The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock Exchange
Purpose: One of the topics that has been well discussed in the theoretical foundations of financial economics is the sensitivity of investment costs to cash flow. The degree of a firm's reliance on internal resources is determined by the sensitivity of investment to the firm's cash flow. I...
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| Format: | Article |
| Language: | fas |
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Ayandegan Institute of Higher Education, Tonekabon,
2024-08-01
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| Series: | مدیریت نوآوری و راهبردهای عملیاتی |
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| Online Access: | http://www.journal-imos.ir/article_194359_cd36c9dd7d19e383561f1ef33f67c03e.pdf |
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| _version_ | 1832577839738650624 |
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| author | Sedigheh Kamranrad Seyed Hesam Vaghfi Maliheh, Ghazvini |
| author_facet | Sedigheh Kamranrad Seyed Hesam Vaghfi Maliheh, Ghazvini |
| author_sort | Sedigheh Kamranrad |
| collection | DOAJ |
| description | Purpose: One of the topics that has been well discussed in the theoretical foundations of financial economics is the sensitivity of investment costs to cash flow. The degree of a firm's reliance on internal resources is determined by the sensitivity of investment to the firm's cash flow. In this regard, the present study examines the moderating role of agency costs on the relationship between CEO characteristics (including CEO optimism, ability, influence and experience) and investment sensitivity to firms' cash flows.Methodology: For this purpose, 136 manufacturing companies were selected from Tehran Stock Exchange through screening technique during 11 years (2011-2021). This research is a library and analytical-causal study based on panel data analysis; also, factor analysis was used to index CEO characteristics.Findings: The results showed that CEO optimism, ability, influence and experience have a significant effect on the sensitivities of firms' investment cash flows. In addition, the results showed that agency costs have a significant effect on the relationship between CEO optimism, experience, ability and influence and the sensitivities of firms' investment cash flows.Originality/Value: Improving our understanding in this area enables us to make optimal decisions in managing our investments in companies. This study helps us to gain deeper insights into the determinants of investing in companies and to select the most effective strategies for capital efficiency. |
| format | Article |
| id | doaj-art-c546a8e2d9394bcfa6088b0a8fa71897 |
| institution | Kabale University |
| issn | 2783-1345 2717-4581 |
| language | fas |
| publishDate | 2024-08-01 |
| publisher | Ayandegan Institute of Higher Education, Tonekabon, |
| record_format | Article |
| series | مدیریت نوآوری و راهبردهای عملیاتی |
| spelling | doaj-art-c546a8e2d9394bcfa6088b0a8fa718972025-01-30T14:56:43ZfasAyandegan Institute of Higher Education, Tonekabon,مدیریت نوآوری و راهبردهای عملیاتی2783-13452717-45812024-08-015213314910.22105/imos.2024.447433.1335194359The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock ExchangeSedigheh Kamranrad0Seyed Hesam Vaghfi1Maliheh, Ghazvini2Department of Management, Economics and Accounting, Payame Noor University, Tehran, Iran.Department of Management, Economics and Accounting, Payame Noor University, Tehran, Iran.Department of Accounting, Imam Reza International University, Mashhad, Iran.Purpose: One of the topics that has been well discussed in the theoretical foundations of financial economics is the sensitivity of investment costs to cash flow. The degree of a firm's reliance on internal resources is determined by the sensitivity of investment to the firm's cash flow. In this regard, the present study examines the moderating role of agency costs on the relationship between CEO characteristics (including CEO optimism, ability, influence and experience) and investment sensitivity to firms' cash flows.Methodology: For this purpose, 136 manufacturing companies were selected from Tehran Stock Exchange through screening technique during 11 years (2011-2021). This research is a library and analytical-causal study based on panel data analysis; also, factor analysis was used to index CEO characteristics.Findings: The results showed that CEO optimism, ability, influence and experience have a significant effect on the sensitivities of firms' investment cash flows. In addition, the results showed that agency costs have a significant effect on the relationship between CEO optimism, experience, ability and influence and the sensitivities of firms' investment cash flows.Originality/Value: Improving our understanding in this area enables us to make optimal decisions in managing our investments in companies. This study helps us to gain deeper insights into the determinants of investing in companies and to select the most effective strategies for capital efficiency.http://www.journal-imos.ir/article_194359_cd36c9dd7d19e383561f1ef33f67c03e.pdfagency costscharacteristics of the ceoinvestment sensitivityinternal cash flow |
| spellingShingle | Sedigheh Kamranrad Seyed Hesam Vaghfi Maliheh, Ghazvini The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock Exchange مدیریت نوآوری و راهبردهای عملیاتی agency costs characteristics of the ceo investment sensitivity internal cash flow |
| title | The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock Exchange |
| title_full | The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock Exchange |
| title_fullStr | The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock Exchange |
| title_full_unstemmed | The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock Exchange |
| title_short | The effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the Tehran Stock Exchange |
| title_sort | effect of agency costs on the relationship between management characteristics and investment sensitivity to internal cash of companies listed on the tehran stock exchange |
| topic | agency costs characteristics of the ceo investment sensitivity internal cash flow |
| url | http://www.journal-imos.ir/article_194359_cd36c9dd7d19e383561f1ef33f67c03e.pdf |
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