Investor Protection Evaluation based on Themes of Corporate Governance Civilization
Protecting the interests of shareholders is considered one of the main pillars of any capital market, which, while increasing the level of financial transparency, prevents the loss of their interests to those in power in companies. Consistency of laws and regulations on the one hand and the effectiv...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Iran Finance Association
2023-01-01
|
| Series: | Iranian Journal of Finance |
| Subjects: | |
| Online Access: | https://www.ijfifsa.ir/article_145515_ed006c06178e9085b4e26b7973a270a2.pdf |
| _version_ | 1811215577800245248 |
|---|---|
| author | Mojtaba Hidari Hasan Valiyan Alireza Koushki Jahromi Mohammadreza Abdoli |
| author_facet | Mojtaba Hidari Hasan Valiyan Alireza Koushki Jahromi Mohammadreza Abdoli |
| author_sort | Mojtaba Hidari |
| collection | DOAJ |
| description | Protecting the interests of shareholders is considered one of the main pillars of any capital market, which, while increasing the level of financial transparency, prevents the loss of their interests to those in power in companies. Consistency of laws and regulations on the one hand and the effectiveness of the corporate governance system in supervising the financial and legal operations of the company is considered important factor in respecting contracts and supporting the investments of minority and majority shareholders of companies, which makes investors confident in protecting their investments. Governance structural keywords in the corporate governance system can lead to Investor Protection by arranging effective board oversight mechanisms and motivating investors to have confidence in the structures of capital market companies. The purpose of this study is to interpret Investor Protection under the existence of a Governance Civilization based on interpretive prioritization analysis.
In this study, theoretical screening based on similar studies was used to identify the components (Investor Protection) and research propositions (themes of corporate governance civilization). Then, in order to determine the reliability of research components and propositions through the participation of 14 experts and experts in the field of accounting and financial management, Delphi analysis was used. In the quantitative part, the components and propositions identified in the form of matrix questionnaires were evaluated by interpretive analysis by 20 managers of the top 50 companies of the Tehran Stock Exchange in 2009.
The results showed that the proposition of sociocracy is considered the most influential theme of corporate governance civilization in capital market companies, which strengthens the effectiveness of internal control as a component of protecting the interests of shareholders. This result shows that the theme of sociocracy enables corporate governance mechanisms by promoting the level of sharing and participatory discourses to increase the effectiveness of board oversight, strengthen the weaknesses of internal controls to enhance the effectiveness of control over financial performance, and enrich the capacity to build trust and confidence in the performance of companies. |
| first_indexed | 2024-04-12T06:24:55Z |
| format | Article |
| id | doaj.art-8b65a3ee487a41db91db1c417c38b926 |
| institution | Directory Open Access Journal |
| issn | 2676-6337 2676-6345 |
| language | English |
| last_indexed | 2024-04-12T06:24:55Z |
| publishDate | 2023-01-01 |
| publisher | Iran Finance Association |
| record_format | Article |
| series | Iranian Journal of Finance |
| spelling | doaj.art-8b65a3ee487a41db91db1c417c38b9262022-12-22T03:44:11ZengIran Finance AssociationIranian Journal of Finance2676-63372676-63452023-01-017110514010.30699/ijf.2021.276991.1205145515Investor Protection Evaluation based on Themes of Corporate Governance CivilizationMojtaba Hidari0Hasan Valiyan1Alireza Koushki Jahromi2Mohammadreza Abdoli3PhD student accounting, Shahrood Branch, Islamic Azad University, Shahrood, IranDepartment of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, IranDepartment of Public Administration Faculty of Management and Accounting, Allameh Tabataba'i UniversityAssociate Professor, Accounting Department, Shahroud Branch, Islamic Azad University, Shahroud, IranProtecting the interests of shareholders is considered one of the main pillars of any capital market, which, while increasing the level of financial transparency, prevents the loss of their interests to those in power in companies. Consistency of laws and regulations on the one hand and the effectiveness of the corporate governance system in supervising the financial and legal operations of the company is considered important factor in respecting contracts and supporting the investments of minority and majority shareholders of companies, which makes investors confident in protecting their investments. Governance structural keywords in the corporate governance system can lead to Investor Protection by arranging effective board oversight mechanisms and motivating investors to have confidence in the structures of capital market companies. The purpose of this study is to interpret Investor Protection under the existence of a Governance Civilization based on interpretive prioritization analysis. In this study, theoretical screening based on similar studies was used to identify the components (Investor Protection) and research propositions (themes of corporate governance civilization). Then, in order to determine the reliability of research components and propositions through the participation of 14 experts and experts in the field of accounting and financial management, Delphi analysis was used. In the quantitative part, the components and propositions identified in the form of matrix questionnaires were evaluated by interpretive analysis by 20 managers of the top 50 companies of the Tehran Stock Exchange in 2009. The results showed that the proposition of sociocracy is considered the most influential theme of corporate governance civilization in capital market companies, which strengthens the effectiveness of internal control as a component of protecting the interests of shareholders. This result shows that the theme of sociocracy enables corporate governance mechanisms by promoting the level of sharing and participatory discourses to increase the effectiveness of board oversight, strengthen the weaknesses of internal controls to enhance the effectiveness of control over financial performance, and enrich the capacity to build trust and confidence in the performance of companies.https://www.ijfifsa.ir/article_145515_ed006c06178e9085b4e26b7973a270a2.pdfcorporate governance civilizationinvestor protectioninternal control effectivenesssociocracy |
| spellingShingle | Mojtaba Hidari Hasan Valiyan Alireza Koushki Jahromi Mohammadreza Abdoli Investor Protection Evaluation based on Themes of Corporate Governance Civilization Iranian Journal of Finance corporate governance civilization investor protection internal control effectiveness sociocracy |
| title | Investor Protection Evaluation based on Themes of Corporate Governance Civilization |
| title_full | Investor Protection Evaluation based on Themes of Corporate Governance Civilization |
| title_fullStr | Investor Protection Evaluation based on Themes of Corporate Governance Civilization |
| title_full_unstemmed | Investor Protection Evaluation based on Themes of Corporate Governance Civilization |
| title_short | Investor Protection Evaluation based on Themes of Corporate Governance Civilization |
| title_sort | investor protection evaluation based on themes of corporate governance civilization |
| topic | corporate governance civilization investor protection internal control effectiveness sociocracy |
| url | https://www.ijfifsa.ir/article_145515_ed006c06178e9085b4e26b7973a270a2.pdf |
| work_keys_str_mv | AT mojtabahidari investorprotectionevaluationbasedonthemesofcorporategovernancecivilization AT hasanvaliyan investorprotectionevaluationbasedonthemesofcorporategovernancecivilization AT alirezakoushkijahromi investorprotectionevaluationbasedonthemesofcorporategovernancecivilization AT mohammadrezaabdoli investorprotectionevaluationbasedonthemesofcorporategovernancecivilization |