The Association between Management turnovers With Default Risk and Corporate Performance

Subject Areas : Journal of Investment Knowledge

Mohammad Reza  Rostami ¹ (Assistant Professor of Faculty of Management, Alzahra University)
Mahdi  Abbasi Asl ² (Master of Financial Management, University of Economic Sciences)

Received: 2015-01-17 Accepted : 2015-04-05 Published : 2015-04-05

Keywords: Management turnover, Default risk, Corporate performance,

Abstract :

Risk and return of the firms are most important investing criteria in capital market so investors who have more pay attention to this criteria, are successful. Changing management company's cause different decisions in financial area of firms ,and therefore, it has an effective impact on risk and returns of the firms. In this study, the relationship between a company's management to change the default risk and capital market performance of companies in Tehran Stock Exchange for the period 1385 to 1390 was in total, 618 observation periods was used to measure the performance of three criteria: return on assets, return on equity, economic value added was. Statistical methods used in this study is multiple regression method. The results show that the change in corporate management with respect to default risk but there is a direct relationship between the change in corporate management with the three criteria to evaluate the performance efficiency of assets, return on equity economic value added, to reverse