Managerial Ability, Investment Efficiency and Financial Reporting Quality
This study is aimed to investigate the effects of managerial ability on the investment efficiency and also examine the effect of financial reporting quality on the extent of managerial ability effectiveness on the investment efficiency of firms listed in Tehran Stock Exchange (TSE). Investment effic...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Alzahra University
2016-11-01
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| Series: | پژوهشهای تجربی حسابداری |
| Subjects: | |
| Online Access: | http://jera.alzahra.ac.ir/article_2537_34194035da96079d63964fd8ddf8ce87.pdf |
| _version_ | 1819103143155204096 |
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| author | daryoush foroghi amin sakiani |
| author_facet | daryoush foroghi amin sakiani |
| author_sort | daryoush foroghi |
| collection | DOAJ |
| description | This study is aimed to investigate the effects of managerial ability on the investment efficiency and also examine the effect of financial reporting quality on the extent of managerial ability effectiveness on the investment efficiency of firms listed in Tehran Stock Exchange (TSE). Investment efficiency in a conceptual framework means the acceptance of the investment projects with positive NPV, and investment inefficiency means rejecting these investments opportunities (underinvestment) or investing in projects with negative NPV (overinvestment). Overinvestment and underinvestment are signs of investment inefficiency. Chen(2011) modeling, Demerjian et al(2011) modeling and Kothari(2005)accruals quality modeling have been used for evaluating the investment efficiency, managerial ability and financial reporting quality respectively. The systematic elimination method was used for sampling 119 firms listed in Tehran Stock Exchange during the years 2008 to 2014, and the model of panel data was applied to test hypotheses. The results indicate that managers with more ability are more willing to do overinvestment. Also, the results show that the financial reporting quality decreases the managerial ability effectiveness on overinvestment. |
| first_indexed | 2024-12-22T01:45:46Z |
| format | Article |
| id | doaj.art-1be3d95ee173419cb04bb09cdd0f7b79 |
| institution | Directory Open Access Journal |
| issn | 2251-8509 2538-1520 |
| language | fas |
| last_indexed | 2024-12-22T01:45:46Z |
| publishDate | 2016-11-01 |
| publisher | Alzahra University |
| record_format | Article |
| series | پژوهشهای تجربی حسابداری |
| spelling | doaj.art-1be3d95ee173419cb04bb09cdd0f7b792022-12-21T18:43:04ZfasAlzahra Universityپژوهشهای تجربی حسابداری2251-85092538-15202016-11-0161639010.22051/jera.2016.25372537Managerial Ability, Investment Efficiency and Financial Reporting Qualitydaryoush foroghi0amin sakiani1دانشیار حسابداری دانشگاه اصفهاندانشجو کارشناسی ارشد حسابداری دانشگاه اصفهانThis study is aimed to investigate the effects of managerial ability on the investment efficiency and also examine the effect of financial reporting quality on the extent of managerial ability effectiveness on the investment efficiency of firms listed in Tehran Stock Exchange (TSE). Investment efficiency in a conceptual framework means the acceptance of the investment projects with positive NPV, and investment inefficiency means rejecting these investments opportunities (underinvestment) or investing in projects with negative NPV (overinvestment). Overinvestment and underinvestment are signs of investment inefficiency. Chen(2011) modeling, Demerjian et al(2011) modeling and Kothari(2005)accruals quality modeling have been used for evaluating the investment efficiency, managerial ability and financial reporting quality respectively. The systematic elimination method was used for sampling 119 firms listed in Tehran Stock Exchange during the years 2008 to 2014, and the model of panel data was applied to test hypotheses. The results indicate that managers with more ability are more willing to do overinvestment. Also, the results show that the financial reporting quality decreases the managerial ability effectiveness on overinvestment.http://jera.alzahra.ac.ir/article_2537_34194035da96079d63964fd8ddf8ce87.pdfManagerial AbilityInvestment EfficiencyFinancial Reporting QualityOver InvestmentUnder investment |
| spellingShingle | daryoush foroghi amin sakiani Managerial Ability, Investment Efficiency and Financial Reporting Quality پژوهشهای تجربی حسابداری Managerial Ability Investment Efficiency Financial Reporting Quality Over Investment Under investment |
| title | Managerial Ability, Investment Efficiency and Financial Reporting Quality |
| title_full | Managerial Ability, Investment Efficiency and Financial Reporting Quality |
| title_fullStr | Managerial Ability, Investment Efficiency and Financial Reporting Quality |
| title_full_unstemmed | Managerial Ability, Investment Efficiency and Financial Reporting Quality |
| title_short | Managerial Ability, Investment Efficiency and Financial Reporting Quality |
| title_sort | managerial ability investment efficiency and financial reporting quality |
| topic | Managerial Ability Investment Efficiency Financial Reporting Quality Over Investment Under investment |
| url | http://jera.alzahra.ac.ir/article_2537_34194035da96079d63964fd8ddf8ce87.pdf |
| work_keys_str_mv | AT daryoushforoghi managerialabilityinvestmentefficiencyandfinancialreportingquality AT aminsakiani managerialabilityinvestmentefficiencyandfinancialreportingquality |