JOURNAL OF FINANCIAL MANAGEMENT STRATEGY
Year:2021 | Volume:9 | Issue:33|Papers Count:10

The purpose of this research is to answer the question whether the managers' sufficient abilities and competencies can exploit the cost-sticking positively according to the level of conflict of interest. In this regard, this research presents a model for evaluating the manager's ability and competence in cost stickiness phenomenon and empirically test it in 198 companies accepted in Tehran Stock Exchange. In this study, panel data regression and data envelopment analysis were used to estimate the manager's ability and using panel data regression to investigate the stickiness administrative and sales costs in the sample. The results showed that 3. 2% of the administrative and sales were sticky and also showed that if there was a mighty manager with a low interest conflict, cost stickiness would improve the performance of the business unit in the next year. In other words, the greater the ability and competencies of the manager and the less benefit of the conflict in the year of cost stickiness occurrence, the greater the cost stickiness impact on the unit's business performance positively, which is a solid reason for the managers to make consciously decisions.

Promoting the capabilities of national competitiveness is one of the most important factors affecting the development of stock market, thus leading to increased savings, investment opportunities and diversify the risks, and finally the continual and stable economic growth. Indexes such as basic requirements, efficiency enhancers and innovation-driven are among those ones increasing the capabilities of competitiveness of countries which in turn can make components of competitiveness. Therefore, based on this argument, the main objective of this study is to investigate the impact of the components of competitiveness on the development of stock market with an emphasis on efficiency enhancers in 30 selected countries. In so doing, not only Efficiency Enhancers Factors stage but also on the edge of entrance to the innovation-driven stage were taken into account during the years from 2006 to 2019 using Generalized Method of Moments (GMM). Research results shows the positive impact of indexes like Efficiency Enhancers, market size, Commodity/goods market efficiency, Technology Readiness Level (TRL), on the development of stock market. Rather, index such as higher education and Labor market efficiency were not significantly important on the development.

As the statistics show, in the past two decades the volume of deferred claims of the banking system has been growing. This volume of deferred claims can pose many risks to the country's banking system. Deferred claims of banks can be the source of many monetary and financial crises and have many adverse effects on banks, various economic sectors, and on a wider scale for the people of each country. As a result, identifying and providing a solution to this dilemma is extremely important. In this study, it was attempted to comprehensively study all the available sources, causes and causes of this phenomenon. Subsequently, these factors were ranked based on expert opinion in the field by modeling structural equations (partial least squares) using Smart-pls software and the effect of hidden factors on this phenomenon was identified. Based on the model presented, five hidden macroeconomic actors, the money market structure, the way banks operate, environmental factors and the system of supervision and punishment were determined. Then, after reviewing the causal factor loadings and determining their ranking, according to the factors, operational solutions to solve this problem were presented that hopefully could contribute to the banking system managers to solve this problem.

The purpose of this study is to investigate the relationship between financial statements complexity and voluntary disclosure of information and the impact of three variables, firm performance, stock liquidity status and institutional owners on this relationship. In so doing, 109 companies were selected for the period 2013-2018, panel data approach was used to test the research hypothesis and a total of 5 main hypotheses and 10 sub-hypotheses were tested. The positive and significant coefficients of complexity variable in the first four models show that the complexity of financial statements have a positive relationship with the level and speed of voluntary disclosure. That is, the greater the complexity of financial statements, managers publish more voluntary information in less time after the financial statements are published to improve the quality of reporting environment. In addition, the results of sub-hypothesis 5 to 10 show that when the stock liquidity decreases around the date of release of financial statements and when the number of institutional ownership increases, this relationship is stronger. Likewise, when the company performs poorly, this relationship become weaker.

In economic systems based on relationships, political communication is one of the most important sources of value for companies with these relationships. One of the solutions for the government to control the country's economy is to influence the enterprises. Government influence in economic units is made through the relations of politicians or state ownership. Establishing and maintaining relationships between companies and government are usually accompanied by competitive advantages. Indeed, companies with more political relationships are more likely to access capital resources and other benefits through their communications, which rely heavily on high-quality financial reporting. The goal of some corporate executives to communicate is to eliminate financial constraints with the least cost. The purpose of this study was to identify the effect of the political relations of Tehran Stock Exchange companies on the conservatism of profit and loss and the cost of debt. This study is correlational design based on multivariate regression. To test the hypotheses, a sample of 102 companies were used during the five-year period from 2013 to 2017. The findings of the research show that the political relations in companies have a negative effect on the conservatism of profit and loss. Political relationships also have a negative and significant impact on corporate debt costs.

