Intellectual capital is a new matter that theoretically is suggested in the few
The main objective of this paper is to investigate the relationship between board characteristics and the sustainable growth of companies listed at Tehran Stock Exchange. Board characteristics in this study include the size of the board, number of board meetings, the share of non-bound managers of the board, duality of managing director duties and maintaining shares of the Board of Directors. According to previous similar studies, firm size and financial leverage are considered as control variables. In this study, statistical population includes all companies listed at Tehran Stock Exchange. Some restrictions applied on the Statistical population and a sample consisted of 54 companies was selected. Data analysis was conducted on data collected from 2006 to 2012. Multiple linear regression analysis and correlation coefficient methods were used for data analysis and obtaining hypothesis test results. The results indicate that there is no significant relationship between the size of the board, share of non-bound managers of the board, number of board meetings, maintaining shares of the Board of Directors and sustainable growth while there is a significant negative relationship between Managing Director duality of duties and sustainable growth rate. International Journal of Academic Research in Business and Social SciencesJune , Vol. 4, No. 6 ISSN: 2222 385 www.hrmars.com Keywords: Board of Directors size, number of meetings, non-duty managers, maintaining board share, sustainable growth. 1-IntroductionAgency issue is main topic of Board of Directors discussion. This is because conflict of interest between managers and shareholders leads to the creation of agency costs. Distributed ownership (decentralized) causes agency problems because ability and incentives of shareholders to control management will be reduced due to their small shares. In addition, shareholders can often invest in several companies to reduce risk through diversification. They are investing in their stock portfolio for the hope of future profits not for the hope of a better future in a particular company. In addition, dispersed shareholders have no the ability to control management effectively because they do not have sufficient information and expertise necessary to make correct decisions. On the other hand, centralized ownership significantly motivates the major shareholders. Accordingly, they also will have more motivation to improve the company operations and management control as their share in the company increases. There are obvious benefits of centralized ownership but some arguments against this issue are also true. First, shareholders are generally risk averse. Second, when excessive control by centralized ownership occurs, internal stakeholders (managers and employees) will be discouraged of costly investments. Third, centralized ownership may cause agency problems in another way, i.e. conflict arise between major shareholders and other stakeholders. Major shareholders will have necessary incentives to use their control situat...
One of the most important subjects in the financial management is the systematic risk which has always been focused on by the researchers. Due to the vastness of the market, there exist different devices for the investment in every financial market. The main goal of the shareholders, business owners and those who are concerned is to produce the optimum return and they face some risks in order to reach their goals and the fundamental requirement is to keep the relation between the risk and the return balanced. In other words, the decision makers of the stock markets produce their desired return by using the financial information of the companies. Therefore, the investigation into the risk and the factors influencing the risk is of importance. This article studies the reliability of the accounting information upon the systematic risk. To test the hypothesis, the data obtained from 52 companies listed on the Tehran stock exchange from 2006-2010 were chosen by the systematic deletion method and were tested by using the multi-variable regression. The conclusion suggests that there is a significantly positive statistical relation between the reliability of accounting information and the systematic risk.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2025 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.