Board Capital and Value Creation

Subject Areas : مدیریت

Mohsen  moharram khani ¹ (M.Sc., Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran)
Mehdi  Beshkooh ² (Assistant Professor, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran (Corresponding Author))

Received: 2019-12-16 Accepted : 2019-12-16 Published : 2019-11-22

Keywords: Value Creation, Board Capital, Human Board Capital and Social Board Capital,

Abstract :

The purpose of this study was to investigating the relationship between board capital and value creation. Statistical population study is accepted companies at Tehran Stock Exchange. Based on conditions considered for sampling, selected 123 companies by systematically eliminated during the years 1391 to 1395, and after collecting data, test the hypotheses using by multiple regression for panel data. In this study, board capital Was divided human board capital that consists of four components of education, expertise, professional experience (in industry) and prestige, and social board capital that consists of two components of external and internal. Also, use Tobin's Q as An indicator for value creation. The results show that among the components of human board capital, professional experience (in industry) has a positively and significantly relationship, and prestige has negatively and significantly relationship with value creation. In addition, among the components of Social board capital, External Social Capital has negatively and significantly relationship with value creation. There was no significant relationship was observed between human board capital and social board capital with value creation. While, there is positively and significantly relationship between board capital and value creation