one of their most important challenges. Both Financing and investing of these companies are affected by interest rate uncertainty. The interest rate, which is considered as the cost of rent by the investor and the opportunity cost by the lender, is mostly recognized as a crucial macroeconomic variable in policymaking. Because of the substantial share of the banking system in the financing of Iranian companies, the interest rate uncertainty can have a considerable impact on their financing and investment. Meanwhile, determination of the interest rate by the government, and asymmetric information between the bank and the applicants of bank facilities has caused uncertainty in this rate. Therefore, considering the effect of uncertainty on the intensity and impact of economic variables, the paper’s object is to explore the role of the interest rate uncertainty in the financing of selected Iranian SMEs. Method and Data: This paper has specified an econometric panel model for the financing of SMEs in Iran which includes a set of main and control variables. To estimate the model, the paper has used relevant data of the selected Iranian SMEs. The sample of the study includes 70 selected SMEs that their financial data is published in the Comprehensive Database of All Listed Companies (CODAL) during 2011-2017. In this study, the dependent variable is the firm financing (total amount of bank facilities per year for the firm) and the independent variables are interest rate uncertainty of bank facilities, inflation, gross domestic product, and a set of variables within the organization (internal variables). Indeed, an attempt has been made to measure the uncertainty indices of the bank interest rate to be used in the model estimation. Hence, this research has measured the uncertainty variable by a method which is called Geometric Brown Motion (GBM). In these methods, the uncertainty variable (interest rate uncertainty) is expected to grow at a constant rate, so the variance of future values of the variable increases during the time. Findings: Based on the results of the F-Leamer test, the Panel data method has been used to estimate the econometric financing model. Then we have used the Hausman statistic to test the selection between two models of Fixed Effects and Random Effects, in which the Fixed Effects model has been finally selected to estimate the model. Generally, the results show a negative and significant effect of interest rate uncertainty on the financing of Iranian SMEs. In general, the empirical findings of this study express the fact that interest rate uncertainty of bank facilities has had a negative and significant effect on the financing of selected Iranian SMEs and this indicates that an increase in interest rates of facilities can lead to some kind of investment risk, which ultimately increases the credit risk of firms and reduce the possibility of receiving future bank facilities to maintain their production capacity. Our findings imply that uncertainty in the Iranian economy has caused a reduction in their investment plans. However, to reach more stability in investment and production, Iranian companies and investors need to develop their business through benefiting from productive and certain bank facilities. Conclusion and discussion: According to the obtained empirical results, decision-makers and policy-makers of the financial sector should try to reduce the interest rate uncertainty of the bank’s loans to improve the Iranian SMEs' financing ability. More specifically, the main attempts can be based on reducing fluctuations in the real interest rate and asymmetric information in the Iranian banking facilities sector through the development of efficient financial tools and any reduction in the uncertainty of the bank’s interest rate. Indeed, incomplete or asymmetric information between the borrowers and the bank (lending institution) is one of the basic problems in the financing system that the consequences could be uncertainty increasing, limited access to future credits, an uncertainty between banks and SMEs in the formation of stable and long-term relationships, corruption and rents in the distribution of resources, and also it has a negative effect on the financing of SMEs by the banking system. Abstract The role and importance of small and medium-sized enterprises is controversial not only in developing countries but also in developed countries. Internal and external surveys of small and medium-sized firms indicate that financing is one of the most important challenges. The interest rate uncertainty will also have a significant impact on the financing and investment of these companies. The interest rate uncertainty, which is considered as the cost of rent by the investor and the opportunity cost by the depositor, is one of the most important macroeconomic variables in policy making. Therefore, the present article seeks to explain, after explaining SME financing and its position in the Iranian economy, the role of the interest rate uncertainty on SME financing as a challenge. The main aspects of their development are analyzed using a regression analysis. The statistical population of the study is small and medium-sized companies whose financial data is published in the Comprehensive Database of All Listed Companies (CODAL) 70 selected SMEs during 2011-2017. Generaly, the results show a negative and significant effect of interest rate uncertainty on financing at small and medium enterprises in Iran. Based on the results of this study, it is suggested in order to improve the financing of small and medium enterprises in the country, by reducing the amplitude of fluctuations in the real interest rate, the policies based on reducing interest rate uncertainty should be adopted. Kewords: Facility Interest Rate, Financing, Iran, Small and Medium Enterprises, Uncertainty. JEL Classification: D81, G21, L25, E43. Introduction: The importance of small and medium-sized enterprises is controversial not only in developed countries but also in developing countries, usually because of their role in economic development. Researches on SMEs indicate that financing is one of their most important challenges. Both Financing and investing of these companies are affected by interest rate uncertainty. The interest rate, which is considered as the cost of rent by the investor and the opportunity cost by the lender, is mostly recognized as a crucial macroeconomic variable in policymaking. Because of the substantial share of the banking system in the financing of Iranian companies, the interest rate uncertainty can have a considerable impact on their financing and investment. Meanwhile, determination of the interest rate by the government, and asymmetric information between the bank and the applicants of bank facilities has caused uncertainty in this rate. Therefore, considering the effect of uncertainty on the intensity and impact of economic variables, the paper’s object is to explore the role of the interest rate uncertainty in the financing of selected Iranian SMEs. Method and Data: This paper has specified an econometric panel model for the financing of SMEs in Iran which includes a set of main and control variables. To estimate the model, the paper has used relevant data of the selected Iranian SMEs. The