خلاصة:
The aim of this study is to investigate the effects of corporate governance mechanisms in preventing the bankruptcy of companies listed in Tehran Stock Exchange. For this purpose, corporate governance mechanisms, including institutional ownership, non-executive members of the board, CEO dual responsibility and free float stock are determined as independent variables and Bankruptcy based on the Spring ate model is determined as the dependent variable. The Spring ate model was used to evaluate institutional ownership, non-executive members of the board, CEO duality and free-floating share. The findings have mostly supported the hypothesis during the study period. Institutional ownership and non-executive board members have negative and free-floating shares have positive relationship with bankruptcy. Our model did not find a significant relationship between CEO duality and bankruptcy. Although, we can't rule out the possibility of any effects CEO duality might have.
ملخص الجهاز:
The Role of Corporate Governance in Preventing Bankruptcy: a Case of Tehran Stock Exchange Nader Khedri* Department of Accounting, , Abadan branch, Islamic Azad University, Abadan, Iran C H R O N I C L E AbstractArticle history: Received: 05/08/2017 Received in revised 09/01/2017 Accepted:10/09/2017 Keywords: * corporate governance* institutional* ownership* non-executive board*members,*bankruptcy,*Tehran Stock xchange The aim of this study is to investigate the effects of corporate governance mechanisms in preventing the bankruptcy of companies listed in Tehran Stock Exchange.
For this purpose, corporate governance mechanisms, including institutional ownership, non-executive members of the board, CEO dual responsibility and free float stock are determined as independent variables and Bankruptcy based on the Spring ate model is determined as the dependent variable.
Considering the above mentioned, the main hypothesis of this research is as following: H1: Corporate governance mechanisms are effective in preventing companies listed on the Stock Exchange from the bankruptcy.
In the present study, we investigate the ability of some corporate governance mechanisms including the existence of non-executive directors, institutional ownership, CEO duality, the percentage of free-floating shares in preventing the bankruptcy of companies.
The correlation coefficient between corporate governance mechanisms and bankruptcy of companies listed on the TSE is provided in Table (1) (based on Spring ate model during the period of study).
The results show that during the study period, the non-executive members of board, institutional ownership and the CEO duality have a positive and significant correlation, but the free-floating share is significantly and negatively associated with financial bankruptcy.