JOURNAL OF FINANCIAL MANAGEMENT STRATEGY
Year:2019 | Volume:7 | Issue:1 (24) |Papers Count:8

This study investigates how ERM (Enterprise Risk Management) affects the relation of managerial ability and investment efficiency. According to theory, investment efficiency increases when that investment inefficiency decreases and ERM Techniques along with managerial ability increases investment efficiency and decreases investment inefficiency. Thus, the hypothesis predicts that ERM Techniques play effective roles on the relation between management ability and capital investment efficiency and decrease over-or under-investment. The variables include managerial ability as independent variable that is measured by the methodology developed in Demerjian et al. (2012) to estimate managerial ability, and over-or under-investment as dependent variables that is measured by Gan (2015) and Biddle et al. (2009). Also ERM Techniques are measured by Gordon et al. (2009). The sample includes 106 Tehran Stock Exchange (TSE) firms at the period from 2004 to 2017. The findings conclude that ERM Techniques alone have no effect on relation between managerial ability and capital investment efficiency.

It has been proved that different economies are disintegrated in terms of the optimal asset pricing model structure. Here we consider six different combinations of Fama-French and Carhart models, in terms of inclusion of momentum effect, differing effects for small and large firms and value weighting the factor components in explaining the average returns of 9 sets of LHS portfolios, some of which are specifically focused on large firms. Both time-series regression and Fama-MacBeth approach (full and rolling samples) in cross-section regression procedures have been used for testing the models. It is found that momentum’ s effect is significant in many of the spectra of test portfolios. Market factor’ s explaining power which is significant almost solely for return SD sorts, is most pronounced when calculated based on full samples. Among all value-growth effect variants, explaining power of bHMLw has been significant. Finally, RHS portfolios corresponding to size effect have demonstrated significant explanation for average returns, only after deletion of the data from year 2017-the last 12 months of the whole 90-month research data.

Given the growing complexity of financial markets and the specialization of investment, financial market participants need tools, methods and models to choose the best investment. This has led to a variety of models for capital asset pricing and calculation of stock return forecasting. For this purpose, the researcher uses a theoretical matrix of the most widely used and most effective variables of the predicted model for accurate analysis of more data and calculation of the final model. Also, by using the multivariate correlation and regression analysis and the parent test, we compared the predicted model in the corporate life cycle. The results of 88 companies during the period of 2007 to 2016 in Tehran Stock Exchange show that the distress risk in the experimental pricing model explains the average return on a portfolio based on momentum. The rate of return expected in the aftermath of the financial risk mitigation has decreased. Also, in healthy firms, the return on a portfolio consisting of a losing company is less than the return on a portfolio of winning shares. On the other hand, the results show that among the various stages of the company's life cycle, the average return on the portfolio of portfolios is higher for the valuation of capital assets at the maturity stage. Finally, the new adjustment modality can be explained by 59% of variations of the variables dependent on the independent variables of the model which has a higher coefficient than previous models. It indicates the high power of the conjunction and the higher explanatory power of the new model.

Companies with customer concentration have high business and liquidity risk, because major customer loss can lead to a significant reduction in cash flows from suppliers. Hence, managers tend to increase the amount of additional cash to reduce their business risk. Lower dividend payout in the company can reduce the cash outflow as an intra-organizational strategy and create additional cash flows for the company. The main purpose of this research is to investigate the effect of customer concentration on dividend payout policy in listed companies in Tehran Stock Exchange. To test the hypotheses of the research, multiple linear regression model and logit model have been used. To measure the company's dividend payout policy from the cash dividend ratio to net earnings and the dummy variable of the payment or non-payment of dividends, and to concentration on customer, of three measurement major sales ratios (sales above 10%) to sales total, the Herfindahl– Hirschman Index, and Indicator variable of existence or absence of major customer in the company has been used. The statistical population of this research includes 140 active companies in Tehran Stock Exchange during 2009-2016. The results of the research indicate that the concentration on customer has a negative and significant effect on dividend payout policy. In other words, in companies with concentration on major customer, the percentage of dividend payments and the probability of cash dividend payout are lower.

Personal financial management behavior mentions how a person reacts when encounters financial events. Decisions of a person in different conditions influence his present and future life as well as economy of society. This study is about personal financial management, and examining factors affecting personal financial management behaviors among Iranian youth is its purpose. To do this, relationships among financial attitude, financial knowledge, external locus of control and financial management behaviors was examined. This study is an applied and descriptive research. Data gathering is based on a questionnaire. The research model is structural equation modeling and examined by Partial Least Square (PLS) method. The findings suggest that, financial attitude and financial knowledge have statistically significant and positive effects on financial management behaviors. In addition, based on our third hypothesis, the moderated role of financial knowledge on the relationship between financial attitude and financial management behaviors is approved by results. The results do not support for the relationship between external locus of control and financial management behaviors and the indirect effect of external locus of control on the relationship between financial knowledge and financial management behaviors.

The management of financial portfolios or funds constitutes a widely known problematic in financial markets which normally requires a rigorous analysis in order to select the most profitable assets. In this field designing profitable automated trading systems, which could trade dynamically and make appropriate decisions is significantly important. Technical analysis is a popular method to predict future price movement. One of the deficiencies of technical analysis is the lack of attention to risk of investing and portfolio management. This study has developed automated portfolio management systems using technical analysis indicators to find uptrend price movements and used GARCH and FIGHARCH models to consider the risk in the decisions. The developed model has assayed in one year time scope. The results illustrate that using FIGARCH models has made superior return to risk ratio. Also the ratio shows that the developed models are significantly better, comparing the other investing methods such as Markowitz model and buy and hold strategy.

The purpose of this research is to examine the effect of ownership concentration in non-family firms and family firms (both with a family and nonfamily CEO) and also the impact of family ownership on the firm performance. The research sample includes 125 companies Listed in Tehran Stock Exchange in the period of 2008-2016 and the regression models are estimated using panel data. The results showed that ownership concentration have no effect on performance (both of return on assets and Tobin-q) in family firms (with family and nonfamily CEO) and non-family firms. The research result also indicates family firms with family CEO and family firms with non-family CEO has not any significant effect on performance.

In corporate finance literature, various investment measures have been widely used to examine the corporate investment behavior. The purpose of this study is to compare the twenty different measures used by corporate finance literature and reduce the gap between existing theoretical concepts and empirical base analyses. Using the panel data of Tehran Stock Exchange (TSE) companies during the period of 2005 to 2017, twenty common and commonly used investment measures in the corporate finance field have been investigated in terms of their volatility and information content. Regarding the hypothesis Correlation analysis, System GMM and trend analysis have been used. The results of the correlation analysis show that some of the various measures of the investment have a negative correlation with each other, and a type of measure is important to the results of empirical researches. The trend analysis test shows that gross investment measures have less volatility in their trend than net investment measures. The analysis of information content analysis shows that the cash based corporate investment measures are systematically more informative than accrual based measures. To sum up, the results of the research show that the cash based gross corporate investment ratios are the best performing of corporate investments measures among the alternatives because they are less noisy and provide more relevant value information.