sample of the study includes 70 selected SMEs that their financial data is published in the Comprehensive Database of All Listed Companies (CODAL) during 2011-2017. In this study, the dependent variable is the firm financing (total amount of bank facilities per year for the firm) and the independent variables are interest rate uncertainty of bank facilities, inflation, gross domestic product, and a set of variables within the organization (internal variables). Indeed, an attempt has been made to measure the uncertainty indices of the bank interest rate to be used in the model estimation. Hence, this research has measured the uncertainty variable by a method which is called Geometric Brown Motion (GBM). In these methods, the uncertainty variable (interest rate uncertainty) is expected to grow at a constant rate, so the variance of future values of the variable increases during the time. Findings: Based on the results of the F-Leamer test, the Panel data method has been used to estimate the econometric financing model. Then we have used the Hausman statistic to test the selection between two models of Fixed Effects and Random Effects, in which the Fixed Effects model has been finally selected to estimate the model. Generally, the results show a negative and significant effect of interest rate uncertainty on the financing of Iranian SMEs. In general, the empirical findings of this study express the fact that interest rate uncertainty of bank facilities has had a negative and significant effect on the financing of selected Iranian SMEs and this indicates that an increase in interest rates of facilities can lead to some kind of investment risk, which ultimately increases the credit risk of firms and reduce the possibility of receiving future bank facilities to maintain their production capacity. Our findings imply that uncertainty in the Iranian economy has caused a reduction in their investment plans. However, to reach more stability in investment and production, Iranian companies and investors need to develop their business through benefiting from productive and certain bank facilities. Conclusion and discussion: According to the obtained empirical results, decision-makers and policy-makers of the financial sector should try to reduce the interest rate uncertainty of the bank’s loans to improve the Iranian SMEs' financing ability. More specifically, the main attempts can be based on reducing fluctuations in the real interest rate and asymmetric information in the Iranian banking facilities sector through the development of efficient financial tools and any reduction in the uncertainty of the bank’s interest rate. Indeed, incomplete or asymmetric information between the borrowers and the bank (lending institution) is one of the basic problems in the financing system that the consequences could be uncertainty increasing, limited access to future credits, an uncertainty between banks and SMEs in the formation of stable and long-term relationships, corruption and rents in the distribution of resources, and also it has a negative effect on the financing of SMEs by the banking system.

https://amf.ui.ac.ir/article_25055_bc1d0f8785f2adb1cafbe455e4a9d789.pdf

University of Isfahan Journal of Asset Management and Financing 2383-1189 9 2 2021 06 22 The Value Content of Different Free Cash Flow Models in Tehran Stock Exchange with Emphasis on Industry Type The Value Content of Different Free Cash Flow Models in Tehran Stock Exchange with Emphasis on Industry Type 21 46 25530 10.22108/amf.2021.124885.1588 FA Javad Hosseini Ph.D. Candidate, Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran Rasoul Baradaran Hassan Zadeh Associate Professor of Accounting , Tabriz Branch of Islamic Azad University Department of Management Economic and Accounting , Tabriz - Iran Ahmad Mohammady Assistant Prof., Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran Mahdi Zeynali 4. Assistant Prof., Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran Journal Article 2020 10 11 Abstract The purpose of this study is to identify a certain criterion of free cash flow that has the highest value content. To achieve this purpose, using a multiple regression model, 11 commonly used free cash flow models were tested to examine the value content, once in a sample of 180 firms listed in Tehran Stock Exchange during 2009 to 2019, and once separately in manufacturing industries with high asset ratios. According to the results, 7 models out of 11 different models of free cash flow have valuable content and confirm the research hypothesis that free cash flow has valuable content. Examining the results, it can be seen that Lehn and Poulsen's (1989) model has the highest value content in the total level of listed companies and separately in industries with higher asset ratios such as base metals, automotive, chemical, petroleum, and pharmaceutical products Kewords: Free cash flow, Changes in stock pric, Value content, Industry Introduction: Because Jensen (1986)'s definition of free cash flow has non-objective (subjective) components; it allows analysts, researchers, and managers to use their personal discretion in calculating a company's free cash flow. Thus, as long as a standardized measure of free cash flow is agreed upon by academics and professionals, the free cash flow seems to be more appropriate for analysis, discussion, and decision-making within the firm rather than for comparison between firms (Bhandari & Adams, 2017). Therefore, empirical studies of the value content of different definitions of free cash flow is of great importance. If free cash flow has value content, it could help investors make better decisions in their investments, and if it does not have valuable content, then investors would not need to waste their time considering this criterion in their decision-making process. The study of the value content of different definitions and criteria of free cash flow is to select and determine a specific criterion of free cash flow so that it can be more relevant for users of accounting information to predict stock price changes. In addition, identifying a certain definition of free cash flow that has the most valuable content can have major implications for accounting standard makers. The fact that all companies within a particular industry use a single method and definition to calculate free cash flow increases the comparability of accounting information among companies in that industry. According to what has been said, the purpose of this study is to investigate the value content of different models of free cash flow in Iranian companies. Method and Data: The research area is the companies listed on the Tehran Stock Exchange and the period is from 2009 to 2019. The purpose of this study is to measure the value content of each model of free cash flow and select a model of free cash flow with the most valuable content in the Iranian capital market as a whole and then separately in different industries. The widely used extractive models include: 1) Lehn and Poulsen (1989), 2) Copland et al. (1991), 3) Richardson (2006), 4) Verdi (2006), 5) Cornett et al. (2012), 6) Kieso et al. 2013), 7) Ross et al. (2013), 8) Palepu & Healy (2013), 9) Brealy et al. (2015), 10) Brigham and Houston (2016), and 11) Bhandari & Adams (2017). After