Characteristics of the board of directors, Risk taking and Operational Risk of the company
Subject Areas :
zakiyeh
khosravanimehr
1
(Master's student in Accounting, Department of Accounting, Faculty of Management and Accounting, Payam Noor University, Tehran West, Tehran, Iran)
Keywords: Operational Risk, Board Independence, Board Size, CEO Duality, Risk Tolerance,
Abstract :
Due to the global financial crisis, companies' risk-taking has attracted the attention of the public, legislators, and academics in the past few years. The company's risk-taking level indicates whether managers choose a risky project or not. A higher level of risk-taking means that managers prefer risky but value-enhancing investments that advance production technology. They have incentives to increase corporate risk-taking by making risky investments.Therefore, this article aims to investigate this issue from the perspective of board of directors' governance, the characteristics of the board of directors are discussed with operational risk and risk-taking of the company. The method of data collection, the method of mining documents and referring to databases, and the method of data analysis is inferential, and the software used to prepare data and estimate patterns is Eviuz. In order to test the research hypotheses, the combined data model was used. The statistical population of the research is the companies admitted to the Tehran Stock Exchange, 136 companies were selected and examined by systematic elimination sampling in the period from 1395 to 1401. The findings of the research show that there is no relationship between the size of the board of directors and the risk-taking of the company. Also, there is a direct and significant relationship between the company's risk-taking and the independence of the board of directors, and there is an inverse and significant relationship between the CEO's duality and the company's risk-taking. There is an inverse and significant relationship between the independence of the board of directors and the operational risk of the company. Also, there is no significant relationship between the size of the board of directors and the operational risk of the company. There is no significant relationship between the CEO's ambivalence and the operational risk of the company.
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