Investigate the moderating effects of corporate governance mechanisms, CEO narcissism and free cash flow on the relationship between board diversity and company risk-taking.

Hemati, Hasan; Mohamadi, Mohamad; Saadati, Davood

doi:10.22034/aafie.2024.430904.1035

Investigate the moderating effects of corporate governance mechanisms, CEO narcissism and free cash flow on the relationship between board diversity and company risk-taking.

Document Type : Original Article

Authors

hasan hemati ¹

mohamad mohamadi ¹

Davood Saadati ²

¹ Department of Accounting, Parandak Branch, Non-Profit University, Parandak, Iran

² Master of Accounting,Department of Accounting, Parandak Branch, Non-Profit University, Parandak, Iran

10.22034/aafie.2024.430904.1035

Abstract

The purpose of the research: The purpose of the current research to investigate the moderating effects of corporate governance mechanisms, CEO narcissism and free cash flow on the relationship between board diversity and company risk-taking.

Research Methodology: The current research is an applied type of research according to its purpose. This research is of a descriptive correlational type and the research methodology is of a post-event type. To test the hypotheses, a multivariate regression model was used. The information obtained in relation to the research variables was entered into an Excel spreadsheet and then analyzed using Eviuse 11 software. The statistical population of this research is based on the method of systematic elimination from among all the companies accepted in the Tehran Stock Exchange, during the period of 2013 to 2022 and inculing 107 companies.

Research findings: The results of the first hypothesis showed that there is a negative and significant relationship between the gender diversity of the board of directors and the company's risk-taking. The results of the second hypothesis showed that the size of the board of directors does not moderate the negative relationship between the gender diversity of the board and the companies risk-taking. The results of the third hypothesis showed that the independence of the board moderates the negative relationship between the gender diversity of the board and the company's risk-taking. The results of the fourth hypothesis showed that the CEO's narcissism moderates the relationship between the gender diversity of the board and the company's risk-taking

Keywords

Corporate governance

CEO'

s narcissism

free cash flow

board diversity

Company'

s risk-taking