extracting the widely used free cash flow patterns, the value content of each pattern according to Maksy's (2016) research is fitted using the share price changes in a regression model. Findings: The results show that the Lehn and Poulsen (1989) model has the highest value content in the total level of listed companies and separately in high asset (higher company`s asset to total market asset ratio) industries such as base metals, automotive, chemical, petroleum, and pharmaceutical products. This model is one of the oldest free cash flow calculation models and is measured based on the operating profit, which is a very important item by investors and other users and market stakeholders. That is why it is better known by the market and its value content has been proven in numerous studies. Also, this model is based on accruals and dividends, the value of which has been proven many times in various studies in the Iranian market; Therefore, the level of general knowledge of the Iranian market about the model of Lehn and Poulsen (1989) is probably explained based on such variables. Another reason for the higher value content of this model is the ease of its calculation by participants in the capital market because they can easily calculate the amount of free cash flow by examining the income statement of companies and direct their investment decisions accordingly. Conclusion and Results: According to the results, free cash flow patterns have value content, but these patterns have different value contents. Users of financial information can use the results of this study to better predict stock price changes. Since the main purpose of financial reporting is to provide useful information for decision-making, the results of the present study could improve the decision-making of users of financial statements. Also, using the results of this research could increase the comparability of companies (in the stock market and within the industry) and increase the quality of financial reporting. Abstract The purpose of this study is to identify a certain criterion of free cash flow that has the highest value content. To achieve this purpose, using a multiple regression model, 11 commonly used free cash flow models were tested to examine the value content, once in a sample of 180 firms listed in Tehran Stock Exchange during 2009 to 2019, and once separately in manufacturing industries with high asset ratios. According to the results, 7 models out of 11 different models of free cash flow have valuable content and confirm the research hypothesis that free cash flow has valuable content. Examining the results, it can be seen that Lehn and Poulsen's (1989) model has the highest value content in the total level of listed companies and separately in industries with higher asset ratios such as base metals, automotive, chemical, petroleum, and pharmaceutical products Kewords: Free cash flow, Changes in stock pric, Value content, Industry Introduction: Because Jensen (1986)'s definition of free cash flow has non-objective (subjective) components; it allows analysts, researchers, and managers to use their personal discretion in calculating a company's free cash flow. Thus, as long as a standardized measure of free cash flow is agreed upon by academics and professionals, the free cash flow seems to be more appropriate for analysis, discussion, and decision-making within the firm rather than for comparison between firms (Bhandari & Adams, 2017). Therefore, empirical studies of the value content of different definitions of free cash flow is of great importance. If free cash flow has value content, it could help investors make better decisions in their investments, and if it does not have valuable content, then investors would not need to waste their time considering this criterion in their decision-making process. The study of the value content of different definitions and criteria of free cash flow is to select and determine a specific criterion of free cash flow so that it can be more relevant for users of accounting information to predict stock price changes. In addition, identifying a certain definition of free cash flow that has the most valuable content can have major implications for accounting standard makers. The fact that all companies within a particular industry use a single method and definition to calculate free cash flow increases the comparability of accounting information among companies in that industry. According to what has been said, the purpose of this study is to investigate the value content of different models of free cash flow in Iranian companies. Method and Data: The research area is the companies listed on the Tehran Stock Exchange and the period is from 2009 to 2019. The purpose of this study is to measure the value content of each model of free cash flow and select a model of free cash flow with the most valuable content in the Iranian capital market as a whole and then separately in different industries. The widely used extractive models include: 1) Lehn and Poulsen (1989), 2) Copland et al. (1991), 3) Richardson (2006), 4) Verdi (2006), 5) Cornett et al. (2012), 6) Kieso et al. 2013), 7) Ross et al. (2013), 8) Palepu & Healy (2013), 9) Brealy et al. (2015), 10) Brigham and Houston (2016), and 11) Bhandari & Adams (2017). After extracting the widely used free cash flow patterns, the value content of each pattern according to Maksy's (2016) research is fitted using the share price changes in a regression model. Findings: The results show that the Lehn and Poulsen (1989) model has the highest value content in the total level of listed companies and separately in high asset (higher company`s asset to total market asset ratio) industries such as base metals, automotive, chemical, petroleum, and pharmaceutical products. This model is one of the oldest free cash flow calculation models and is measured based on the operating profit, which is a very important item by investors and other users and market stakeholders. That is why it is better known by the market and its value content has been proven in numerous studies. Also, this model is based on accruals and dividends, the value of which has been proven many times in various studies in the Iranian market; Therefore, the level of general knowledge of the Iranian market about the model of Lehn and Poulsen (1989) is probably explained based on such variables. Another reason for the higher value content of this model is the ease of its calculation by participants in the capital market because they can easily calculate the amount of free cash flow by examining the income statement of companies and direct their investment decisions accordingly. Conclusion and Results: According to the results, free cash flow patterns have value content, but these patterns have different value contents. Users of financial information can use the results of this study to better predict stock price changes. Since the main purpose of financial reporting is to provide useful information for decision-making, the results of the present study could improve the decision-making of users of financial statements. Also, using the results of this research could increase the comparability of companies (in the stock market and within the industry) and increase the quality of financial reporting.

