Volume 13, Issue 4 (2024)
ORMR 2024, 13(4): 25-51 |
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Anvary Rostamy A A, KARAMI A, Zamani A A, Badavar Nahavandi Y, Saeedi A. The effect of corporate governance mechanisms on the interaction between agency costs and information efficiency of stock prices of companies listed on of the Tehran Stock Exchange. ORMR 2024; 13 (4) :25-51
URL: http://ormr.modares.ac.ir/article-28-69584-en.html
URL: http://ormr.modares.ac.ir/article-28-69584-en.html
Ali Asghar Anvary Rostamy 
1, AZHDAR KARAMI2 , Ali Asghar Zamani3 , Yones Badavar Nahavandi4 , Ali Saeedi5
1, AZHDAR KARAMI2 , Ali Asghar Zamani3 , Yones Badavar Nahavandi4 , Ali Saeedi5
1- Professor of Finance, Department of Planning & Management, Management Study & Technology Development Center, Tarbiat Modares University, Tehran, Iran. , anvary@modares.ac.ir
2- Associatr Professor, Department of Business and Management, Bangor Business School, Bangor University, Bangor, United Kingdom.
3- Assistant Professor, Department of Accounting, Faculty of Management, Economics and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
4- Associate Professor, Department of Accounting, Faculty of Management, Economics and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
5- Associate Professor, Department of Management, Faculty of Management, North Tehran Branch, Islamic Azad University, Tehran, Iran.
2- Associatr Professor, Department of Business and Management, Bangor Business School, Bangor University, Bangor, United Kingdom.
3- Assistant Professor, Department of Accounting, Faculty of Management, Economics and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
4- Associate Professor, Department of Accounting, Faculty of Management, Economics and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
5- Associate Professor, Department of Management, Faculty of Management, North Tehran Branch, Islamic Azad University, Tehran, Iran.
Abstract: (995 Views)
This study investigates the impacts of corporate governance on the interaction between the agency costs and information efficiency of stock prices. In this research, the agency issues measured by the interaction between corporate growth opportunities and its free cash flows. Four corporate governance mechanisms examined in this research are financial expertise and independence of the board of directors, internal audit and institutional shareholders. The sample consists of 130 companies from 1394 to 1400. The results show that agency cost has a significantly negative effect on the information efficiency of stock prices. Moreover, the findings confirm that among the four corporate governance mechanisms, only institutional shareholders significantly moderates the negative effects of agency cost on the information efficiency of stock prices. However, we could not find any evidence on the moderating role of internal auditor, board financial expertise and independence. The results of this research showed that the growth opportunities and free cash flows of companies are among the most important variables affecting the information efficiency of stock prices in the Iranian Stock Exchange.
Article Type: Original Research |
Subject:
Strategy and Management
Received: 2023/06/3 | Accepted: 2023/11/20 | Published: 2024/03/12
Received: 2023/06/3 | Accepted: 2023/11/20 | Published: 2024/03/12
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