Agency Theory

Open Access Article

1 - EFFECTS OF FINANCIAL INFORMATION TRANSPARENCY ON INVESTOE BEHAVIOR IN TEHRAN STOCK MARKET
Maryam Khalili. Samad Behroozizad

For almost a decade the transparency of financial information has beenan important influence on investors, investment strategies. An increasingamount of research shows that the availability and quality of companies,financial information are tow major factors influencing More

For almost a decade the transparency of financial information has beenan important influence on investors, investment strategies. An increasingamount of research shows that the availability and quality of companies,financial information are tow major factors influencing investorinvestment decisions (Young, 2003). Young has found that after financialscandals of Enron Oil Company in U.S.A poor corporate governanceresulting in a lack of financial information transparency has shakenpublic confidence in stock market (Young, 2003).This study analyzed the effects of financial information transparency,which is the fifth principle of the six principle of corporate governance,on investor behavior and it present a framework for evaluating of investorbehavior by concepts of ownership structure, financial transparency andboard structure.In this study, the researcher tried to present an appropriate literature inthe field of corporate governance and to determine the effects ofconducting of the fifth principle (principle of disclosure andtransparency) on investor's behavior in Tehran Stock Market by carryingout researches such as those which were conducted in developedcountries.Data of this study was collected by a survey instrumentcontaining 19 closed-ended questions which answered by investors whohave experience buying corporation share from the Tehran StockExchange, and by statistical analyzing of these answer the researcherinspects the effects of Financial Information Transparency on investorbehavior.The different statistical models which used for examining ofhypothesis are descriptive statistics, correlation analysis and conductingstatistical examinations showed that Financial Information Transparencyhas a positive correlation with investor behavior and improving FinancialInformation Transparency lead to increasing of shareholders, confidencein Tehran stock market and increasing of their investment in stockmarket. Manuscript profile

Open Access Article

2 - Tax Avoidance and Agency Theory: Evidence from Tehran Stock Exchange (TSE)
Shokrollah Khajavi Amir Sarvestani

This research, from an agency theory perspective, evaluates the influence of agency costs on the tax avoidance of firms. Because tax aggressiveness is a risky action and can cause loss of shareholders, risk averse firms do not follow such actions. However, the companies More

This research, from an agency theory perspective, evaluates the influence of agency costs on the tax avoidance of firms. Because tax aggressiveness is a risky action and can cause loss of shareholders, risk averse firms do not follow such actions. However, the companies that represent high agency costs are expected to be a high degree of risk and take an aggressive approach about paying tax. Thus the level of agency costs of firms can influence their tax avoidance. The results obtained in this study, justify this statement. To empirically test of this matter, 138 companies in the period 2006 to 2014 is used. Obtained results support the positive influencing of agency cost on the tax aggressiveness. These findings contribute toward a better understanding of agency theory on the context of corporate tax aggressiveness and show how agency problems affect corporate tax approach. Manuscript profile

Open Access Article

3 - Examining the Effect of Corporate Governance Mechanisms on Efficient working Capital Management
محسن دستگیر مهسا هنرمند

One of the important issues of accounting and financial management literature is companyownership, because this belief that the mechanisms of corporate governance are hiring theabilities, which have straight effect on the abilities of investors to make the management us More

One of the important issues of accounting and financial management literature is companyownership, because this belief that the mechanisms of corporate governance are hiring theabilities, which have straight effect on the abilities of investors to make the management usethe existed resources in organization effectively. Working capital management is one theother part which plays a critical role in management structure of a company. Ineffectivepolicies of working capital management can be followed by a weak corporate governance andresult in reducing the wealth of stockholders. This research includes influential analysis andactions of corporate governance on effectiveness of working capital management betweenlisted firms of Tehran Stock Exchange. To do so, variables of percent of institutionalownership, concentration of institutional ownership, size of board, independence of board,and segregation the tasks of chairman and vice chairman as mechanisms of corporategovernance and variables of duration of accounts receivable, duration of keeping inventory,duration of accounts payable, and cash flows of company as the measures of effectiveness ofworking capital management are taken to account. The required data were gathered annuallyduring 2006-2011.According to econometric propositions, the regression method based onpanel data based on constant effects for all hypotheses of research is chosen and analysis ofdata followed .the findings of this study indicate that corporate governance plays some role inimproving the efficiency of working capital management. Manuscript profile

