Wide spread presence of institutional investors as a group of investors for corporate decisions and the behavior of stock prices through massive financial sources have important implications. This is a regulatory activity that investors do, emanate. Institutional invest More
Wide spread presence of institutional investors as a group of investors for corporate decisions and the behavior of stock prices through massive financial sources have important implications. This is a regulatory activity that investors do, emanate. Institutional investors use their ability to monitor and manage corporate performance that is a function of their investment. The goal of this paper is examine the relationship between institutional investors and stock price synchronicity in listed companies in Tehran Stock Exchange. Also in this research institutional investors had classified into two groups, in terms of motivation and desire to control and monitor companies: stable (long-term) and transient (temporary). They examined the relationship of stock price synchronicity. Price synchronicity is degree of market and industry information that reflected in the stock price. And its evaluation scale is systematic risk divided by non systematic risk.To examine this, 50 companies listed on the Stock Exchange during the years 1386 to 1390 as sample were chosen. And to test the hypothesis is used from pooled data (panel data). The results showed a significant negative correlation between institutional investors and stock price synchronicity. Also the findings show a significant negative correlation between the stability of institutional investors and stock price synchronicity and there is significant positive relationship between transient institutional investors and stock price synchronicity.
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This paper assessed the impact of political connection and financial misstatement on agency costs especially in politically connected firms. Agency cost is measured using the ratio of operational expenses to operational sales revenues index. Also, politically governance More
This paper assessed the impact of political connection and financial misstatement on agency costs especially in politically connected firms. Agency cost is measured using the ratio of operational expenses to operational sales revenues index. Also, politically governance affiliation in either board structure or ownership structure is considered as a proxy of political connection. In addition, managers' multi-period incentives to misstate earnings in financial reporting are based on accruals earnings management. Research population using screening method consists of 204 firms listed in Tehran Securities & Exchange over 10 years period during March 2013 to March 2023. Research hypotheses investigated through multivariate regression models using panel data with fixed effect and generalized least squares method by E.Views software. Empirical findings documented that political connected firms have high level of agency costs significantly. Also, more managerial incentives to misstate earnings in financial reporting lead to increase agency costs level significantly. In addition, high level of earnings misstatement in politically connected firms caused to upward the agency costs level; In fact, these events enhance the interest conflict resulting from agency problems. So, it is aligned to political agency hypothesis, according to which the managers in politically connected firms, provoke agency conflicts due to opportunistic motives and harmful consequences of political connection. Other findings showed that the level of financial reporting misstatement and agency costs in politically connected firms has a significant difference compared to firms without political connection. This indicates the harmful consequences of political connections in Iran.
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Trade credit is an important element of short-term financing for companies. By providing trade credit, companies are putting themselves at risk because it is likely that the buyer will not use the resources properly. Also, increasing competition in domestic and global m More
Trade credit is an important element of short-term financing for companies. By providing trade credit, companies are putting themselves at risk because it is likely that the buyer will not use the resources properly. Also, increasing competition in domestic and global markets has required companies to better identify their cost behaviour. Therefore, in this study, the moderating effect of agency problem on the relationship between trade credit and cost stickiness on the Listed Firms in Tehran Stock Exchange has been investigated. For this purpose, the financial statements of 167 companies in the period 2010 to 2019 have been collected. This research is a quantitative research and the research method is correlational and multiple regression analysis with combined data was used to test the hypotheses. The results show that using all three criteria of trade credit, there is no significant relationship between trade credit and cost stickiness. In addition, the results show that among the indicators of agency problem, the effect of capital expenditures on the relationship between the third criterion of trade credit (ratio of accounts payable to purchases) and cost stickiness is confirmed. However, no evidence was found for the effect of acquisition ratio on the relationship between the first criterion of trade credit (ratio of accounts payable to cost of goods sold) and the second criterion of trade credit (ratio of accounts payable divided by sales) and cost stickiness.
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