https://amf.ui.ac.ir/article_25530_8fa25b8abf1c332832b0ca145eff5a2c.pdf

University of Isfahan Journal of Asset Management and Financing 2383-1189 9 2 2021 06 22 The effect of Intangible Assets on the Firm’s Financial Performance and Mediating Role of the Cost Stickiness in Tehran Stock Exchange The effect of Intangible Assets on the Firm’s Financial Performance and Mediating Role of the Cost Stickiness in Tehran Stock Exchange 47 76 25531 10.22108/amf.2021.118666.1453 FA Mohammad Namazi Prof. of Accounting, Faculty of Social Sciences, Economics and Management Shiraz University, Shiraz, Iran. Yasser Shakeri MSc. of Accounting, Faculty of Social Sciences, Economics and Management Shiraz University, Shiraz, Iran. Journal Article 2019 10 17 Abstract The purpose of this study is to investigate the mediating role of the cost stickiness in the relationship between intangible assets and the financial performance of companies listed on the Tehran Stock Exchange. One hundred and eighty four (184) companies in the period from 2007 to 2016 are analyzed through the SEM-PLS method. The research models and hypotheses are first implemented and reviewed by year and once in general by industry. Finally, to evaluate the significance of the effect of the mediating variable, the Sobel test is used. In order to determine the strength of its effect, we applied VAF statistics. While our findings confirm that intangible assets have a positive effect on the financial performance of companies only in 2010, this relationship is significant in almost all industries, in which the automotive, parts, and machinery industry witnesses the most influential effect, compared to other industries. In addition, costs stickiness as a mediating variable in the relationship between intangible assets and financial performance is not significant in any of the years. However, the mediating effect of cost stickiness in the whole period by industry is significant and 59.83% of the effect of intangible assets on companies' financial performance is explained indirectly by the cost stickiness. Finally, the effect of cost stickiness on the financial performance of companies is significant in all industries except for the Metallic Mineral industry. Keywords: Cost stickiness, Firm performance, Intangible assets, Structural equation modeling. Introduction: In a knowledge-based economy, intangible assets play an important role in improving the financial performance and success of a company in achieving its goals, as intangible assets are the source of wealth and growth (Lev, 2001). However, there is no comprehensive accepted model that can yield the concept of measuring intangible assets and their impact on the company's financial operations and comparing them across different industries (Chen, Lu, & Sougiannis, 2012). On the other hand, in the recent financial literature, the issue of "cost stickiness" has recently been raised. The phenomenon of cost stickiness implies that the increase in costs for a specific increase in the level of activity is greater than its decrease for the same level of decrease in the activity (Namazi, & Davanipour, 2010; Khajavi, Ghadiriyan, & Sadeghzadeh, 2017). Veniriz, Naum and Valizmaz (2015) indicate that resource allocation decisions regarding the development of intangible assets lead to cost stickiness. Thus, the new financial literature shows that intangible assets affect cost stickiness. Also, the phenomenon of cost stickiness has a significant impact on the performance of companies (Anderson, Banker, & Janakiraman, 2003; Calleja, Steliaros, & Thomas, 2006). Therefore, the hypothesis of the present study, based on the literature on mediator variables (Baron, & Kenny, 1986), is that the relationship between intangible assets and corporate financial performance is an indirect relationship in which cost stickiness plays a mediating role. This relationship is studied for different industries in Tehran Stock Exchange. The importance of this research is that the present study provides clear empirical evidence in the area of cost stickiness, value of intangible assets and its relationship with the financial performance of Tehran Stock Exchange companies. Moreover, considering the stickiness of costs and intangible assets, this research provides an opportunity to better understand the behavior of costs. Method and Data: One hundred and eighty four (184) companies in the period from 2007 to 2016 (1840 years-company) are analyzed through structural equations, using the partial least squares method. The research models and hypotheses are first implemented and reviewed by year and once in general by industry. Finally, to evaluate the significance of the effect of the mediating variable, the Sobel test is used, and to determine the strength of its effect, VAF statistics is used. The main dependent variable in the present study includes five groups of financial ratios (liquidity, profitability, performance, return and market ratios). Intangible assets are the main independent variables of the present study. Following the mentioned theoretical foundations and background, intangible assets can be generally divided into two groups: registered intangible assets and unregistered intangible assets, which are valued by using the ratio of intangible items of ratio (Q-Tobin) and size indicators (economic value added and market surplus value to book value) (Namazi, & Mousavinejad, 2016). In the mediator model, it is assumed that the independent variable first affects the mediating variable and then the mediating variable affects the dependent variable (Baron, & Kenny, 1986). Mediating variables were divided into four categories: cost of goods sold, general, administrative and sales costs, operating costs, the size of the stickiness, and the strength of the stickiness. Findings: Pattern fitting is performed in the following three general sections: a) Measurement pattern fitting (including reliability, convergent validity, and divergent validity); B) Structural part fit (including consideration of significance coefficients, determination coefficient, and predictive power of the model); and c) Overall fit of the model (including two parts of general measurement fit and structural part, the general GOF criterion indicates the suitability of the whole model). Table 6 shows the statistics of structural and general part of the model. Table (6) Statistics of Structural and General Part of the Model Period Statistics 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 R2 (67/0<) 272/0 156/0 091/0 237/0 275/0 104/0 437/0 625/0 084/0 145/0 Q2 (35/0<) 213/0 209/0 192/0 227/0 173/0 144/0 104/0 05/0 66/0 104/0 GOF (36/0<) 402/0 411/0 416/0 426/0 408/0 415/0 432/0 416/0 433/0 408/0 The value of the Z test statistic obtained from the Sobel test is equal to 2.813812. Thus, it can be concluded that at a 95% confidence level, the mediating effect of the cost stickiness variable on the relationship between intangible assets and financial performance in Tehran Stock Exchange companies is significant. Besides, the value of the VAF statistic is equal to 0.59834, which means that 59.83% of the effect of total intangible assets on the financial performance of companies can be attributed to cost stickiness. Conclusion and discussion: The impact of intangible assets on the financial performance of companies can be direct or indirect. The direct effect depends on the type of analysis. The findings of this study imply that if the analysis is done annually, this effect is significant only in 2010. Meanwhile, if this effect is done at the level of different industries of the stock market, it is significant for almost all industries. In the indirect effect, when cost stickiness is considered as a mediating variable, the relationship between intangible assets and companies' financial