Data Mining Approach Using Practical Swarm Optimization (PSO) to Predicting Going Concern: Evidence from Iranian Companies

Mahdi Salehi,Fezeh Zahedi Fard 한국유통과학회 2013 유통과학연구 Vol.11 No.3

Purpose - Going concern is one of fundamental concepts in accounting and auditing and sometimes the assessment of a company’s going concern status that is a tough process. Various going concern prediction models’ based on statistical and data mining methods help auditors and stakeholders suggested in the previous literature. Research design - This paper employs a data mining approach to prediction of going concern status of Iranian firms listed in Tehran Stock Exchange using Particle Swarm Optimization. To reach this goal, at the first step, we used the stepwise discriminant analysis it is selected the final variables from among of 42 variables and in the second stage; we applied a grid-search technique using 10-fold cross-validation to find out the optimal model. Results - The empirical tests show that the particle swarm optimization (PSO) model reached 99.92% and 99.28% accuracy rates for training and holdout data. Conclusions – The authors conclude that PSO model is applicable for prediction going concern of Iranian listed companies.

Islamic Banking Ranking Efficiency Based on a Decision Tree in Iran

Mahdi Salehi,Jalil Khaksar,Elahe Torabi 한국유통과학회 2014 Asian Journal of Business Environment (AJBE) Vol.4 No.2

Purpose – This study attempts to examine Islamic banking practices in Iran based on new scientific methods. Design, methodology, and approach – The study used financial ratios demonstrating healthy or non-healthy banks to assess the financial health of banks listed on the Tehran Stock Exchange. The assessment of these ratios with a decision tree as a non-parametric method for modeling is recommended to present this model. Information about the financial health of banks could affect the decisions of different groups of banks’ financial report users including shareholders, auditors, stock exchanges, central banks, and so on. Results – The results of the study show that a decision tree is a strong approach for classifying Islamic banks in Iran. Conclusions – To date, several studies have been conducted in various countries on the topic of this study. Considering the importance of Islamic banking, this is one of the first studies in Iran the outcomes of the study may prove helpful to the Iranian economy.

Administrative Barriers Regarding the Participation of Taxpayers in Iran

Mahdi Salehi,Zakeyeh Doryab,Hossein Rabbani 한국유통과학회 2013 유통과학연구 Vol.11 No.5

Purpose - Taxes are a critical source of government revenue, particularly for aiding development and progress in a society. Today, taxes are viewed as a tool for growth and stability and for reducing inequalities; a country’s citizens play a vital role in realizing this objective through their participation. Research design, data, and methodology - In Iran, tax collection and preparation are always of great concern and represent the most important responsibilities of the government. This study seeks to investigate the administrative barriers in taxpayer participation and highlights the challenges regarding timely tax collection faced during 2011, from the point of view of both tax expertsand taxpayers. Results - Sixty-six questionnaires from taxpayers and tax experts in the Zanjan province were collected and tested using statistical tools. Conclusions - The results indicate that there are no obstacles in taxpayer participation; moreover, both taxpayers and tax experts have similar opinions regarding this issue.

Prediction of Auditor Selection Using a Combination of PSO Algorithm and CART in Iran

Mahdi Salehi,Sharifeh Kamalahmadi,Mostafa Bahrami 한국유통과학회 2014 유통과학연구 Vol.12 No.3

Purpose - The purpose of this study was to predict the selection of independent auditors in the companies listed on the Tehran Stock Exchange (TSE) using a combination of PSO algorithm and CART. This study involves applied research. Design, approach and methodology - The population consisted of all the companies listed on TSE during the period 2005-2010, and the sample included 576 data specimens from 95 companies during six consecutive years. The independent variables in the study were the financial ratios of the sample companies, which were analyzed using two data mining techniques, namely, PSO algorithm and CART. Results - The results of this study showed that among the analyzed variables, total assets, current assets, audit fee, working capital, current ratio, debt ratio, solvency ratio, turnover, and capital were predictors of independent auditor selection. Conclusion - The current study is practically the first to focus on this topic in the specific context of Iran. In this regard, the study may be valuable for application in developing countries.

Companies Life Cycle Stages and Capital Structure in Emerging Markets: Evidence from Iran

Mahdi Salehi,Vahab Rostami,Lida Salmanian 한국유통과학회 2013 유통과학연구 Vol.11 No.2

Purpose – The current research examines the effect of life cycle stages on capital structure of listed companies in Tehran Stock Exchange. Research design, data, methodology – By aid of 685 year‐company data, which collected from financial statements of companies during 2006‐2012, first, the companies, are classified into three groups including companies in growth, maturity and decline stages. After removing the companies, which were not in accordance with life cycle model, 86 companies were selected to test two main hypotheses of the research. Results – The results show that the capital structure of the sample companies is different in various life cycle stages. More investigation by LSD test also revealed that the total debt to total assets ratio means of the companies in growth stages were significantly different from those companies in maturity stages and those in growth stages had high level of debt to assets ratio. Conclusions – The result showed the average amount of the working capital for companies in three stages are significantly different and due to high level of operation of the companies in maturity and decline stages, these companies held high amount of working capital than those in the growth stages.

