Mohamad Omid Akhgar; Hamze Zaheddoost
Abstract
The goal of my research is to explore relationship between the cost of capital and CEO turnover with an emphasis on investment opportunities in companies listed on Tehran Stock Exchange. By the expansion of companies, office's owners submit the company to managers. High cost of capital which stems from ...
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The goal of my research is to explore relationship between the cost of capital and CEO turnover with an emphasis on investment opportunities in companies listed on Tehran Stock Exchange. By the expansion of companies, office's owners submit the company to managers. High cost of capital which stems from a poor decision-making in the process of management, might lead on account of sufficient investment to overlook the investments opportunities. Therefore, in a course of assessing the performance of managing committee and decisions concerned them, it might be effective. This research is practical and descriptive-correlative, from the viewpoint of purpose and nature, respectively. In order to achieve my purpose, 188 companies which has been accepted among the Tehran Stock Exchange, during 1387 to 1394 on the basis of systematic sampling-deletion method and overally, in order to perform the analysis, 1504 firm-years is considered. In line with the previous efforts, two assumptions has been cited, and two models: The growth rate of the market value of the total assets and Tobin’s Q have been tested as the representative of investment opportunities. In order to trial the validity of assumptions, we made use of logical regression and compound data. Findings on the basis of Tobin’s Q illustrate that there is a positive and meaningful relationship between cost of capital and CEO turnover. This means that the cost of capital is the explanatory power of the replacement CEO. We also find out that the investment opportunity intensifies the cost of capital and the CEO turnover; however, in the model of growth rate of market value of the total assets, there was no sign between the cost of capital and the CEO turnover.
Hasan Valiyan; Mehdi Safari Gerayli; Mohammadreza Abdoli; Alireza Koushki Jahromi
Abstract
According to the agency theory, in order to reduce the problems and agency conflicts, appropriate control mechanisms must be adopted so that the CEO moves in the interests of the shareholders and help shareholders to improve the level of transparency of financial reporting. One of these approaches is ...
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According to the agency theory, in order to reduce the problems and agency conflicts, appropriate control mechanisms must be adopted so that the CEO moves in the interests of the shareholders and help shareholders to improve the level of transparency of financial reporting. One of these approaches is paying attention to the competitive motivations of the CEO in the form of strategies to reduce conflicts and costs arising from the formation of agency relationships. The purpose of this research is The Effect of Tournament Incentives on Financial Restatements According to the moderating role of the CEO Turnover and CEO Recruited New listed companies in Tehran Stock Exchange. In this study, 72 companies were considered during the period from 2010 to 2016. The hypotheses were tested through logistic regression. The results showed that the CEO's Tournament Incentives reduced the refinement of corporate financial statements. CEO tenure also revealed the impact of CEO's Tournament Incentives of the Firm restated the Financial Restatements in order to offset the negative. Ultimately, the CEO Recruited New from within the firm could help to strengthen the positive impact of the CEO's Tournament Incentives on Financial Restatements.