Open Access Article

4 - The effect of cash holding adjustments on managerial entrenchment
Ataollah Mohammadi Nasrin Khodabandehlu

The first problem with the agency is the existence of a conflict of interests between the shareholder and the manager that this conflict of interest may even lead to information asymmetry. That is, the shareholder seeks to reach the highest level of investment value and More

The first problem with the agency is the existence of a conflict of interests between the shareholder and the manager that this conflict of interest may even lead to information asymmetry. That is, the shareholder seeks to reach the highest level of investment value and the manager is also looking to increase his wealth according entrenchment theory. The purpose of this study was to investigate the effect of cash holding adjustments and management entrenchment. This research is an applied research in terms of purpose and is one of the descriptive-correlative researches. The data of 118 companies listed in Tehran Stock Exchange for the period of 2009 to 2016 were collected. In this study, for the purpose of measuring management management, two indicators of CEO duality and manaders's shareholding percentage have been used by for entrenchment. The results show that cash holding adjustments affect managerial entrenchment. The speed of cash holding adjustments is also influenced by management fronts. In fact, the results showed that the moderation and the rate of holding of cash on managerial entrenchment in Tehran Stock Exchange is influential. Manuscript profile

Open Access Article

5 - Studying the Connection between the Agency Theory of Active Companies & Tehran Stock Exchange
دکتر رمضانعلی رویایی دکتر فریدون رهنمای رودپشتی محمدرضا عبدلی

This research studies the 4 dimensions of the “Agency Theory” to understand theconnection between the Agency Theory of active companies & Tehran stockexchange; And, it assays the effects of it on agency theory factors such asmanagement interest and inatt More

This research studies the 4 dimensions of the “Agency Theory” to understand theconnection between the Agency Theory of active companies & Tehran stockexchange; And, it assays the effects of it on agency theory factors such asmanagement interest and inattentive workers. The researcher initially gives anintroduction on the work done in the past and then presents the theoretical bases of theresearch. The research has been done through the experimental research method andquestionnaires were handed out to 209 companies of Tehran stock exchange whichwere the sample society. The results have shown that there is no connection betweenmanagement interest and the factors of ambiguity avoidance, male chauvinism andindividualism. But, there is a connection between inattentive workers and the factorsof ambiguity avoidance, male chauvinism and individualism. Manuscript profile

Open Access Article

6 - The relationship between managements’ cultural dimensions and agency base model of firms’ dividend policy
فرزین رضایی کاظم گلباغی

Introdution and aim: The agency model of dividends maintains that dividend payout help address the agency problems between managers and shareholders by distributing cash at the discretion of managers and forcing firms to interact more frequently with capital market. but More

Introdution and aim: The agency model of dividends maintains that dividend payout help address the agency problems between managers and shareholders by distributing cash at the discretion of managers and forcing firms to interact more frequently with capital market. but the main problem is the detecting of  effective components for adopting  a dividend policy that one of them is the managements’ culture. this research aimed to clarify the relationship between managements’ cultural dimensions and agency base model of firms’ dividend policy. Methodology: The research type is experimental and nature of research is descriptive-survey. The information related to managements’ cultural dimensions is collected by questionnaire of  hofstede. In order to measuring dividend policy, we gathered Data from rahavard novin data. Variables are 3 index including D/S،  D/CF and D/NI and agency cost is studied by leverage. Hypothesis was tested by 73 samples during 2002-2012. Finding & Conclusion: Findings indicate that in the all of dividened policy variables used, Uncertainty avoidance index and power distance index have a weak negative relation and masculinity index has a weak positive relation to dividened policy. while, there is no relationship between Individualism and dividened policy. meanwhile agency cost, has adjusted the relationship between uncertainty avoidance and power distance with dividend policy when  D/S  and  D/CF  were used. finally, Agency cost has no effect on the adjustment of the relationship between Individualism and Masculinity with dividened policy. Manuscript profile

Open Access Article

7 - Investigating the Nonlinear Relationship between CEO Power and Capital Structure
Maryam Aslani Manarebazari Seyed Reza MirAskari gholamreza mahfoozi