Association between Corporate Governance and Corporate Performance in Iran

Mahdi Moradi,Mahmood Mousavi Shiri,Mahdi Salehi,Habib Piri 한국유통과학회 2013 유통과학연구 Vol.11 No.11

Purpose Considering corporate companies that are continually growing and bearing in mind the theory of agency, how confident can stakeholders be about their benefits in relation to managers’decisions? Previous research has indicated that the type of corporate governance can have an effective impact on companies’ performance. The current study aims to investigate the impact of ownership structure on listed companies on the Tehran Stock Exchange. Research Design, Data, and Methodology Through use of the correlation coefficient, the results indicate a positive correlation among the percentage of common stock held by board members, the percentage of non-executive board members, and separation of the positions of chairperson of the board of directors and managing director. Results Based on the return on assets index, only the correlation between the proportion of ownership of the managing director and financial investment company ownership is significant. Conclusion Managers can potentially make decisions that –benefit themselves but are detrimental to shareholders' interests. Corporate governance is a factor that can mitigate agency costs. Corporate governance comprises the laws, regulations,structures, processes, cultures, and systems that lead to the achievement of objectives such as accountability, transparency,justice, and stakeholders' rights.

Impedance Control of Flexible Base Mobile Manipulator Using Singular Perturbation Method and Sliding Mode Control Law

Mahdi Salehi,Gholamreza Vossoughi 대한전기학회 2008 International Journal of Control, Automation, and Vol.6 No.5

In this paper, the general problem of impedance control for a robotic manipulator with a moving flexible base is addressed. Impedance control imposes a relation between force and displacement at the contact point with the environment. The concept of impedance control of flexible base mobile manipulator is rather new and is being considered for first time using singular perturbation and new sliding mode control methods by authors. Initially slow and fast dynamics of robot are decoupled using singular perturbation method. Slow dynamics represents the dynamics of the manipulator with rigid base. Fast dynamics is the equivalent effect of the flexibility in the base. Then, using sliding mode control method, an impedance control law is derived for the slow dynamics. The asymptotic stability of the overall system is guaranteed using a combined control law comprising the impedance control law and a feedback control law for the fast dynamics. As first time, base flexibility was analyzed accurately in this paper for flexible base moving manipulator (FBMM). General dynamic decoupling, whole system stability guarantee and new composed robust control method were proposed. This proposed Sliding Mode Impedance Control Method (SMIC) was simulated for two FBMM models. First model is a simple FBMM composed of a 2 DOFs planar manipulator and a single DOF moving base with flexibility in between. Second FBMM model is a complete advanced 10 DOF FBMM composed of a 4 DOF manipulator and a 6 DOF moving base with flexibility. This controller provides desired position/force control accurately with satisfactory damped vibrations especially at the point of contact. This is the first time that SMIC was addressed for FBMM.

The Relationship between Ownership Structure and Conservatism of Companies in Iran

Mahdi Salehi,Bizhan Abedini,Razieh Bahrani 한국유통과학회 2014 유통과학연구 Vol.12 No.5

Purpose - Since Iran’s economy is only now developing, and its stock market is only now emerging, we should deal with the relationship between ownership structure and conservative accounting of companies to see whether such a relationship exists in Iran’s market. This study aims to investigate the relationship between ownership structure and accounting conservatism of listed companies on the Tehran Stock Exchange. Research design, data, and methodology - All listed companies on the Tehran Stock Exchange, for which the required information financial statements (balance sheet, profit and loss account) could be acquired for the period 2007–2012, were studied. A total of 123 companies from various industries was selected. Results - In order to test the hypotheses, multi variate regression (inter procedure), with their meaningful t- and f-statistics, and a Durbin-Watson autocorrelation model were used. Conclusions - The research results show that the ownership of major shareholders and ownership concentration have a negative significant relationship with accounting conservatism. Therefore, as a significant negative relationship between concentration of ownership and accounting conservatism at the 95% confidence level was found, the second hypothesis was confirmed.

Corporate governance and earnings quality: the Iranian evidence

Mahdi Salehi,Azadeh Asgari 한국유통과학회 2013 유통과학연구 Vol.11 No.6

Purpose - The main question in this study is whether there is any relationship between corporate governance variables and earnings quality. The size of the board and audit committee, the number of stockholding managers and non-executive directors, and management quality are considered as independent corporate governance variables in the hypotheses. Research design, data, and methodology - Earnings quality is used as the dependent variable. Input from the abovementioned variables are drawn from 94 listed companies in the Tehran Stock Exchange for the period between 2006 and 2010. Results - This study examines corporate governance aspects such as the size of the board of directors, the number of shares held by the board, the board’s independence, and the percentage of nonexecutive directors. The results show that establishing an audit committee has a significant role in ensuring higher quality reported earnings. Conclusions - The regression statistics output reveals a meaningful relationship between earnings quality and the size of the board of directors,the number of non-executive directors, and the size of the audit committee. This result indicates that improving earnings quality requires that the size of the board of directors be taken into account.

Corporate Governance and Cost of Equity: Evidence from Tehran Stock Exchange

SALEHI, Mahdi,ARIANPOOR, Arash,DALWAI, Tamanna Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.7

The purpose of this study was to investigate the impact of corporate governance index on the cost of equity in companies listed on the Tehran Stock Exchange. This study collects data from 975 observations during the period 2012 to 2018 to test the hypotheses using multiple linear regression model for the panel data. In this research, the independent variable of corporate governance index comprises of 27 specific corporate governance attributes. The results of hypothesis testing showed that corporate governance has a negative and significant effect on the rate of capital cost. In other words, the quality of corporate governance can lower the rate of capital cost. This result suggests that, by using a powerful corporate governance system and by declining the information asymmetry (increasing transparency) and agency conflict, we would be able to enhance the quality of financial reports. It would strengthen the capital market, attract financial suppliers and investors, and absorb the required financial resources of the firm by a lower rate. The findings of the study suggest that companies are able to reduce the cost of equity by establishing strong corporate governance. This conclusion suggests the importance and effectiveness of corporate governance in the cost of equity.