Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment

Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment

The relationship between board errors and the value of cash assets of companies listed on the Tehran Stock Exchange

Document Type : Original Article

Authors
seyed hesam vaghfi 1
Razie Mohseni Fardd 2
ZAHRA MORADIYAN 3
nasrin choghane 4
1 Assistant Professor, Department of Accounting, Payame Noor University, Faculty of Management, Economics and Accounting, Tehran, Iran.
2 Payame Noor University, Faculty of Management, Economics and Accounting, tehran, Iran.
3 Accounting. Payame Noor University of Mashhad
4 Payame Noor University, Faculty of Management, Economics and Accounting, Mashhad, Iran.
10.22034/aafie.2022.149526
Abstract
In agency relations, the goal of the owners is to maximize wealth and therefore in order to achieve this goal, they monitor the agent's work and evaluate his performance. In this study, the relationship between board errors and the value of the company's cash assets The securities listed on the Tehran Stock Exchange have been examined. This research is in the field of positive accounting research and based on real information in terms of quasi-experimental and post-event research methods. The statistical population of the research is the companies listed on the Tehran Stock Exchange. In order to test the research hypotheses, a sample of 148 companies was selected during the years 2012-2021 . In this research, multivariate linear regression model has been used to test the hypotheses and combined data method and Eviews and Stata software package have been used to perform the necessary analyzes. The results of the hypothesis test showed that between the errors of the board (Dual role of CEO) and the value of cash assets have a significant effect, also the independence of the board has a significant effect on the relationship between board error (appointment of a dual role manager) and the value of cash resources. The results show that public ownership has a significant effect on the relationship between board error (appointment of a manager with a dual role) and the value of cash resources.
Keywords
Board errors
value of cash assets
board independence
government ownership
dual role of manager
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  • Receive Date 15 April 2022
  • Revise Date 05 May 2022
  • Accept Date 09 May 2022
  • Publish Date 20 February 2022