Investigating the relationship between managing director's marital status and the efficiency of company capital allocation

Subject Areas :

Shahrzad Seraj ¹ , Mohammad Khoshnodan ²

1 - Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Master's student in Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2024-08-09 Accepted : 2025-03-11 Published : 2025-05-22

Keywords: Capital allocation efficiency, management marital status, risk aversion,

Abstract :

Purpose: The purpose of the present study is to investigate the relationship between managing director's marital status and the efficiency of capital allocation of companies listed on the Tehran Stock Exchange.

Methodology: This study examines the marital status of management on the capital allocation of companies listed on the Tehran Stock Exchange, which is applied in terms of purpose and correlation in terms of hypothesis analysis method because this study seeks to find a relationship between several variables.

Findings: The results of the research findings show that single managers, based on less lack of commitment in marital life, are more risk-taking than married managers, and this causes investment in the company, which ultimately leads to the company's capital allocation.

Originality: According to the traditional capital market approach, deviations related to capital allocation are the incorrect alignment of management and shareholder interests and information asymmetry between the company's domestic and foreign investors, and in this regard; Single CEOs are less risk averse and, on the other hand, bring higher capital allocation inefficiency to the organization.

References:

اعتمادی، حسین و فتحی، زهرا (1394). مقایسه توانایی تبیین ارزش بازار شرکت با استفاده از دو متغیر سود خالص عملیاتی پس از کسر مالیات و ارزش افزوده اقتصادی. حسابداری مالی و حسابرسی، 16(4)، 45-67. dor: 20.1001.1.23830379.1391.4.16.3.9
علیزاده، محسن، رضایی، غلامرضا، و تقی‌زاده، رضا (1403). کیفیت حسابرسی و کارایی سرمایه‌گذاری در نیروی کار. پیشرفت‌های حسابداری، 16(1)، 2۷5-۲۹8. doi: 10.22099/jaa.2024.48500.2372
فیض آبادی، فرشته (1402). تأثیر حقوق سهام‌داران اصلی بر کارایی تخصیص سرمایه داخلی، نقش رقابت و تأمین مالی خارجی. حسابداری مالی و حسابرسی، ‌60(15)، 233-254. doi: 10.30495/faar.2023.707974
عشایری، آسوامین (۱۴۰۰). بررسی تاثیر مدیریت هزینه ها و تخصیص مطلوب منابع بر بهبود عملکرد مالی در شرکت‌های وابسته به دولت. فصلنامه رویکردهای پژوهشی نوین در مدیریت و حسابداری، ۱۷(۵) https://civilica.com/doc/1352176
وکیلی فرد، حمیدرضا و شیرازیان، زهرا (1393). تاثیر افق سرمایه‌گذاری روی تخصیص دارایی بین استراتژی‌های رشدی و ارزشی در بورس اوراق بهادار تهران با استفاده از تجزیه‌و‌تحلیل موجک. مهندسی مالی و مدیریت اوراق بهادار، ۵(21)، 131-148. dor: 20.1001.1.22519165.1393.5.21.8.5
یادگاری، نازنین و لعل‌بار، علی (1402). بررسی تأثیر هوش هیجانی مدیران بر ریسک نقدینگی. پژوهش‌های مالی و رفتاری در حسابداری، 3(1)، 129-115. doi: 10.30486/fbra.2023.1985653.1194
Alizadeh, M., Rezaei, G. & Taghizadeh, R. (2024). Audit quality and labour investment efficiency. Journal of Accounting Advances, 16(1), 275-298. doi: 10.22099/jaa.2024.48500.2372 [In Persian]
Al-Hiyari, A., Kolsi, M. C. C. C., Lutfi, A., & Alrawad, M. (2024). Board of director characteristics and corporate labour investment efficiency: empirical evidence from European-listed firms. Corporate Governance: The International Journal of Business in Society, 25(2), 367-388. doi: 10.1108/CG-09-2023-0394
Ashayeri, A. (2021). Investigating the impact of cost management and optimal resource allocation on improving financial performance in government-affiliated companies. Journal of New Research Approaches in Management and Accounting, 7(17), 86-115. https://majournal.ir/index.php/ma/article/view/953 [In Persian]
