Journal of accounting, finance and auditing studies

1-31

Authors: Hanieh Dehghan, Mohammadreza Shorvarzi

Achieve to optimal financial leverage for achieving to maximum profitable, value and minimum capital are important topics of research that studies by financial experts. Economic researchers found that capital structure and firms performance are affiliated with each other but the relationship between them according to financial operations in international affairs is not the same and according to country type depends on financial structure and economic conditions. The aim of the present article is to evaluate the mutual relationship between financial leverage and firm performance concerning the moderating role of the firm size. Given that, the financial information of 108 listed companies in Tehran Stock Exchange were used during the financial period from 2005 to 2014. Multivariable regression model was employed for hypotheses testing. The results indicated that there is a positive and significant relationship between financial leverage and firm performance and the firm size has no moderating effect on the relationship between the two variables. Moreover, there is a negative and significant relationship between financial leverage and the changes of firm performance and the firm size has no moderating impact on these relationships. On the other hand, there is a negative and significant relationship between firm performance and the changes of financial leverage. Similarly, the moderating effect of the firm size was not significant in these relationships.

52-90

Authors: Peter J Baldacchino, Christine Bartolo, Simon Grima

The objectives of this paper are to ascertain and assess the role of the Public Accounts Committee (PAC) in Maltese public finance, analyzing its operational effectiveness and the barriers to it, and assessing its relationships with major stakeholders. The research methodology involves the conduct of nineteen semi-structured interviews, attendance to one PAC sitting, a review of applicable PAC transcripts, and an examination of relevant legislative pieces governing the PAC. The study finds that PAC is fulfilling a wide proportion of its remit, recently exercising an improved role. However, the reoccurrence of errors and weaknesses within the public sector highlights the need for the Committee to investigate further areas falling within its scope, thus acting as a deterrent to the misuse of public funds. Additionally, improvements in the PAC’s operational effectiveness are called for, particularly with regard to its structure and member composition, as well as its communication of end results and follow-ups. The appointment and participation of technical expertise in PAC meetings, and the widening of the PAC’s mandate to incorporate broader topics would also be conducive to enhanced effectiveness. In addition, while the Committee’s relationships with its major stakeholders are deemed positive, it is evident that there is still room for improvement. The PAC is instrumental in the conduct of effective financial scrutiny and oversight, which in turn enhances its contribution to the proper management of Maltese public finances. Yet, achieving a strong impact may be restricted by the existence of barriers that are impeding the Committee’s operational effectiveness. While the surmounting of such obstacles becomes highly relevant for the PAC to retain its watchdog function, the maintenance of effective relationships with its main stakeholders is also necessary if it is to make the most of such links. It is hoped that this paper contributes to +further progress in the PAC’s operations and in the public sector’s use of public resources.

109-136

Authors: Feden Koç

Objective of this study is to examine the economic value added (EVA) approach, which is a value-based performance measurement method, and the calculation of this approach from the methods used to measure financial performance. In this context, an application has been presented for the examination and comparison of holdings and investment companies in terms of economic value, using annual financial statement data for holding companies and investment companies traded in Stock Exchange Istanbul 100 index in Turkey in 2016. In the application part, 9 holding and investment companies were examined and compared in terms of economic added value. In the practice part of the study, companies that can access paid dividend data for the last five years are included in the holding companies and investment companies sector, while the other companies are excluded from the research. According to the findings of the study, when the holdings and investment companies examined in the study are evaluated in general for 2016, Hacı Ömer Sabancı Holding Joint Stock Company, which has the highest EVA value and the best financial performance. (-787.415.407,65) and Eczacıbaşı Investment Holding Partnership Joint Stock Company (117.686.290,15) cannot create value for their shareholders with EVA value, whereas the existing Have consumed their capital. It has been found that they cannot create shareholder value with EVA value and consume their existing capital instead of creating value.