performance is not significant in any of the years under review. But at the industry level, it is significant and 59.83% of the effect of total intangible assets on the financial performance of companies is explained by the variable of cost stickiness. Finally, the effect of cost stickiness on the financial performance of companies in almost all industries is significant. Abstract The purpose of this study is to investigate the mediating role of the cost stickiness in the relationship between intangible assets and the financial performance of companies listed on the Tehran Stock Exchange. One hundred and eighty four (184) companies in the period from 2007 to 2016 are analyzed through the SEM-PLS method. The research models and hypotheses are first implemented and reviewed by year and once in general by industry. Finally, to evaluate the significance of the effect of the mediating variable, the Sobel test is used. In order to determine the strength of its effect, we applied VAF statistics. While our findings confirm that intangible assets have a positive effect on the financial performance of companies only in 2010, this relationship is significant in almost all industries, in which the automotive, parts, and machinery industry witnesses the most influential effect, compared to other industries. In addition, costs stickiness as a mediating variable in the relationship between intangible assets and financial performance is not significant in any of the years. However, the mediating effect of cost stickiness in the whole period by industry is significant and 59.83% of the effect of intangible assets on companies' financial performance is explained indirectly by the cost stickiness. Finally, the effect of cost stickiness on the financial performance of companies is significant in all industries except for the Metallic Mineral industry. Keywords: Cost stickiness, Firm performance, Intangible assets, Structural equation modeling. Introduction: In a knowledge-based economy, intangible assets play an important role in improving the financial performance and success of a company in achieving its goals, as intangible assets are the source of wealth and growth (Lev, 2001). However, there is no comprehensive accepted model that can yield the concept of measuring intangible assets and their impact on the company's financial operations and comparing them across different industries (Chen, Lu, & Sougiannis, 2012). On the other hand, in the recent financial literature, the issue of "cost stickiness" has recently been raised. The phenomenon of cost stickiness implies that the increase in costs for a specific increase in the level of activity is greater than its decrease for the same level of decrease in the activity (Namazi, & Davanipour, 2010; Khajavi, Ghadiriyan, & Sadeghzadeh, 2017). Veniriz, Naum and Valizmaz (2015) indicate that resource allocation decisions regarding the development of intangible assets lead to cost stickiness. Thus, the new financial literature shows that intangible assets affect cost stickiness. Also, the phenomenon of cost stickiness has a significant impact on the performance of companies (Anderson, Banker, & Janakiraman, 2003; Calleja, Steliaros, & Thomas, 2006). Therefore, the hypothesis of the present study, based on the literature on mediator variables (Baron, & Kenny, 1986), is that the relationship between intangible assets and corporate financial performance is an indirect relationship in which cost stickiness plays a mediating role. This relationship is studied for different industries in Tehran Stock Exchange. The importance of this research is that the present study provides clear empirical evidence in the area of cost stickiness, value of intangible assets and its relationship with the financial performance of Tehran Stock Exchange companies. Moreover, considering the stickiness of costs and intangible assets, this research provides an opportunity to better understand the behavior of costs. Method and Data: One hundred and eighty four (184) companies in the period from 2007 to 2016 (1840 years-company) are analyzed through structural equations, using the partial least squares method. The research models and hypotheses are first implemented and reviewed by year and once in general by industry. Finally, to evaluate the significance of the effect of the mediating variable, the Sobel test is used, and to determine the strength of its effect, VAF statistics is used. The main dependent variable in the present study includes five groups of financial ratios (liquidity, profitability, performance, return and market ratios). Intangible assets are the main independent variables of the present study. Following the mentioned theoretical foundations and background, intangible assets can be generally divided into two groups: registered intangible assets and unregistered intangible assets, which are valued by using the ratio of intangible items of ratio (Q-Tobin) and size indicators (economic value added and market surplus value to book value) (Namazi, & Mousavinejad, 2016). In the mediator model, it is assumed that the independent variable first affects the mediating variable and then the mediating variable affects the dependent variable (Baron, & Kenny, 1986). Mediating variables were divided into four categories: cost of goods sold, general, administrative and sales costs, operating costs, the size of the stickiness, and the strength of the stickiness. Findings: Pattern fitting is performed in the following three general sections: a) Measurement pattern fitting (including reliability, convergent validity, and divergent validity); B) Structural part fit (including consideration of significance coefficients, determination coefficient, and predictive power of the model); and c) Overall fit of the model (including two parts of general measurement fit and structural part, the general GOF criterion indicates the suitability of the whole model). Table 6 shows the statistics of structural and general part of the model. Table (6) Statistics of Structural and General Part of the Model Period Statistics 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 R2 (67/0<) 272/0 156/0 091/0 237/0 275/0 104/0 437/0 625/0 084/0 145/0 Q2 (35/0<) 213/0 209/0 192/0 227/0 173/0 144/0 104/0 05/0 66/0 104/0 GOF (36/0<) 402/0 411/0 416/0 426/0 408/0 415/0 432/0 416/0 433/0 408/0 The value of the Z test statistic obtained from the Sobel test is equal to 2.813812. Thus, it can be concluded that at a 95% confidence level, the mediating effect of the cost stickiness variable on the relationship between intangible assets and financial performance in Tehran Stock Exchange companies is significant. Besides, the value of the VAF statistic is equal to 0.59834, which means that 59.83% of the effect of total intangible assets on the financial performance of companies can be attributed to cost stickiness. Conclusion and discussion: The impact of intangible assets on the financial performance of companies can be direct or indirect. The direct effect depends on the type of analysis. The findings of this study imply that if the analysis is done annually, this effect is significant only in 2010. Meanwhile, if this effect is done at the level of different industries of the stock market, it is significant for almost all industries. In the indirect effect, when cost stickiness is considered as a mediating variable, the relationship between intangible assets and companies' financial performance is not significant in any of the years under review. But at the industry level, it is significant and 59.83% of the effect of total intangible assets on the financial performance of companies is explained by the variable of cost stickiness. Finally, the effect of cost stickiness on the financial performance of companies in almost all industries is significant.