Nowadays in the world of business, one of the issues that companies are facing is making decision about capital structure. After the Industrial Revolution, separation of owners and management in the companies was raised. This issue reflects the importance of managerial More

Nowadays in the world of business, one of the issues that companies are facing is making decision about capital structure. After the Industrial Revolution, separation of owners and management in the companies was raised. This issue reflects the importance of managerial power as the source of important decisions in choosing the appropriate capital structure. This paper investigates the nonlinear power of CEO and capital structure of 100 companies accepted in Tehran Stock Exchange during the period of 2011-2011 based on the agency theory. The power index of the CEO has been constructed through the principle component analysis. The three dimensions of CEO power (Expert Power, Ownership Power and Referent Power) are considered as constructing the variable of executive power. We used econometric approach and panel data models in testing the hypothesis. The result of this paper showed that there is a parabola- shape association between CEO power and leverage; meaning that there is a nonlinearity relationship between these two variables. Manuscript profile

Open Access Article

8 - The moderating effect of social responsibility on the relationship between investment and performance with emphasis on factors based on agency theory
farhad fazilat hashem valipour shadi shahverdiani

The main purpose of this research is to investigate the effect of social responsibility on the relationship between investment and performance of firms and the managerial compensation incentives, stakeholder engagement and government ownership as factors based on the ag More

The main purpose of this research is to investigate the effect of social responsibility on the relationship between investment and performance of firms and the managerial compensation incentives, stakeholder engagement and government ownership as factors based on the agency theory. The research method is quasi-experimental and the number of 127 firms in Iran Stock Exchange for the period of 1390 to 1396 were selected as the sample of study. Regression analysis based on panel data was used to test the hypotheses. Research results show that social responsibility reduces the sensitivity of investment to performance. Also, the effect of this variable on the sensitivity of investment to performance is stronger for firms with weak managerial compensation incentives and higher stakeholder engagement, but weaker for government companies. Manuscript profile

Open Access Article

9 - Validation of Investment Efficiency Models Based on Agency Theory, Information Asymmetry, Managerial Entrenchment and Firm value maximization
Vahid Taghizadeh Khanqah younes badavar nahandi Aliasgar Mottagi Houshang Taghizadeh

In a complete market in which information asymmetry does not exist between managers and external investors, firms can optimally invest in profitable projects. However, when information asymmetry exists, firms may be confronted to face financing constraints and cash surp More

In a complete market in which information asymmetry does not exist between managers and external investors, firms can optimally invest in profitable projects. However, when information asymmetry exists, firms may be confronted to face financing constraints and cash surplus which prevent them from undertaking profitable projects, resulting in an under and over investment. Therefore, in order to achieve an optimal investment efficiency model and detection of over and under investment, the empirical test of investment efficiency models examined in Tehran Stock Exchange. In this research, different models of investment efficiency extract and examined from different economic environments and compared with the native model presented, in order to explain their explanatory power. For this purpose, the origin and economic implications of investment efficiency are used to validate the models. A model is convenient when that consistent with financial and accounting theories. The financial reporting quality, free cash flow, financial constraints, economic value added, and firm value are issues that are tested in relation to investment efficiency models. For this purpose, 180 companies are used for the period of 2007-2017. The findings showed that free cash flows and financial constraints has a positive effect on over and under investment. The findings also suggested that the investment efficiency was positively affected by the economic value added and firm value, but this effect was not confirmed through all investment efficiency models. The results showed that the test of all hypotheses was confirmed based on native model of investment efficiency. Manuscript profile

Open Access Article

10 - The impact of family ownership on capital structure on accepted company in TSE(based on agency theory)
Hossein Fakhari Elham Fasihe

Ralationship between  the type of ownership and capital structure is such a controversial issue in financial affairs and  accounting. also pervasiveness of family ownership in new tangled economies in recent years makes surveys necessary in this respect.accord More