Bhandari, A., & Javakhadze, D. (2017). Corporate social responsibility and capital allocation efficiency. Journal of Corporate Finance, 43, 354-377. doi: 10.1016/j.jcorpfin.2017.01.012
Burnham, T. C., Chapman, J. F., Gray, P. B., McIntyre, M. H., Lipson, S. F., & Ellison, P. T. (2003). Men in committed, romantic relationships have lower testosterone. Hormones and behavior, 44(2), 119-122. doi: 10.1016/S0018-506X(03)00125-9
Cho, C., Mooney, T., Choi, D., & Via, M. T. (2023). Do married CEOs Foster more efficient innovation?. Review of Financial Economics, 41(3), 242-268. doi: 10.1002/rfe.1174
Etemadi, H., & Fathi, Z. (2013). Compared to explain the company's market value using the two variables net operating profit after tax and value-added economic. Financial Accounting and Auditing Research,16(4),45-67. dor: 20.1001.1.23830379.1391.4.16.3.9 [In Persian]
Feizabadi, F. (2023). Strong shareholder rights, internal capital allocation efficiency, and the moderating role of market competition and external financing needs. Financial Accounting and Auditing Research, 60(15), 233-254. doi: 10.30495/faar.2023.707974 [In Persian]
Garrison, M. (2005). Marriage: essential or expendable?. Legal Studies Paper, (43). doi: 10.2139/ssrn.829825
Hegde, S. P., & Mishra, D. R. (2019). Married CEOs and corporate social responsibility. Journal of Corporate Finance, 58, 226-246. doi: 10.1016/j.jcorpfin.2019.05.003
Hilary, G., Huang, S., & Xu, Y. (2017). Marital status and earnings management. European Accounting Review, 26(1), 153-158. doi: 10.1080/09638180.2016.1266958
Hossain, M. N., & Bhuyan, M. N. H. (2023). CEO marital status and capital allocation efficiency. International Journal of Managerial Finance, 19(5), 1098-1123. doi: 10.1108/IJMF-10-2021-0531
Inostroza, M. A., Velásquez, J. S., & Ortúzar, S. (2023). Gender and decision-making styles in male and female managers of Chilean SMEs. Academia Revista Latinoamericana de Administración, 36(3), 289-334. doi: 10.1108/ARLA-05-2022-0115
Lara, J. M. G., Osma, B. G., & Penalva, F. (2016). Accounting conservatism and firm investment efficiency. Journal of Accounting and Economics, 61(1), 221-238. doi: 10.1016/j.jacceco.2015.07.003
Lee, E., & Powell, R. (2011). Excess cash holdings and shareholder value. Accounting & Finance, 51(2), 549-574. doi: 10.1111/j.1467-629X.2010.00359.x
Malmendier, U., & Tate, G. (2005). CEO overconfidence and corporate investment. The Journal of Finance, 60(6), 2661-2700. doi: 10.1111/j.1540-6261.2005.00813.x
Myers, S.C. (1984). The capital structure puzzle. The Journal of Finance, 39, 574-592. doi: 10.3386/w1393
Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221. doi: 10.1016/0304-405X(84)90023-0
Ozkan, A., & Ozkan, N. (2004). Corporate cash holdings: An empirical investigation of UK companies. Journal of Banking & Finance, 28(9), 2103-2134. doi: 10.1016/j.jbankfin.2003.08.003
Rabin, M. (2013). Risk aversion and expected-utility theory: A calibration theorem. Handbook of the fundamentals of financial decision making: Part I (pp. 241-252). doi: 10.1142/9789814417358_0013
Vakilifard, H., & Shirazian, Z. (2014). Investment horizon effect on asset allocation between value and growth strategies in Tehran Stock Exchange by wavelet analysis. Financial Engineering and Portfolio Management, 21(5), 131-148. dor: 20.1001.1.22519165.1393.5.21.8.5 [In Persian]
Yadegari, N., & Lalbar, A. (2023). Investigating the effect of managers' emotional intelligence on liquidity risk. Financial and Behavioral Researches in Accounting, 1(3), 115-129. doi: 10.30486/fbra.2023.1985653.1194