https://amf.ui.ac.ir/article_25531_a7be4fcc960e2088de11a3f7b3b30683.pdf

University of Isfahan Journal of Asset Management and Financing 2383-1189 9 2 2021 06 22 dentifying the Factors Affecting the Financial Risks of Companies Using the Structural Equations Approach dentifying the Factors Affecting the Financial Risks of Companies Using the Structural Equations Approach 77 98 25954 10.22108/amf.2021.127996.1647 FA Saman Tavakoli Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran Ali Ashtab Assistant Professor, Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran Journal Article 2021 04 07 The purpose of this study is to investigate the mediating role of the cost stickiness in the relationship between intangible assets and the purpose of this paper was to identify the factors affecting the financial risks of companies by considering the effects of fluctuations of those factors and selecting the selected variables. In this study, the information of 145 listed companies at Tehran Stock Exchange during 2011-2020 was used. Also, to analyze the findings, the structural equations modeling approach and 31 variables, including financial ratio, size factor, company growth, and competitive strategy, were utilized together and simultaneously. The results showed that 58.6% of financial risks were explained by fluctuations in the research variables. Also, by using the load factor values and beta coefficient test, the accrued financial ratios, such as net profit margin, operating profit margin, asset turnover period, accumulated profit-to-asset ratio, current ratio, and cash ratio, as well as cash financial ratios, including the ratio of operating cash flow to total assets and the ratio of operating cash flow to long-term liabilities, were found to be of particular importance. In addition, by using the t-test, the effects of financial ratios, firm size, growth factors, and competitive strategies on financial risks were observed to be significant. The purpose of this study is to investigate the mediating role of the cost stickiness in the relationship between intangible assets and the purpose of this paper was to identify the factors affecting the financial risks of companies by considering the effects of fluctuations of those factors and selecting the selected variables. In this study, the information of 145 listed companies at Tehran Stock Exchange during 2011-2020 was used. Also, to analyze the findings, the structural equations modeling approach and 31 variables, including financial ratio, size factor, company growth, and competitive strategy, were utilized together and simultaneously. The results showed that 58.6% of financial risks were explained by fluctuations in the research variables. Also, by using the load factor values and beta coefficient test, the accrued financial ratios, such as net profit margin, operating profit margin, asset turnover period, accumulated profit-to-asset ratio, current ratio, and cash ratio, as well as cash financial ratios, including the ratio of operating cash flow to total assets and the ratio of operating cash flow to long-term liabilities, were found to be of particular importance. In addition, by using the t-test, the effects of financial ratios, firm size, growth factors, and competitive strategies on financial risks were observed to be significant.

https://amf.ui.ac.ir/article_25954_2d2ab7a55655f46ce1435ca6baec92a9.pdf

University of Isfahan Journal of Asset Management and Financing 2383-1189 9 2 2021 06 22 The Impacts of Non-Financial Information and Integrated Reporting Information on Decision-Making: Investment Behavior with an Empirical Approach The Impacts of Non-Financial Information and Integrated Reporting Information on Decision-Making: Investment Behavior with an Empirical Approach 99 124 26070 10.22108/amf.2021.129706.1681 FA Yahya Kamyabi Associate Professor, Department of Accounting, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran Bahram Mohseni Maleki Assistant Professor, Department of Accounting, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran Amir Javady Nia Ph. D. Candidate, Department of Accounting, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran Journal Article 2021 08 31 Changing the information needs of the users of accounting information has altered the forms and information contents of accounting reports. However, changes in the accounting reporting system, regardless of its effects, are risky. Therefore, the purpose of this study was to investigate the impacts of the dissemination of non-financial information and the use of an integrated reporting system on investor decision-making. The required data were collected through a questionnaire designed by 3 scenarios for 3 similar groups. In the 1st, 2nd, and 3rd scenarios, only financial information, simultaneous use of financial and non-financial information, and information of an integrated reporting system, were presented, respectively. Wilcoxon and Mann-Vinty tests were used to test the research hypotheses. The results showed that decision-making based on financial information led to a decision that maximized the shareholders’ interests, while the investors would tend to make sound decisions if non-financial information was also provided. Finally, disseminations of financial and non-financial information in the columns were no different from that of the information of the integrated reporting system. Changing the information needs of the users of accounting information has altered the forms and information contents of accounting reports. However, changes in the accounting reporting system, regardless of its effects, are risky. Therefore, the purpose of this study was to investigate the impacts of the dissemination of non-financial information and the use of an integrated reporting system on investor decision-making. The required data were collected through a questionnaire designed by 3 scenarios for 3 similar groups. In the 1st, 2nd, and 3rd scenarios, only financial information, simultaneous use of financial and non-financial information, and information of an integrated reporting system, were presented, respectively. Wilcoxon and Mann-Vinty tests were used to test the research hypotheses. The results showed that decision-making based on financial information led to a decision that maximized the shareholders’ interests, while the investors would tend to make sound decisions if non-financial information was also provided. Finally, disseminations of financial and non-financial information in the columns were no different from that of the information of the integrated reporting system.

