Abstract:
The major goal of the present research is to investigate about the main changes in ownership
percentage of institutional shareholders on the risk of firms' rewards in firms enlisted in
Tehran Stock Exchange. The statistical population for the present study is composed of
firms enlisted in Tehran Stock Exchange during the years between 2008 and 2014 and the
sample volume has been 118 firms regarding the screening method utilized. In this research
the changes in the percentage of ownership of institutional shareholders and main changes in
the percentage of ownership of institutional shareholders were considered as the
independent variables to study their effects on firm managers' rewards. On the other hand,
the present study is post-incidental (quasi-experimental) type. This means that it was carried
out based on analyzing previous and historical data (firms' financial statements). Also this
research is based on panel data analysis. In this research using panel data with random
effects, the results of analyzing the data in firms by using multiple variable regression in
assurance level of %95, it has been shown that the percentage of institutional shareholders'
ownership and major changes in the percentage of institutional shareholders' ownership have
had a reverse and direct effect on managers' reward risk, respectively
Machine summary:
descriptive statistics of variable financing through the issuance of shares financing through debt size of company Leverage market to book value interest expense earnings before tax Income from sales variable Loan S Loan I Size Lev MB I EBT Rev symbol 63 companies at 9 year Number of observation 10342 1775330 15.
The results second subsidiary hypothesis by regressing random effects Due to significant levels of variable coefficients, size has a probability value is less than 0.
Based on the second hypothesis, earnings before tax and revenue affect by the financial crisis and sanctions on financing through capital increase is effective.
According to the literature and evidence being on corporate and capital market, it is expected that corporate commercial and credit risk has increased because of sanctions and problems are created in the procurement of raw materials and sell their products, that this could affect at financing through loan and credit risk and high interest expense imposed on them and therefore, companies are more inclined to use to capital increase and financing from their shareholders, but the results from sample shows that the financial sanctions on the financing through banks isn’t very effective and this may be because of sample, was not a good example of community and or the banks into support the government for the protection of domestic production of them have supported and without raising interest rate, to company pay facilities.
The results achieved for large companies it can be stated that the sanctions and financial crisis on earnings before tax, revenue and financing methods are not effective.