(Case study: Tehran Stock Exchange) Predicting the risk of financial turmoil using corporate governance measures

Subject Areas : business management

Mohsen Sayadipour ¹ , Amir Hortamani ²

1 - Department of Management, Dehaghan Branch, Islamic Azad University, Dehaghan, Iran
2 - Department of Management, Dehaghan Branch, Islamic Azad University, Dehaghan, Iran

Received: 2021-01-02 Accepted : 2021-02-03 Published : 2021-06-22

Keywords: Corporate Governance, Tehran Stock Exchange, financial turmoil, institutional ownership concentration, ownership rate, percentage of non-executive managers, type of audit,

Abstract :

Given that according to the theory of corporate governance agency to provide control and balance between the interests of managers and shareholders and thus reduce agency conflict, companies that have a better quality of corporate governance system, should be less with the problem of agency. The statistical population of the research is the companies listed on the Tehran Stock Exchange during the years 1393-1397 that have the necessary conditions and according to the limitations defined in the research of companies with the conditions of 150 companies in the form of 678 views. Turned. Then, an independent variable with dimensions (institutional ownership concentration, ownership rate, high percentage of non-executive directors and type of auditor) in relation to companies' financial turmoil was analyzed through. results indicate that institutional ownership focus, ownership rate And the type of auditor is related to financial turmoil, the financial turmoil of the company decreases. There is no significant relationship between the percentage of non-executive directors in the board and the prevention of financial turmoil. , it is necessary to reduce the percentage of institutional shareholders in the ownership structure of companies because The existing definitions of institutional ownership in Iran are different from the so-called definitions abroad.