\documentclass{article} \usepackage[dvinames]{xcolor} \usepackage[left=1in,right=1in]{geometry} \usepackage{graphicx} \usepackage{sidecap} \usepackage{multirow} \usepackage{fancyhdr} \usepackage[colorlinks=false, pdfborder={0 0 0}, ]{hyperref} \usepackage{lipsum} \usepackage[absolute]{textpos} \usepackage{tikz} \usetikzlibrary{calc} % A nice serif font, but no the prescribed nonfree ITC stone \usepackage[oldstylenums]{kpfonts} \usepackage[T1]{fontenc} \usepackage{float} \usepackage{calc} \usepackage{amsmath,amssymb} \textblockorigin{72.9050pt-2mm}{1pt+0.5cm} \begin{document} \begin{textblock*}{6.575in}(0in,0in) % 6.375=8.5 - 1.5 - 0.625 \begin{center} \begin{tabular}{l l l l l l c l l l l l r} % after \\: \hline or \cline{col1-col2} \cline{col3-col4} ... ORIGINAL ARTICLE & & & & & & Received 12 January. 2016 & & & & & & Accepted 18 April. 2016 \end{tabular} \end{center} \hrule \hrule \begin{tabular}{lc} \multirow{10}{*} {\includegraphics[width=4cm,height=3.6cm]{rsz_ajaer.jpg}} & \\ & Vol. 5, Issue 2, 159-166, 2016\\ & \\ & \textbf{\large Academic Journal of Accounting and Economic Researches}\\ & \\ & ISSN: 2333-0783 (Online)\\ & ISSN: 2375-7493 (Print)\\ & \\ & ajaer.worldofresearches.com\\ & \\ \end{tabular} \hrule \hrule \hrule \hrule \end{textblock*} \title{ \begin{flushleft} Evaluation of institutional investors and efficiency on the profitability of listed companies in Tehran Stock Exchange \end{flushleft} } \author{A. Author} \date{} \maketitle \begin{center} \begin{tabular}{l} \hline % after \\: \hline or \cline{col1-col2} \cline{col3-col4} ... A B S T R A C T \\ \hline \parbox[t]{16cm}{The aim of study is Evaluation of institutional investors and efficiency on the profitability of listed companies in Tehran Stock Exchange. In this study, according to available data types and methods of statistical analysis, the method of "data panel" is used. The study examined two different aspects: the variable among different companies and for the period 2009-2014.For the study of literature and literature review, used a library Persian and Latin books and professional articles and thesis. After collecting the required information, for analysis of data used software Spss20 20, Eviews 7 and Minitab16. The statistical population consisted of all companies listed on the Stock Exchange of Tehran. This includes 520 companies in 37 industry groups. result showed that there is significant relationship between proportion of institutional investors and corporate profitability. And there is a significant relationship between productivity and profitability. And there is a significant negative relationship between the proportion of managerial ownership and corporate profitability.} \\ \hline \textbf{\emph{Keywords:}}Social Responsibility, Earnings Transparency, Stock Price Crash Risk \\ \hline \end{tabular} \end{center} \section{INTRODUCE} Profitability and fluctuations related to its strategy in today's world of the most important issues related to management. Cash could be the beginning and end of the treatment cycle imagine. Cash is the main element of current assets in the balance sheet is the main source of profitability (Composites, et al., 2012). Management decisions depends in connection with the financing of investment and productivity increases or decreases, the amount of cash available to fund cash that is expected to be available in the future (Babyk et al., 2011). In fact, due to the decrease of cash in a company have system-wide consequences. The importance of cash in connection with capital expenditures for each business unit is beyond any other issue (Driffield et al., 2010).\\ The knowledge-based management, policy management and institutional investors with sufficient knowledge of the conditions of participation, future cash flows must predict the company and according to these predictions to finance the investment and a look forward to growing the company could not guarantee company (Kvyrva et al., 2009). The company's main business has long been a goal of the highest possible profit (Ho et al, 2013). Capital spending, one of the ways to achieve high profitability is in long-term capital expenditures (Karysyly et al, 2012).\\ In addition to stimulating economic growth and development capital expenditures of society, enhancing the firm's profits (Jlyma et al., 2011). The main subject of innovation and research and development to continuously be provides the basis for new demands (Eicher et al., 2010). This type of demand, which in turn stimulate investment, increase performance, increase productivity and ultimately economic growth and prosperity are guaranteed, are of great importance in the industrialized world (Aystryn et al., 2009). Companies should use in developing scientific and technical research and development to upgrade their capabilities to be able reduce the technological gap with established companies and company performance and ultimately increase productivity (Javrsyk et al., 2009).\\ Despite the economic forces elsewhere in the world have taken the guidance of science and technology, have been created in Iran but still there is a long way to realize the potential of their community in this regard (Jalalabadi, 2001).