https://amf.ui.ac.ir/article_26070_beec11fd13eeae9ea4e565d1ba1b83ae.pdf

University of Isfahan Journal of Asset Management and Financing 2383-1189 9 2 2021 06 22 Investigating the Factors Affecting the Value of Cash held in the Companies Listed in Tehran Stock Exchange under Conditions of Uncertainty Investigating the Factors Affecting the Value of Cash held in the Companies Listed in Tehran Stock Exchange under Conditions of Uncertainty 125 148 25961 10.22108/amf.2021.124916.1583 FA Shahnaz Mashayekh Associate Professor, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran Sara Razani PhD. Student in Accounting, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran Journal Article 2020 09 22 Abstract Objective: This study assessed the factors affecting the value of cash held in the companies listed in Tehran Stock Exchange under conditions of uncertainty. The purpose of this study was to evaluate whether cash holding is valuable in terms of uncertainty and what effects financial problems, agency costs, and growth rate have on the relationships between these variables. The results of this research can provide investors with information about the cash policy maintained for creating value. Method: In this research, 168 companies were listed in Tehran Stock Exchange during the period of 2011-2018. To test the hypotheses, the models of Falkander et al. (2006), Dietmar and Mart Smith (2007), and Dennis and Sibika (2010) were used. Findings: The results of testing the hypotheses showed that there was an effect between uncertainty and the value of cash held by the companies listed on Tehran Stock Exchange. The relationship between these two variables was strengthened, especially under conditions of uncertainty in the presence of agency problems and financing limitations. For every rial the companies held in cash, they got a value of more than 1 rial. However, investment opportunities had no effects on this relationship. Innovation: A review of the literature revealed that no research had been conducted in the field of cash value and there had been no restrictions on financing and agency costs so far. In this regard, new statistical models were used in this study. Introduction Increased competition and drastic technological changes in the business arena have exposed businesses to various operational and commercial risks. In such circumstances, businesses do not have sufficient knowledge and information about different possibilities of future decisions (Williams, 2015). Business executives are taking steps to reduce or eliminate the risks of uncertainty in their business environments. One of the most important steps is the cash storage. Cash as one of the most important components of working capital has always been of special interest to managers and investors. Keeping cash in the company provides such advantages as the ability to do business and deal with potential events, as well as flexibility to finance from internal sources and avoid wasting investment opportunities when limited in external financing (Batum, 2004). Method and Data In this study, the models of Falkander et al. (2006), Dietmar and Mart Smith (2007), and Dennis and Sibika (2010) were used to test the hypotheses. Four equations were applied to conduct the research as follows: Model (1): Ri,t−Rp,t=β0+β1∆Cashi,t+β2 High uncertainty×∆Cashi,t+βCONTROLSCONTROLS+ε i,t Model (2): Ri,t–Rp,t=β0+β1∆Cash i,t+β2 High uncertainty×∆Cashi,t+β3Constrained×∆Cashi,t+β4 High uncertainty×Constrained×∆Cashi,t+βCONTROLSCONTROLs Model (3): Ri,t–R p,t=β0+β1∆Cashi,t+β2 High uncertainty×∆Cashi,t+β3×less agency conflicts×∆Cash i,t+β4High uncertainty×less agency conflicts×∆CashI,T+βCONTROLSCONTROLS+εi,: Model (4): RI,T −Rp,t=β0+β1∆Cashi,t+β2High uncertainty×∆Cashi,t+β3 More investment opportunities×∆Cashi,t+β4High uncertainty×More investment opportunities×∆Cashi,t+βCONTROLSCONTROLS+εi,t Findings The results of the test model of the 1st hypothesis showed that the estimated coefficient of Variable HIGH_UNCERTAINTY * ΔCASH was more than zero (1.33) and greater than 1. Also, at the error level of 1%, a positive and significant relationship between this variable and the cash value was confirmed. Therefore, the 1st hypothesis of the research was corroborated. The test model results of the 2nd hypothesis revealed that the estimation coefficient of Variable HIGH_UNCERTAINTY * CONSTRAINED * ΔCASH was positive (1.7) and greater than 1. It was believed that the significance level (P-value) of the relevant t-statistic was less than 5% (0.014), so the 2nd hypothesis of the research was confirmed .The test model results of the 3rd hypothesis indicated that the estimation coefficient of Variable UNCERTAINTY * LESSAGENCYCONFLICTS * ΔCASH was positive (17/14) and greater than 1, which meant that for every rial of cash held in the companies with high uncertainty and lower agency costs, the value was more than 1 rial. The test model results of the 4th hypothesis demonstrated that the estimation coefficient of Variable HIGH UNCERTAINTY * MORE INVESTMENT OPPORTUNITIES * ΔCASH was positive (0.36) and the significance level (P-value) of t-statistic was more than 5% (0.764) so that the 4th hypothesis of the research was not approved at the error level of 5%. Conclusion and discussion The results of the 1st hypothesis showed that by increasing one rial in cash in the conditions of uncertainty, investors valued it more than 1 rial. This result was in accordance with the theory principles and research of Jung et al. (2017). The results of the 2nd hypothesis displayed that the company was facing financial constraints, while the value of cash holding was significantly related to uncertainty. This result was consistent with the theoretical and research foundations of Jung et al. (2017) and Chakrat Barati (2017). The results of the 3rd hypothesis showed that with an increase of 1 rial in cash, the investors would value it more than 1 rial in case of uncertainty if the company faced agency problems, thus the 3rd hypothesis of the research was confirmed, which was in accordance with theoretical principles and the findings of