Capital markets
Mohammad Hosein Fatheh; Parisa Rahmani
Abstract
1- INTRODUCTION
The business strategy of companies plays an essential role in achieving the company's goals, and strategies should be adopted based on the company's ability, resources, and goals. Choosing the wrong strategy can jeopardize the interests of the stakeholders and the company. As ...
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1- INTRODUCTION
The business strategy of companies plays an essential role in achieving the company's goals, and strategies should be adopted based on the company's ability, resources, and goals. Choosing the wrong strategy can jeopardize the interests of the stakeholders and the company. As a result, the adoption of strategy by managers should be monitored. Meanwhile, corporate governance with two arms of non-commissioned managers and the audit committee as tools for monitoring the performance of managers and the overall performance of companies, is probably effective in adopting business strategy. Therefore, the purpose of this study is to provide new evidence about the relationship between the quality of the board of directors and the audit committee as two fundamental pillars of corporate governance, in relation to the aggressive business strategy of commercial units.
2- THEORETICAL FRAMEWORK
One of the variables influencing the policies and performance of companies is business strategy. Strategy includes a set of decision-making rules that direct the organization's overall behavior. These decision-making rules determine the organization's relationships with its external environment. In general, business strategy consists of integrated actions in search of competitive advantage. In the organizational literature, two major, different and complementary concepts are examined for the survival and progress of organizations, those two concepts are management and governance. In the concept of management, the main emphasis is on the methods of achieving organizational goals, while the concept of governance is a supervisory concept. The characteristics of the board of directors of companies refer to the mechanisms of corporate governance and the role of board members in monitoring the affairs of companies. Corporate governance is a system that not only enhances the relationship between different parties (shareholders, managers and investors of the company), but also ensures the availability of appropriate resources among competing users. In addition, it provides structures through which firm goals are formulated and ways to achieve goals as well as performance reviews. The purpose of creating an audit committee is to create a set of experts and specialists to monitor management activities on behalf of company owners.The audit committee is a sub-committee under the framework of corporate governance, in which the board of directors assigns some supervisory responsibilities to it. The board of directors and the audit committee are the main pillars of corporate governance and have the duty of fiduciary and protecting the interests of shareholders and supervise the implementation of the company's internal controls.
3- METHODOLOGY
The current research is applied and from the methodological point of view, the correlation is causal type (post-event). The statistical population of the research is all the companies admitted to the Tehran Stock Exchange, and using screening, 131 companies were selected as the research sample and were investigated in the 10-year period between 1390 and 1399.
4- RESULTS & DISCUSSION
The results of the research hypotheses test showed that in the first hypothesis, the quality of the board of directors has a direct effect on the aggressive business strategy of the companies. The results of the second hypothesis also showed that the quality of the audit committee has no effect on the aggressive business strategy of the companies.
5- CONCLUSIONS & SUGGESTIONS
Companies that want to progress and surpass their competitors in the market by choosing an aggressive strategy and using new operational plans and new technologies, actually accept a kind of risk and hazard that should be in the shadow of principled and accurate planning, so such companies They require strict internal controls that are the result of managers' careful supervision and strong and quality corporate governance, and the results obtained show that improving the quality of the board of directors can have a positive impact on choosing an aggressive business strategy.
Capital markets
Abdolrasoul Rahmanian Koushkaki; Faeze Nazari
Abstract
Objective: The main purpose of this study is to investigate the relationship between cash retention and investment efficiency in companies in financial crisis with regard to the role of corporate governance. Methods: The present study is applied and from a methodological point of view, causal (post-event) ...
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Objective: The main purpose of this study is to investigate the relationship between cash retention and investment efficiency in companies in financial crisis with regard to the role of corporate governance. Methods: The present study is applied and from a methodological point of view, causal (post-event) correlation. The statistical population of the study is all companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 132 companies were selected as the research sample and were examined over a period of 8 years between 2013 and 2020. Results: The results of testing the research hypotheses showed that there is a direct relationship between cash retention and investment efficiency. The interaction between corporate governance and cash retention has an adverse effect on investment performance, but ultimately the interaction between corporate governance and cash retention in companies in financial crisis has no effect on investment efficiency.Conclusion: Managers of companies with well-written and principled plans to manage liquidity resources and accumulation of cash in companies are able to make quick decisions when faced with high-yield investments. Also, having a well-written plan to prevent the occurrence of financial crisis and, if possible, use teams specializing in financial and economic fields to prevent or exit the financial crisis.
