Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack

The purpose of this study is to examine the effects of characteristics of board of directors, including structure and process characteristics, on financial slack, regarding a sample of158 companies from Tehran Stock Exchange in the period 2003 to 2011. In this study, the variables of changes in liqu...

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Autores principales:	Farzaneh Nassirzadeh, Mahdi Salehi, Behzad Beigi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2015
Materias:	board structure board process company features financial slack Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/74277518f7384d94bf31bcec61aa2baa
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spelling	oai:doaj.org-article:74277518f7384d94bf31bcec61aa2baa2021-11-04T19:48:49ZStructure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack2008-89142476-292X10.22103/jak.2015.1410https://doaj.org/article/74277518f7384d94bf31bcec61aa2baa2015-11-01T00:00:00Zhttps://jak.uk.ac.ir/article_1410_69c43129e81162ef2bb2352d1574f2ad.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe purpose of this study is to examine the effects of characteristics of board of directors, including structure and process characteristics, on financial slack, regarding a sample of158 companies from Tehran Stock Exchange in the period 2003 to 2011. In this study, the variables of changes in liquidity and financial slack were regarded as dependent variables for financial risks, and the variables of structure and process characteristics of board of directors as independent variables, and the variables of company’s features as control variables affecting financial risks and consist of company size, growth opportunity, profitability, and type of industry. To measure process characteristics of the board, the questionnaire of McNulty et al., (2013) was used. Results indicated that if changes arising from financial crisis are considered measuring financial slack, the effect of board size on financial slack in all companies is significantly positive; the effect of duality state of CEO responsibilities on financial slack in automobile and automotive parts manufacturing industry is significantly negative; and among the process characteristics of board, only the effect of using knowledge and skill on financial slack in all the surveyed companies is significantly negative. Moreover, if changes in liquidity are considered financial slack, the effect of board size in chemical products industry, and the effect of growth in automobile manufacturing industry on financial slack, is significantly negative. Other results showed that the other board characteristics have no effect on financial slack in all the companies in different industries.Farzaneh NassirzadehMahdi SalehiBehzad BeigiShahid Bahonar University of Kermanarticleboard structureboard processcompany featuresfinancial slackAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 6, Iss 22, Pp 81-105 (2015)
institution	DOAJ
collection	DOAJ
language	FA
topic	board structure board process company features financial slack Accounting. Bookkeeping HF5601-5689
spellingShingle	board structure board process company features financial slack Accounting. Bookkeeping HF5601-5689 Farzaneh Nassirzadeh Mahdi Salehi Behzad Beigi Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack
description	The purpose of this study is to examine the effects of characteristics of board of directors, including structure and process characteristics, on financial slack, regarding a sample of158 companies from Tehran Stock Exchange in the period 2003 to 2011. In this study, the variables of changes in liquidity and financial slack were regarded as dependent variables for financial risks, and the variables of structure and process characteristics of board of directors as independent variables, and the variables of company’s features as control variables affecting financial risks and consist of company size, growth opportunity, profitability, and type of industry. To measure process characteristics of the board, the questionnaire of McNulty et al., (2013) was used. Results indicated that if changes arising from financial crisis are considered measuring financial slack, the effect of board size on financial slack in all companies is significantly positive; the effect of duality state of CEO responsibilities on financial slack in automobile and automotive parts manufacturing industry is significantly negative; and among the process characteristics of board, only the effect of using knowledge and skill on financial slack in all the surveyed companies is significantly negative. Moreover, if changes in liquidity are considered financial slack, the effect of board size in chemical products industry, and the effect of growth in automobile manufacturing industry on financial slack, is significantly negative. Other results showed that the other board characteristics have no effect on financial slack in all the companies in different industries.
format	article
author	Farzaneh Nassirzadeh Mahdi Salehi Behzad Beigi
author_facet	Farzaneh Nassirzadeh Mahdi Salehi Behzad Beigi
author_sort	Farzaneh Nassirzadeh
title	Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack
title_short	Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack
title_full	Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack
title_fullStr	Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack
title_full_unstemmed	Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack
title_sort	structure and process characteristics of board of directors and financial risks: changes in liquidity - changes in financial slack
publisher	Shahid Bahonar University of Kerman
publishDate	2015
url	https://doaj.org/article/74277518f7384d94bf31bcec61aa2baa
work_keys_str_mv	AT farzanehnassirzadeh structureandprocesscharacteristicsofboardofdirectorsandfinancialriskschangesinliquiditychangesinfinancialslack AT mahdisalehi structureandprocesscharacteristicsofboardofdirectorsandfinancialriskschangesinliquiditychangesinfinancialslack AT behzadbeigi structureandprocesscharacteristicsofboardofdirectorsandfinancialriskschangesinliquiditychangesinfinancialslack
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Structure and Process Characteristics of Board of Directors and Financial Risks: Changes in Liquidity - Changes in Financial Slack

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