the research conducted by Jung et al. (2017). The results of the 4th hypothesis revealed that cash holding value had no significant relationship with uncertainty so that the 4th hypothesis was rejected, which was contrary to the theoretical foundations and research results of Khan et al. (2019) and Jung et al. (2017). Abstract Objective: This study assessed the factors affecting the value of cash held in the companies listed in Tehran Stock Exchange under conditions of uncertainty. The purpose of this study was to evaluate whether cash holding is valuable in terms of uncertainty and what effects financial problems, agency costs, and growth rate have on the relationships between these variables. The results of this research can provide investors with information about the cash policy maintained for creating value. Method: In this research, 168 companies were listed in Tehran Stock Exchange during the period of 2011-2018. To test the hypotheses, the models of Falkander et al. (2006), Dietmar and Mart Smith (2007), and Dennis and Sibika (2010) were used. Findings: The results of testing the hypotheses showed that there was an effect between uncertainty and the value of cash held by the companies listed on Tehran Stock Exchange. The relationship between these two variables was strengthened, especially under conditions of uncertainty in the presence of agency problems and financing limitations. For every rial the companies held in cash, they got a value of more than 1 rial. However, investment opportunities had no effects on this relationship. Innovation: A review of the literature revealed that no research had been conducted in the field of cash value and there had been no restrictions on financing and agency costs so far. In this regard, new statistical models were used in this study. Introduction Increased competition and drastic technological changes in the business arena have exposed businesses to various operational and commercial risks. In such circumstances, businesses do not have sufficient knowledge and information about different possibilities of future decisions (Williams, 2015). Business executives are taking steps to reduce or eliminate the risks of uncertainty in their business environments. One of the most important steps is the cash storage. Cash as one of the most important components of working capital has always been of special interest to managers and investors. Keeping cash in the company provides such advantages as the ability to do business and deal with potential events, as well as flexibility to finance from internal sources and avoid wasting investment opportunities when limited in external financing (Batum, 2004). Method and Data In this study, the models of Falkander et al. (2006), Dietmar and Mart Smith (2007), and Dennis and Sibika (2010) were used to test the hypotheses. Four equations were applied to conduct the research as follows: Model (1): Ri,t−Rp,t=β0+β1∆Cashi,t+β2 High uncertainty×∆Cashi,t+βCONTROLSCONTROLS+ε i,t Model (2): Ri,t–Rp,t=β0+β1∆Cash i,t+β2 High uncertainty×∆Cashi,t+β3Constrained×∆Cashi,t+β4 High uncertainty×Constrained×∆Cashi,t+βCONTROLSCONTROLs Model (3): Ri,t–R p,t=β0+β1∆Cashi,t+β2 High uncertainty×∆Cashi,t+β3×less agency conflicts×∆Cash i,t+β4High uncertainty×less agency conflicts×∆CashI,T+βCONTROLSCONTROLS+εi,: Model (4): RI,T −Rp,t=β0+β1∆Cashi,t+β2High uncertainty×∆Cashi,t+β3 More investment opportunities×∆Cashi,t+β4High uncertainty×More investment opportunities×∆Cashi,t+βCONTROLSCONTROLS+εi,t Findings The results of the test model of the 1st hypothesis showed that the estimated coefficient of Variable HIGH_UNCERTAINTY * ΔCASH was more than zero (1.33) and greater than 1. Also, at the error level of 1%, a positive and significant relationship between this variable and the cash value was confirmed. Therefore, the 1st hypothesis of the research was corroborated. The test model results of the 2nd hypothesis revealed that the estimation coefficient of Variable HIGH_UNCERTAINTY * CONSTRAINED * ΔCASH was positive (1.7) and greater than 1. It was believed that the significance level (P-value) of the relevant t-statistic was less than 5% (0.014), so the 2nd hypothesis of the research was confirmed .The test model results of the 3rd hypothesis indicated that the estimation coefficient of Variable UNCERTAINTY * LESSAGENCYCONFLICTS * ΔCASH was positive (17/14) and greater than 1, which meant that for every rial of cash held in the companies with high uncertainty and lower agency costs, the value was more than 1 rial. The test model results of the 4th hypothesis demonstrated that the estimation coefficient of Variable HIGH UNCERTAINTY * MORE INVESTMENT OPPORTUNITIES * ΔCASH was positive (0.36) and the significance level (P-value) of t-statistic was more than 5% (0.764) so that the 4th hypothesis of the research was not approved at the error level of 5%. Conclusion and discussion The results of the 1st hypothesis showed that by increasing one rial in cash in the conditions of uncertainty, investors valued it more than 1 rial. This result was in accordance with the theory principles and research of Jung et al. (2017). The results of the 2nd hypothesis displayed that the company was facing financial constraints, while the value of cash holding was significantly related to uncertainty. This result was consistent with the theoretical and research foundations of Jung et al. (2017) and Chakrat Barati (2017). The results of the 3rd hypothesis showed that with an increase of 1 rial in cash, the investors would value it more than 1 rial in case of uncertainty if the company faced agency problems, thus the 3rd hypothesis of the research was confirmed, which was in accordance with theoretical principles and the findings of the research conducted by Jung et al. (2017). The results of the 4th hypothesis revealed that cash holding value had no significant relationship with uncertainty so that the 4th hypothesis was rejected, which was contrary to the theoretical foundations and research results of Khan et al. (2019) and Jung et al. (2017).

https://amf.ui.ac.ir/article_25961_91fa6c321811d23cf1b2528b13d7c5b5.pdf