Effect of the Financial Dominance of Financial Institutions on the Risk-taking Level of Managers

Subject Areas : Financial Accounting

Mohsen Omidi ¹ , Majid Zanjirdar ²

1 - Department of Accounting, Arak Branch, Islamic Azad University, Arak, Iran
2 - Department of Finance, Islamic Azad University, Arak Branch, Arak, Iran

Received: 2019-11-19 Accepted : 2020-11-08 Published : 2021-10-01

Keywords: Financial Dominance , Risk-Taking level of managers, Human Resources Expenses , Unexpected Marketing Costs,

Abstract :

The present study aimed to evaluate the effect of the financial dominance of financial institutions on the risk-taking level of managers. The study was conducted on the companies listed in Tehran Stock Exchange (TSE) during 2013-2017. In total, 110 companies were selected using the systematic removal method. Financial dominance of financial institutions was considered as the independent variable, and the risk-taking level of the managers was considered as the dependent variable. This was applied research in terms of type and a correlational study in terms of methodology. Data were collected using the library method by referring to financial statements, exploratory notes, and stock exchange monthly journal. In addition, descriptive and inferential statistics are applied to describe and allocate the collected data. Data analysis was performed using the analysis of variance (ANOVA), F-Limer test, Hausman test, and Jarque and Bera test. Afterwards, multivariate regression analysis was used to accept or reject the research hypotheses in the EViews software. According to the results, financial dominance of financial institutions affects the risk-taking level of the managers. In addition, unexpected marketing costs and human resources expenses influence the association between the financial dominance of financial institutions and risk-taking level of managers

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