Open AccessINVESTIGATING RELATIONSHIP BETWEEN CHANGES IN CORPORATE GOVERNANCE CHARACTERISTICS AND PROFIT QUALITY
Author(s) -
Thaer Najm Kadhim
Publication year - 2022
Publication title -
international journal of transformation in business management
Language(s) - English
Resource type - Journals
eISSN - 2454-468X
pISSN - 2231-6868
DOI - 10.37648/ijtbm.v12i01.010
Subject(s) - corporate governance , business , accounting , stock exchange , audit , quality audit , profit (economics) , population , audit committee , finance , economics , demography , sociology , microeconomics
The main purpose of this study is to investigate the relationship between changes in corporate governance characteristics of profit quality in companies listed on the Tehran Stock Exchange. In this study, changes in the characteristics of corporate governance include changes in the independence of the board of directors, CEO, auditor and concentration of ownership, and the Kothari (2005) model has been used to measure the quality of profits. The statistical population of the study includes 161 companies listed on the Tehran Stock Exchange and the period is from 2010 until 2015. The tests were performed at the general level of companies, small companies and large companies. The research findings indicate that in general, there is a negative and significant relationship between changes in corporate governance characteristics, i.e. changes in CEO, auditor and ownership concentration with profit quality at the general level of companies. But in large corporations, no relationship was found between changes in board independence and ownership concentration with profit quality. Also, there is a negative and significant relationship between the changes of the CEO and the auditor with the quality of profits at the level of large companies. In addition, no significant relationship was found between changes in corporate governance and profit quality at the level of small companies