Ralationship between  the type of ownership and capital structure is such a controversial issue in financial affairs and  accounting. also pervasiveness of family ownership in new tangled economies in recent years makes surveys necessary in this respect.accordingly,this study intends to initially the effects of family owner ship on capital structure of companies accepted in Tehran exchang(based on agency theory). Then factors in fluencing this relation ship is examined.in order to meet the above questions the related data of 22 companies accepted in Tehran exchang over the years 1387-1391 was collected and studied by mixed analysis. Research findings shows that domestic  owner ship  has positive  and meaning ful effect  on the  accepted  firms capital structure inTehran stock Exchange. Also growth and profitability has positivee and meaning ful coordination effect  on the relationship between  familyownership and capital structure Iran capital market. Manuscript profile

Open Access Article

11 - Investigation the relation between Free cash flows and Tobin’s Q ratio with Management compensation plans in companies listed in Tehran Stock Exchange
Azita Jahanshad Mahshid Alam Ahrami

Conflicts of interests may arise from managers’ lack of incentive for shareholders’ wealth maximization. For solving this problem and reducing agency costs motivational strategies should be used for managers. One of these strategies is management compensatio More

Conflicts of interests may arise from managers’ lack of incentive for shareholders’ wealth maximization. For solving this problem and reducing agency costs motivational strategies should be used for managers. One of these strategies is management compensation plans and another strategy is ownership of mangement in company.This paper investigate the relation between Free cash flows and Tobin’s Q ratio with Management compensation plans in companies listed in Tehran Stock Exchange.  The purpose of this research is to answer this question that whether management compensation plans and their ownership in company leads to improvement of a company’s performance? Answering these questions helps companies and shareholders to find that whether these plans can increase their value and wealth or not. In this research Free cash flows and Tobin’s Q ratio criteria are used for performance evaluation. For this purpose data of 112 companies listed in Tehran Stock Exchange from 2006 to 2011 was studied. Hypothesis testing analysis was conducted by the use of statistical methods of Pearson’s correlation analysis, regression and variance analysis. The findings show that there is a positive and significant relation between management compensation and both free cash flows and Tobin’s Q ratio. Therefore increase in management compensation leads to improvement of a company’s performance, but percentage of board of directors’share has no significant relation with none of Free cash flow and Tobin’s Q ratio. Manuscript profile

Open Access Article

12 - The Interactive Role of an Auditor's Expertise in the Relationship between Abnormal Transactions with Biased People and Financial Statement Fraud: Testing Agency Theory
Amirali Bandarian Saeid Emami Dehcheshmeh Khatereh Kargarpur

Purpose: The objective of the present study is to review the interactive role of an auditor's expertise in the relationship between abnormal transactions with biased people and financial statement fraud with an emphasis on testing the agency theory in Tehran Stock Excha More

Purpose: The objective of the present study is to review the interactive role of an auditor's expertise in the relationship between abnormal transactions with biased people and financial statement fraud with an emphasis on testing the agency theory in Tehran Stock Exchange.Methods: With respect to the type of data in this research, logistic regression has been used. The statistical sample consisted of 118 corporations from 2014 to 2021, which were chosen by systematic removal.Results: The results showed that segments of abnormal transactions with biased people increase financial statement fraud. Moreover, an auditor's expertise moderates the intensity of positive relationships between abnormal transactions with biased people and financial statement fraud.Conclusions: With regard to the agency theory, the motivation behind abnormal transactions with biased people is that they want to seize the corporation's capital and that the managers distort financial statements in order to conceal the truth. Furthermore, since the specialist auditors monitor a great portion of the industrial corporations, they are of an expertise and experience above other accountants; therefore, they are more capable to detect financial statement deviation and fraud in terms of abnormal transactions with biased people. Manuscript profile

Open Access Article

13 - Using A Multivariate Statistical Method of Factor Analysis and Grounded Theory to Review the Theory of Agency in Developing Countries (A Case Study of Iran)
Mirza Mohammadi Rahmatollah Mohammadi pour Ghodratallah Talebnia Negar Khosravipour

10.22034/amfa.2021.1899687.1423

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Open Access Article

14 - According to Agency Theory and Neoclassical Theory; New Ownership and Diversity of Public Sector Companies in Corporate Life Cycle
Abdollah Tavasoli Parviz Saeidi Bahram Biglari

10.22034/amfa.2018.539131

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Open Access Article

15 - Investigating the Role of Non-Financial Information Analysis and Risk- Return Analysis along with Financial Information in Increasing the Efficiency of the Stock Portfolio of Banks
Alishir Taheri Morteza Shafiee Fariborz Evazzadeh Fath

