This study investigates the moderating effect of CEO power on the relationship between labor productivity and financial performance in the Tehran Stock Exchange (TSE).
Abstract
Purpose
This study investigates the moderating effect of CEO power on the relationship between labor productivity and financial performance in the Tehran Stock Exchange (TSE).
Design/methodology/approach
In this study, the power of the CEO variable was measured using the power index method and its effect on the relationship between labor productivity and financial performance was tested using a multivariate regression. The study sample consisted of 1,040 observations and 130 firms listed on the TSE over an eight-year period between 2012 and 2019. Panel data and appropriate statistical techniques were applied to estimate models. In this study, Tobin’s Q and return on assets (ROA) are the two variables used to measure financial performance.
Findings
The results of the hypotheses show that the link between labor productivity and financial performance based on Tobin’s Q and ROA strengthens with increasing CEO power. Thus, the stewardship theory is approved on the TSE. In addition, CEO power and labor productivity have a positive impact on firm performance.
Research limitations/implications
To the best of the author’s knowledge, this is the first study to examine the moderating impact of CEO power on the relationship between labor productivity and firms' financial performance in emerging capital markets. Therefore, the results of this study can be used by investors, board of directors, policymakers and regulations.
Practical implications
Taking into consideration the sanctions on Iran's economy during the study period and to increase the productivity and financial performance of the company, the results of this study can provide a practical guide for the board of directors to consider the characteristics of CEO power and how to choose it in the emerging capital market. Additionally, the study results show that investors should choose companies with strong CEO to invest in the Iranian capital market.
Originality/value
The current study is the first study conducted in an emerging economy to examine the moderating impact of CEO power on the link between labor productivity and financial performance.
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The main purpose of this study is to investigate the effect of investor sentiment on accounting conservatism in listed companies in the Tehran Stock Exchange (TSE).
Abstract
Purpose
The main purpose of this study is to investigate the effect of investor sentiment on accounting conservatism in listed companies in the Tehran Stock Exchange (TSE).
Design/methodology/approach
In this paper, two models of Ball and Shivakumar (2006) and Basu (1997) have been used for measuring conditional conservatism in accounting. To measure investor sentiment, the author uses the Baker and Wurgler (2006, 2007) index. The research sample consists of 1,820 observations and 182 firms listed on TSE over a ten-year period between 2011 and 2020. This study uses panel data and multivariate regression analysis to test it hypotheses.
Findings
Consistent with this hypothesis that accounting conservatism will increase with investor sentiment, the results showed that Iranian firms recognize economic losses and bad news in a more timely manner during high sentiment periods than during low sentiment periods. This implies that Iranian managers recognize economic losses and bad news in earnings in a more timely manner during periods of high investor sentiment.
Practical implications
This finding provides significant evidence for investors and financial reporting standard-setters in Iran because by removing accounting conservatism from the conceptual framework, managers are not able to present conservative financial reports, and this can intensify the negative impact of investors sentiment in the Iranian capital market. Managers of Iranian companies can reduce information asymmetry and increase capital market efficiency by accelerating the disclosure of bad news. Thus, managers can strategically recognize losses and prevent investors from making emotional decisions that reduce their wealth.
Originality/value
To the best of the authors’ knowledge, this is the first study to empirically examine the impact of investor sentiment on accounting conservatism in a developing market called Iran. This study contributes to the corporate disclosure literature. Also, the result of this study contributes to standard-setters of accounting standards to improve the mandatory disclosure literature on more conservative accounting earnings.
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Saeid AliAhmadi and Afsaneh Soroushyar
The main purpose of this study is to analyze the impact of monetary policies on Islamic mutual fund flows in the Islamic Republic of Iran.
Abstract
Purpose
The main purpose of this study is to analyze the impact of monetary policies on Islamic mutual fund flows in the Islamic Republic of Iran.
Design/methodology/approach
In this study, a panel regression model was used to test the research hypotheses. The sample consists of 4,760 seasonality data and 119 Islamic mutual funds over ten-year period between 2011 and 2020. The dependent variable of the study is the cash flow of Islamic mutual funds and the independent variable of monetary policies includes the money growth rate, the liquidity growth rate, interest rate and inflation rate.
Findings
Based on the results of the hypothesis test, all research variables including money growth rate, liquidity growth rate, interest rate and inflation rate have a negative and significant impact on Islamic mutual fund flows. These findings are consistent with the efficient market hypothesis and signaling theory.
Research limitations/implications
This study has implication for policymakers, regulators and fund managers. The results show that the negative impact of monetary policies on Islamic mutual fund flows has a direct effect on the allocation decisions and investment strategies of Islamic mutual fund investors and managers. Also, the results of the research can reduce policymakers’ concerns about monetary policies and provide them forward-looking guidance policy.
Originality/value
To the best of the authors’ knowledge, this is the first study to empirically examine the impact of monetary policies on Islamic mutual fund flows in an emerging economy and provides a significant contribution to the literature of mutual funds.
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Peyman Akhavan, Masoumeh Nabizadeh and Lila Rajabion
Although there are some studies about knowledge management at national level, no integrated attempts have been reported in the direction of introducing knowledge management…
Abstract
Purpose
Although there are some studies about knowledge management at national level, no integrated attempts have been reported in the direction of introducing knowledge management pattern at national level based on real experiences. Numerous researches have been conducted in the domain of knowledge management at micro level. But at macro/national level, some concepts and components have been investigated briefly. The purpose of this paper is to deal with this gap.
Design/methodology/approach
This research uses the hybrid method. The technique of qualitative case study of grounded theory method has been selected in this research for gathering and analyzing data. Data have been categorized and analyzed from case studies (at countries level) using the steps of this method. The degree of correlation and causality and the importance of each concept existing in the pattern have been computed by applying decision-making trial and evaluation (dematel) technique. The obtained concepts and pattern could be applied as a guide for accepting and implementing knowledge management at national level.
Findings
Total positive findings have been obtained from case studies, and the authors attained 14 concepts and one pattern. These findings provide the steps of designing and are useful in implementing projects and programs of knowledge management at national level. The degree of correlation between the components of the pattern is the other finding of this study.
Practical implications
The obtained concepts and patterns can be used as a guide in countries and governments which decide to implement knowledge management at national level. These can be a basis for countries which are in the process of implementing the projects of knowledge management at national level.
Originality/value
This research is the first study that aims to provide the pattern of knowledge management at national level and can provide useful information for countries and governments and can be used as a reference to guide them for the implementation. So these countries will be able to design and implement their programs of knowledge management purposefully.