Designing a Confirmatory Factor Analysis Model to investigate the impact of Risk Management on Corporate Profit Sharing

Subject Areas : Agriculture Marketing and Commercialization

Hossein Nouri Farid ¹ , Alireza Momeni ² , Aziz Gord ³

1 - Accounting Department, Zahedan Branch, Islamic Azad University, Zahedan, Iran
2 - Department of Accounting, Payame Noor University, Tehran, Iran
3 - Department of Accounting, Payame Noor University, Tehran, Iran

Received: 2020-06-18 Accepted : 2020-11-09 Published : 2021-06-01

Keywords: risk management, confirmatory factor analysis, Profit Sharing,

Abstract :

The dividend is one of the issues that has long been considered by financial researchers and continues to be one of the controversial issues in the field of financial management. The aim of this study was to model confirmatory factor analysis to investigate the effect of risk management on corporate dividends. For this reason, we have used some systematic risk components such as exchange rate risk, interest rate risk, and financial risk to measure risk management. In order to investigate the dividend of companies, we have used the variables of earnings per share, dividends, earnings growth per share, and dividend ratio. The research tool was a questionnaire whose reliability was confirmed based on the opinion of a group of faculty members and related experts and Cronbach's alpha coefficient was used to determine the reliability of different departments (0.78-0.92). Data were analyzed using Lisrel8.8 software. To analyze the collected data, first, descriptive statistics describing the main variables and demographic characteristics are examined. Then inferential statistics are presented. In inferential statistics, confirmatory factor analysis (CFA) with covariance-based approach was used by Lisrel8.8 software to assess the occasion of the measurement tool (questionnaire). Also, skolgi and elongation coefficients were used to investigate the type of data distribution. According to the type of questions raised in the questionnaire, an independent sample T-test was used to investigate the assumptions. The results of the hypothesis test indicate that risk management is directly related to corporate dividends.

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