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Information Journal Paper

Title

THE IMPACT OF AGENCY COSTS ON PREDICTING PROFITABILITY

Author(s)

 MOHAMMADZADEH MOGHADAM MOHAMMAD BAGHER | Issue Writer Certificate 

Pages

  285-298

Abstract

 Today's review of the articles shows that the AGENCY COST has been one of the most important fields of studying in accounting. Therefore, the main objective of this study is to evaluate the effect of AGENCY COSTs on PREDICTING PROFITABILITY in Tehran Stock Exchange. In this research, the benchmark for AGENCY COST includes earninig management, CAPITAL STRUCTURE, CORPORATE GOVERNANCE MECHANISM and ASSET TURNOVER RATIO. Regression analysis is used to examine hypotheses of the study. The data set includes 105 companies accepted in Tehran Stock Exchange for the period of2010 to 2016. The results of the hypothesis of this research show that among the criteria for measuring the AGENCY COST, there is a positive and meaningful relationship between institutional ownership and ASSET TURNOVER RATIO with PREDICTING PROFITABILITY. These findings also showed that there is no significant relationship between CAPITAL STRUCTURE and PREDICTING PROFITABILITY. Additionally, the relationship between EARNINGS MANAGEMENT and PREDICTING PROFITABILITY is meaningfulandnegative. The main reason for this negative relationship can be the moral hazard resulting from the information asymmetry of EARNINGS MANAGEMENT.

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    APA: Copy

    MOHAMMADZADEH MOGHADAM, MOHAMMAD BAGHER. (2018). THE IMPACT OF AGENCY COSTS ON PREDICTING PROFITABILITY. INVESTMENT KNOWLEDGE, 7(25 ), 285-298. SID. https://sid.ir/paper/187983/en

    Vancouver: Copy

    MOHAMMADZADEH MOGHADAM MOHAMMAD BAGHER. THE IMPACT OF AGENCY COSTS ON PREDICTING PROFITABILITY. INVESTMENT KNOWLEDGE[Internet]. 2018;7(25 ):285-298. Available from: https://sid.ir/paper/187983/en

    IEEE: Copy

    MOHAMMAD BAGHER MOHAMMADZADEH MOGHADAM, “THE IMPACT OF AGENCY COSTS ON PREDICTING PROFITABILITY,” INVESTMENT KNOWLEDGE, vol. 7, no. 25 , pp. 285–298, 2018, [Online]. Available: https://sid.ir/paper/187983/en

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