The purpose of this study is to calculate the risk sensitivity parameters (Greeks) for the European Option by using finite difference method. There are several ways to quantify these risks, each of which is of its own advantages and disadvantages. The most important of these methods are: 1-Analytical method (solving Black Scholes partial differential equation) 2-Monte Carlo simulation method 3-Network methods 4-Finite difference method, calculating the risk sensitivity parameters in finite difference method. The complexity is less complex and the computation time is relatively low, and as the sample increases and the oscillation increases, the parameters are not disturbed. In this study, while introducing finite difference method, 10 top stock companies in 2019 were selected and the value of European trading authority and its risk sensitivity parameters were calculated by MATLAB software. Finally, numerical methods show that the results of finite difference method for calculating Option value and risk sensitivity parameters are approximations of these variables obtained from analytical method (exact method).

Contractual conditions violations leads to the transmission of bad news due to weaknesses in performance of obligations and credit status of creditors can be a factor in modifying it. The main objective of this paper is to investigate contractual obligations violations, risk aversion of managers, and remuneration based on credit status. The data of the companies listed in the Tehran Stock Exchange for the period of 2007 to 2018 have been extracted and the combined data regression model has been used to test the research hypothesis. The results of the first and second hypotheses of the research indicate that CEO compensation and the riskiness of the managers have been materially affected by contractual obligations violations. The third hypothesis of the research suggests that credit status has a significant effect on the relationship between contractual obligations violations and CEO compensation. Finally, the results indicate that credit status has a significant effect on the relationship between contractual obligations and manager risk appetite. It should be noted that the third and fourth hypotheses are only confirmed by the credit relations and rejected by the credit rating.

The stock price crash (SPC) is associated with profitability as the most important goal of investing. Any increase in the phenomenon of SPC has raised the pessimism of investors in investing in the stock market, and this can ultimately lead to the withdrawal of resources from the stock market. The SPC can be a big, negative, sudden and unusual change in stock returns that occurs in the absence of an important economic event. The purpose of this study is to review and provide an on-line SPC detection model that is consistent with the definitions and theories. In so doing, 49559 monthly specific returns of 299 companies listed on the Tehran Stock Exchange (TSE) were investigated from July 1992 to April 2018. As a result, an on-line model for SPC detection was presented based on Likelihood Ration (LR) and consistent with the agency theory. In this model, the Local Generalized Likelihood Ratio (LGLR) was used for detection of abrupt changes in the trend of specific returns. The results of this study showed that the proposed model was capable of SPC detection.

Nowadays, only efficient firms can survive in today’ s competitive world. Efficiency is thus characterized as a key component of boards’ decisions. Accordingly, this article aims at investigating board characteristics and integrated life cycle classification of the firms listed on the Tehran Stock Exchange. To this end, the financial statements of 90 firms listed on the Tehran Stock Exchange including 18 firms in five integrated life cycle stages obtained from the combination of the models developed by DeAngelo (2006) and Dickinson (2011) were examined over the period of 2012-2016. The results revealed that certain efficient characteristics of boards including CEO tenure, board independence and managerial ownership percentage exert positively significant impact on life cycle classification. Moreover, most (positive) changes are predicted to occur not only during the maturity stage but also in the growth stage, whereas the least changes (positive) are expected to happen in the decline stage followed by stagnation. Therefore, as the results of the research hypotheses reflects, it is suggested to use effective members of the board of directors (longer period of tenure, independence and ownership of the director in the company's stock) in order to grow and develop the economy and increase the value of the company, to create strategic opportunities for the company so that it can lead to changes in the corporate life cycle.

Today, in developing countries, corporate governance mechanisms are seen as a regulatory factor for the company. According to the representation theory, the first problem with representation is the existence of a conflict of interests between the shareholder and the manager. The listed companies are of a high level of disclosure quality because it can reduce the asymmetry of information that shareholders face and help them better manage it. Therefore, one of the factors that can affect the cost of corporate representation is the readability financial reporting. Therefore, based on this argument, the present study uses a structural equation modeling approach to examine the relationship between financial reporting readiness and the cost of corporate representation and the study of the effect of corporate governance moderation on this relationship. In so doing, three indicators of Flash, Gunning Fugue Index and Text Length Index were used to measure financial reporting readability of the company. The statistical sample of this study consists of 696 Year-Company accepted companies in Tehran Stock Exchange between 2012 and 2017. Following reassuring the appropriateness of the measurement and structural models of the research, the findings suggest that readability of financial reporting reduces the cost of corporate representation. In addition, the results show that corporate governance exacerbates the negative relationship between Financial Reporting Readability and Agency Cost.