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

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

Investigating the effect of management stability and profit stability on systematic risk with the moderating role of risk management

Document Type : Original Article

Authors
Mohamad Mohamadi 1
Hassan Hemati 1
Shakila Aghaei 2
1 Assistant Professor, Department of Accounting, Parandak Non-profit University, Saveh, Iran
2 . Ph.d in Accounting, Parandak Non-profit University, Saveh, Iran
10.22034/aafie.2025.485589.1057
Abstract
In a situation where the risk fluctuations in the capital market are high, the performance of companies can decrease under the influence of these market risks. Olson and James (2017) and Ricardo et al. (2021) have shown in their research that an increase in risk in the capital market causes an increase in agency costs and differences between managers and investors in investment decisions. This can lead to profit management in financial statements and reduce the quality of financial reporting. Therefore, dealing with factors affecting companies' risk; It can help clarify this issue. The main purpose of this research is to investigate the effect of management stability and profit stability on systematic risk, emphasizing the role of risk management of companies listed in the Tehran Stock Exchange. In this regard, the influence of management stability and profit stability as independent variables; Systematic risk is the dependent variable and company size variables, board independence, managerial ownership, institutional owners, asset return rate, operating cash ratio, company life and company growth, and sales efficiency are also considered as control variables. The statistical sample of the research included 132 companies. The research method is descriptive correlation with applied approach and data analysis method is done through correlation test and multiple regression. The results of the research showed that management stability and profit stability have an inverse and significant effect on the company's systematic risk, and profit management strengthens this inverse relationship.
Keywords
Management sustainability
profit sustainability
systematic risk
risk management
Iranian capital market
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  • Receive Date 26 October 2024
  • Revise Date 30 April 2025
  • Accept Date 30 April 2025
  • Publish Date 22 May 2026