\\ Zhu and Han (2013), the result of research showed that the relationship between capital employed and structural capital with performance is negative, and the relationship between human capital performances is positive. And the relationship between capital employed and human capital performance was not significant. Ghesh (2012) studied the influence of financial leverage, dividend policy and the profitability of the enterprise in India's future value. This study shows that a non-linear relationship between financial leverage, profitability and a possible increase in the value of the company's future.\\ Ahmadpur et al (2013) examined the impact of outside directors and institutional investors in the behavior of earnings management. The results show that abnormal accruals cannot be changed justify profitability and as a signal to profitability in the next years. Also the results showed that when the motivation is high for earnings manipulation, outside directors and major institutional investors, weak role in the reduction of abnormal accruals.\\ Shaari and Marfoo (2012), the study examines the relationship between the composition of the board of directors and institutional investors and profit forecasts began. The findings suggest the importance of low-outside directors and institutional investors the impact on corporate profits is forecast features. The aim of this study is to answer these questions whether affected the proportion institutional investors and Productivity On the profitability of the listed companies in Tehran Stock Exchange?\\ \section{METHODOLOGY} In this study, according to available data types and methods of statistical analysis, the method of "data panel" is used. The study examined two different aspects: the variable among different companies and for the period 2009-2014.For the study of literature and literature review, used a library Persian and Latin books and professional articles and thesis. Required data of the financial statements contained in the management of sites, development and Islamic studies from the Organization for Security and Exchange www.rdis.ir and Kodal network, comprehensive information systems publishers www.codal.ir, financial data processing center of Iran www. Fipiran.com and CDs of the securities and exchange manually extracted.\\ After collecting the required information about the handling companies, research hypotheses using correlation and regression analysis statistical method panel data, was evaluated. And basic calculations in Excel spreadsheet software and data analysis will be ready, then, to do the final analysis software 20 Spss, Eviews 7 and Minitab16 is used.\\ The statistical population consisted of all companies listed on the Stock Exchange of Tehran. This includes 520 companies in 37 industry groups. The sample method is screening method. For this purpose, the following criteria are considered and, if a company has all criteria to be selected as one of the sample companies Table 1. Assumptions were applied in order, so that any company that was first in default, are not to count the next assumptions. In this study, after the default, 109 companies of 19 industry remained. Inclusion criteria:\\ 1. Companies that up to the end of March 2008 and their names have been listed in the Tehran Stock Exchange by the end of 2014, of companies listed above, are not removed.\\ 2. during the period considered, that shares are actively traded on the exchange.\\ 3. To enhance the comparability of companies surveyed, they have the financial period ending 29 March and during the financial period have not changed.\\ 4. Component of financial intermediation companies (investment, holding, leasing and banking and insurance) due to their performance being different, not.\\ 5. The information required is available.\\ \begin{center} Table 1. The research sample selection process \end{center} \begin{tabular}{|l|c|} \hline % after \\: \hline or \cline{col1-col2} \cline{col3-col4} ... All companies listed on stock on 29.12.2013 & 44 \\ \hline Companies that were suspended during the period of investigation or have been out of stock & 124 \\ \hline Companies whose fiscal year does not end or change them to 29 March financial year have & 92 \\ \hline Financial intermediation companies (investment, holding, leasing and banks) & 18 \\ \hline The companies that during the period considered, whose shares are not actively traded stock & 61 \\ \hline Companies that had not your financial statements at the time of the study of 2014 & 3 \\ \hline The companies that their information was not enough to get some variables & 69 \\ \hline The total sample testable in view of the assumptions & 109 \\ \hline \end{tabular} \section{RESULT} First hypothesis: The relationship between the proportion of institutional investors and corporate profitability\\ H:there isn't significant relationship between proportion of institutional investors and corporate profitability.\\ H:There is significant relationship between proportion of institutional investors and corporate profitability.\\ This hypothesis using model (1) for panel data estimation and if the coefficient is significant at a confidence level of 95 percent was approved.\\ \begin{equation}\label{1} prof_{i,t}=\alpha_{0}+\beta_{1}InsOwn_{i,t}+\beta_{2}TFP_{i,t}+\beta_{3}Prive_{i,t}+\beta_{4}Mown_{i,t}+ \beta_{5}PerM_{i,t}+\beta_{6}InvFID_{i,t}+\beta_{7}Size_{i,t}+E_{i,t} \end{equation} \begin{center} Table 2.Chow and Hausman test results for the model (1) \\ \end{center} \begin{center} \begin{tabular}{|c|c|c|c|c|c|} \hline Test & N & . & . & .