The Moderating Effect of the Inflation on the Relationship between Asset Revaluation and the Financial Statements of Companies Listed on the Tehran and Bombay Stock Exchanges

Iranian Journal of Accounting, Auditing and Finance

مقاله 4، دوره 6، شماره 2 - شماره پیاپی 19، مرداد 2022، صفحه 53-68   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2021.41543

نویسندگان

Hilda Shamsadini¹؛ Vahid Bekhradi Nasab^{* 2}؛ JR Mulla³

¹Department of accounting, Bam Branch, Islamic Azad University, Bam, Iran

²Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran

³Department of Accounting, Pune University, India

چکیده

This study investigates the moderating effect of the inflation rate on the relationship between asset revaluation and the financial statements of companies listed on the Tehran and Bombay stock exchanges. In this study, parameters including financial leverage, liquidity, firm size, fixed assets ratio, and firm growth and the data of 112 companies listed on the Tehran Stock Exchange (TSE) and 563 companies listed on the Bombay Stock Exchange (BSE) during the period 2015-2019 are used. Multiple regression is employed to test the research hypotheses to determine the relationship between the dependent and independent variables. F-statistic, F Limmer, and Husman tests are used to test the significance of regression models. The Generalized Least Squares (GLS) method estimates the research models. The results of testing the research hypotheses demonstrate that in both the Tehran and Bombay stock exchanges, without considering the role of the inflation rate, the revaluation of fixed assets is positively and significantly associated with financial leverage, liquidity, and firm size, fixed assets ratio, and firm growth. Moreover, considering the role of the inflation rate, inflation moderates the relationships between financial leverage, liquidity, firm size, fixed assets ratio, firm growth, and the revaluation of fixed assets.

کلیدواژه‌ها

Asset Revaluation؛ Assets Ratio؛ Firm Growth؛ Inflation Rate؛ Liquidity