چکیده:
The study aims to investigate the relationship between the financial incentives of
board members and disclosure of corporate risk, emphasizing the levels of
corporate performance and risk in Iran. The research sample includes 98 listed
firms in Tehran Stock Exchange during 2011-2015 (490 years-firms); the firms
have selected by using a systematic removal method. Regarding the aim, the
present research is classified as an applied research and concerning its method, it
is categorized as a descriptive research. The research hypotheses are examined
using the linear regression testing method; Eviews software has employed for data
analysis and hypotheses testing. Based on the regression results, financial incentives
of board members are effective on the quality and extend of firm’s
risk disclosure.
خلاصه ماشینی:
3 Research Hypotheses and Methodology Based on the theoretical framework of research, and in order to achieve the research objectives, the following hypotheses are examined: Main Hypothesis: The board member's financial incentives are effective on the quality and extend of corporate risk disclosure.
The model of the first secondary hypothesis is as follows (Model 1): (View the image of this page) Av-NED: Board member's financial incentives (independent variable) HA: Reduction rate of board members (control variable) Clshs: Percentage of shares owned by internal customers (control variable) Mcap: Firm size (control variable) P/B: Book value to market value (control variable) Lev: Leverage (control variable) ROA: Return on asset (control variable) ε୧୲ : Regression error (control variable) The research variable measurement method is presented below: Dependent variable is as Risk Disclosure Quality: The quality and extend of risk disclosure is measured according to Mikenin’s research (2012 and 2013).
Based on Table 6, board member's financial incentives are effective on the firm risk disclosure quality, so the first sec- ondary hypothesis is confirmed.
5 Discussion and Conclusion The present research tries to examine the impact of board member's financial incentives on corpo- rate risk disclosure highlighting corporate performance and risk levels among the listed firms in Teh- ran Stock Exchange.
Based on the results obtained from testing the research hypotheses, the financial incentives of board members are effective on the quality and extend of firm's risk disclosure.