The Effect of the Board Charactristics on Relationship between Institutional Investors Inattention and Financial Restatement
Subject Areas : Journal of Capital Market Analysis
Jalil Amini
1
,
زینب رضائی
2
*
,
علی تامرادی
3
1 - PhD student, Financial Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran.
2 - استادیار، گروه حسابداری، دانشگاه آزاد اسلامی، واحد شوشتر، شوشتر، ایران.
3 - Instructor, Department of Accounting, Ramhormoz Branch, Payame Noor University, Ramhormoz, Iran
Keywords: institutional investors inattention , financial restatement, board charactristics,
Abstract :
The general purpose of the current research was to investigate the effect of institutional investors inattention on the restatement of financial statements with emphasis on the moderating role of the characteristics of the board of directors of companies. In order to test the hypotheses of the research, the information of 150 companies from the stock market of Iran has been used in a period of 7 years (from the fiscal year 2015 to 2021). For the statistical analysis of the research data, the software version 9 was used. In order to test the hypotheses, multiple regression models were performed using the panel data method. This means that the increase in institutional investor inattention increases the restatement of financial statements. Also, the results of the research showed that the independence of the board of directors and the financial expertise of the board of directors have a significant decreasing effect on the relationship between the institutional investors inattention and the restatement of financial statements of companies. This means that the increase in the presence of non-commissioned people in the board of directors and the presence of people with financial expertise in the board of directors will decrease the positive relationship between the institutional investors inattention and the restatement of financial statements of companies. Also, the results of the research showed that the size of the board of directors does not have a significant effect on the relationship between the institutional investors inattention and the restatement of financial statements of companies.
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