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Open Access Article

16 - The Effect of Unusual Operating Cash Flows on Earnings Sustainability in the Listed Companies of Tehran Stock Exchange
Hossien fakhari Javad Mohammadi Mohsen Hasanataj Kordi

Corporate executives may reduce the fluctuation of profits by using unusual operating cash flows and improve its sustainability. The consequences may be the creation of information that can be far from economic reality and making false economic decisions for stakeholder More

Corporate executives may reduce the fluctuation of profits by using unusual operating cash flows and improve its sustainability. The consequences may be the creation of information that can be far from economic reality and making false economic decisions for stakeholders. Accordingly, the purpose of this study is to investigate the effect of unusual operating cash flows on earnings sustainability in listed companies at Tehran Stock Exchange. Accordingly, the data from 93 listed companies at Tehran Stock Exchange have been investigated during the period from 2010 to 2015 by multivariate regression analysis based on combined data analysis. Before testing the hypotheses, the data were analyzed to have an acceptable reliability and the results showed that all the variables were stationary. The results of regression estimation showed that unusual operating cash flows have a positive and significant effect on earnings sustainability. These findings further emphasize the fact that executives continue to manipulate profits through operational activities Manuscript profile

Open Access Article

17 - Corporate Social Responsibility and Compare Financial Statements
Babak Jamshidinavid Maryam Mansouri

10.30495/afi.2021.1927769.1019

Provision and presentation of quality information is a prerequisite for decision making by stakeholders of business units. One of the features of this information is having the ability to compare with other peer companies, as one of the quality features of this informat More

Provision and presentation of quality information is a prerequisite for decision making by stakeholders of business units. One of the features of this information is having the ability to compare with other peer companies, as one of the quality features of this information. Social responsibility can affect the qualitative characteristics of financial reporting. Therefore, the purpose of this study is to investigate the relationship between corporate social responsibility and the ability to compare financial statements as one of the most important features of financial reporting. To achieve the purpose of the study, the composite data of 114 companies listed on the Tehran Stock Exchange in the period 2010-2020 were analyzed using multivariate linear regression. Findings showed that there is a positive and significant relationship between corporate social responsibility and the ability to compare financial statements. Based on these findings, it can be said that social responsibility obliges company managers to adhere to their ethical commitments and provide accurate and quality information to their stakeholders. To do this, they use quality and similar standards and procedures that help reduce information asymmetries at the company level, employees, stakeholders, peer companies and even the capital market. Manuscript profile

Open Access Article

18 - Future studies the role of factors determining of managers' fraud through the use of the fraud diamond model
Ehsan Saadati Shohreh Yazdani Mohammadhamed Khanmohammadi Davoud Gorjizadeh

10.30495/afi.2023.1981633.1204

Purpose: The present study aims to conduct future research of the role of the determinants of managers' fraud, focusing on the diamond model of fraud.Methodology: To measure the types of fraud and indicators related to the diamond model of fraud from the Likert scale qu More

Purpose: The present study aims to conduct future research of the role of the determinants of managers' fraud, focusing on the diamond model of fraud.Methodology: To measure the types of fraud and indicators related to the diamond model of fraud from the Likert scale questionnaire which contains three parts (demography, types of fraud, and elements of the fraud diamond model) and 74 declarative sentences were used. Furthermore, SmartPLS Software and the structural equation modeling technique with the partial least squares approach were used to test the hypotheses.Findings: The opportunity side is considered as an influential component on different types of fraud. Moreover, the 'capability' side has an effect on managers' fraud through social engineering, misuse of resources (assets), and earning management with opportunistic purposes, and 'rationalization' is the side that influences on the components of non-application of methods in accounting standards by managers and misuse of resources. Additionally, 'pressure' (motivation) is the side that affects the component of fraud management through social engineering. the sides of the fraud diamond model are only efficient when wich is a matter of separation of management and ownership and no effective processes for the supervision of managers.Originality / Value: In the current research, it was noted that the reason for the occurrence of four types of fraud indicators in Iran What was it based on. The added value of this research is that in most of the articles conducted by the researchers, attention was paid to the fraud triangle model. Manuscript profile

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