Investigating the Effect of Firm Opacity on Stock Returns: The Moderating Role of Board Gender Diversity
Subject Areas :Parniyan Jamshidi 1 , saeid aliahamdi 2
1 - Master student of accounting department, Isfahan branch (Khorasgan), Islamic Azad University, Isfahan, Iran.
2 - Associate Professor of Accounting Department, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran. (Responsible author)
Keywords: Stock Returns, Firm Opacity, Board Gender Diversity,
Abstract :
The most important criterion for evaluating the performance of institutions at present is the stock return rate. This criterion alone has informational content for investors and is used to evaluate performance. Firm opacity can also affect the performance of companies and cause changes in their efficiency. Firm opacity financial helps investors and managers in identifying and evaluate investment opportunities. For this purpose, information must be available and reliable so that financial and human resources are invested in the sectors with the highest returns and what is expected is achieved. Therefore, the purpose of this research is to examine the moderating role of board gender diversity on the relationship between firm opacity and stock returns of companies listed on the Tehran Stock Exchange. To achieve this goal, three hypotheses were formulated. To test the hypotheses, a sample consisting of 130 companies admitted to the Tehran Stock Exchange during the years 2017 to 2022 was selected and multiple regression based on composite data was used. The results of the research show that firm opacity has a positive effect on stock returns. Board gender diversity does not have a significant effect on stock returns. Also, board gender diversity does not moderate the relationship between firm opacity and stock returns.
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