& . \\ \hline Chow & N & . & . & .& . \\ \hline Hausman & N & . & . & .& . \\ \hline \end{tabular} \end{center} Also according to Hausman test, and P-Value of (0.0391), which is less than 0.05, test hypothesis rejected at 95 percent and the hypothesis is accepted. Second hypothesis:\\ : There is a significant relationship between productivity and profitability.\\ : There isn’t a significant relationship between productivity and profitability.\\ This hypothesis using model (1) for panel data estimation and if the coefficient is significant at a confidence level of 95 percent was approved.\\ T-statistic for variable factor productivity is smaller than 0.05 (0003/0), resulting in a significant relationship between productivity and profitability at the level of 95 percent is confirmed. The second hypothesis is accepted and can say with 95 percent confidence there was a significant relationship between productivity and profitability.\\ Third hypothesis:\\ : There isn’t significant relationship between productivity and profitability originating from the influence of institutional investors.\\ : There is significant relationship between productivity and profitability originating from the influence of institutional investors.\\ This hypothesis using model (1) for panel data estimation and if the coefficient is significant at a confidence level of 95 percent was approved.\\ T-statistic for variable factor productivity is smaller than 0.05 (0.0001), resulting in a significant relationship between productivity and profitability at the level of 95 percent is confirmed. The third hypothesis is accepted and can say with 95 percent confidence there was a significant relationship between productivity and profitability originating from the influence of institutional investors.\\ Forth hypothesis:\\ : There isn’t a significant relationship between the proportion of managerial ownership and corporate profitability.\\ : There is a significant relationship between the proportion of managerial ownership and corporate profitability.\\ This hypothesis using model (1) for panel data estimation and if the coefficient is significant at a confidence level of 95 percent was approved.\\ T-statistic for variable factor productivity is smaller than 0.05 (0.0083), resulting in a significant relationship between productivity and profitability at the level of 95 percent is confirmed. The third hypothesis is accepted and can say with 95 percent confidence there was a significant negative relationship between the proportion of managerial ownership and corporate profitability. A negative coefficient for this variable (-0.0064) implies the existence of an inverse relationship between the management and profitability of the company's property so that the increase of 1 unit of property management, corporate profitability has also reduced the unit 0.0064. \section{CONCLUSION} Stock price crash is a phenomenon in which the stock price suffers a severe and abrupt negative adjustment. One of the most important ways to manipulate accounting information is to accelerate the identification of good news versus delaying the recognition of bad news in earnings. However, there is always a final level of accumulation of bad news in the corporate and reaching the final level, the bad news will be published all at once. This leads to a fall in stock prices of the corporate. The main objective of this study is to investigate the relationship between social responsibility, earnings transparency and stock price crash risk in listed corporates on Tehran Stock Exchange. The studied sample of this research includes 95 listed corporates on Tehran Stock Exchange from 2009 to 2013. Multivariate regression is used to test the hypotheses of this study. The overall results of the research indicate that there is a negative significant relationship between social responsibility, earnings transparency, and crash risk. That is to say, the more the social responsibility and earnings transparency increase, the less the crash risk will be.\\ Stock price crash is a phenomenon in which the stock price suffers a severe and abrupt negative adjustment. One of the most important ways to manipulate accounting information is to accelerate the identification of good news versus delaying the recognition of bad news in earnings. However, there is always a final level of accumulation of bad news in the corporate and reaching the final level, the bad news will be published all at once. This leads to a fall in stock prices of the corporate. The main objective of this study is to investigate the relationship between social responsibility, earnings transparency and stock price crash risk in listed corporates on Tehran Stock Exchange. The studied sample of this research includes 95 listed corporates on Tehran Stock Exchange from 2009 to 2013. Multivariate regression is used to test the hypotheses of this study. The overall results of the research indicate that there is a negative significant relationship between social responsibility, earnings transparency, and crash risk. That is to say, the more the social responsibility and earnings transparency increase, the less the crash risk will be.\\ \end{document}