The impact of the characteristics and behaviors of the board of directors on agency costs in Iran

Salehi, Mahdi; Sadatifar, Zakiyeh; Adibian, Mohammad Sadegh

doi:10.22201/fca.24488410e.2021.2384

Cited by 5 publications

(10 citation statements)

References 28 publications

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“…One of the potentialities for inconsistent findings of this paper, in comparison to previous outcomes, might come from the business environment of the Tehran stock exchange. For instance, CEO ability [71], auditor characteristics [15], and ownership structure [72] are among the effective factors on firm performance in the Iran market environment. Therefore exclusion of these explanatory variables may result in a different conclusion.…”

Section: Discussionmentioning

confidence: 99%

“…Intellectual capital is a set of structural and human capital, including the applied business, organizational technology, customer relationship, and professional skills. Producing a sense of competitive advantage could lead to a company's growth in the market [15]. Intellectual capital is a type of asset, which measures the capability of an organization for generating wealth.…”

Section: Firm Improvement and Intellectual Capitalmentioning

confidence: 99%

“…For instance, Dženopoljac et al [24] reveal that intellectual capital impacts the ICT industry's financial performance. Even it is suggested that intellectual capital may improve the bankruptcy models, which is pivotal to nowadays economy for wealth creation [15,25,26]. Bchini [1] found a positive and significant relationship between the components of intellectual capital and value creation.…”

Section: Firm Improvement and Intellectual Capitalmentioning

confidence: 99%

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The Effect of Intellectual Capital and Board Characteristics on Value Creation and Growth

Salehi

Zimon

2021

Sustainability

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The present study evaluates the relationship between intellectual capital and corporate board characteristics on value creation and growth. Different work experiences and education were two indexes of intellectual capital, and gender diversity was the only characteristic of board members. The study’s statistical population includes companies listed on the Tehran Stock Exchange during 2012–2018. Panel data regression models were employed to elucidate the relationship between research variables. The obtained results indicated that the intellectual capital of the board members of companies listed on the Tehran Stock Exchange does not affect companies’ value and growth. According to the results, appointing female managers should not be dependent on firm growth because gender diversity does not affect the value creation and growth of companies listed on the Tehran Stock Exchange.

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Section: Discussionmentioning

confidence: 99%

Section: Firm Improvement and Intellectual Capitalmentioning

confidence: 99%

Section: Firm Improvement and Intellectual Capitalmentioning

confidence: 99%

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The Effect of Intellectual Capital and Board Characteristics on Value Creation and Growth

Salehi

Zimon

2021

Sustainability

Self Cite

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“…Corporate fraud in developed and developing economies reveals that even with good corporate governance controls, firm management can still misreport or conceal information, resulting in reduced monitoring of overinvestment of FCF (Maurović & Hasić, 2013; Myers & Majluf, 1984; Zhang & Cao, 2016). In line with this view, Salehi et al (2020) stated that availability of information and good governance structure reduce information asymmetry and conflicts of interest between shareholders and owners. In stock markets, signaling theory predicts that the better performing firms determine information disclosure policies that allow their superior quality to be revealed to the market.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 94%

Ineffective implementation of corporate governance? A call for greater transparency to reduce agency cost

et al. 2021

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This study uses a moderated‐mediation model to examine the conditional indirect effect of corporate governance on agency cost. Based on a sample of 155 firms during the period of 2013–2019, results of our study are consistent with agency cost hypothesis that managers and controlling shareholders make suboptimal investments when disclosure quality is less in firms. The findings of the study have implications for regulatory bodies responsible for ensuring the effective execution of corporate governance mechanisms. Likewise, in response to calls for additional control devices such as voluntary disclosures, it is important to set voluntary reporting standards.

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“…Considering that the governance-performance relationships should be controlled, this study grouped control variables according to their relation to firm-specific and firm financial performance. The selection of control variables was based on prior studies (Oxelheim and Randøy, 2003;Masulis et al, 2012;Jackowicz et al, 2014;Estélyi and Nisar, 2016;Amin and Nor, 2019;Tapver, 2019;Mehmood et al, 2019;Hossain, 2020;Mirza et al, 2020;Salehi et al, 2020). The inclusion of individual effects was determined by the need to control for individual heterogeneity.…”

Section: Control Variablesmentioning

confidence: 99%

International Experts’ Influence on Company Internationalization

Kravchenko¹

2021

CEMJ

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Purpose: The article evaluates the associative relationship between international supervisory board experts and foreign ownership, along with the experts’ influence on the financial and operating performance of firms. The study was based on data collected for 257 companies listed on the Warsaw Stock Exchange in 2010–2015. Methodology: The dataset was built as a panel, and then generalized least squares regression models with a fixed or random effect were employed to test hypotheses. Findings: The findings of the study clearly show that the presence of investigated firms in foreign markets positively affects company performance. Moreover, models with dependent variables ROA and ROS show that supervisory board members with foreign experience positively affect profitability indicators of firms that do not operate on foreign markets. The data analyses reveal that international experts are more effective advisors for companies that conduct no business activities on foreign markets. Furthermore, the results show a positive moderate association between the share of international experts in supervisory boards and the share of foreign ownership in the company. Originality: The article contributes to the understanding of determinants and consequences of the presence of international experts in supervisory boards and company internationalization.

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The impact of the characteristics and behaviors of the board of directors on agency costs in Iran

Cited by 5 publications

References 28 publications

The Effect of Intellectual Capital and Board Characteristics on Value Creation and Growth

The Effect of Intellectual Capital and Board Characteristics on Value Creation and Growth

Ineffective implementation of corporate governance? A call for greater transparency to reduce agency cost

International Experts’ Influence on Company Internationalization

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