Volume 10, Issue 3, March 2015, Pages 866–874
Accounting, Economics and Financial Management Conference (AEFMC 2014), Iran 26-27 October 2014
Farzin Rezaei1 and Mohsen Rafieinia2
1 Assistant Professor in Accounting, Member of Management and Accounting Faculty, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 MA student of Kar Institute of Qazvin unit, Qazvin, Iran
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The purpose of this paper is to investigate the relationship between Board composition and financial leverage of a company in which there is political connection. In this way, multilateral model of Topsis method and weighted multi-criteria model entropy index method is used to measure their political connection. In order to examine the research hypotheses, Regressions model and to estimate the models, Eviews software is applied. In this research, generally 109 companies are considered as samples about which all information is gained through analysis of stock data of Tehran's negotiable instruments organization during an eleven-year period (2001-2012). Findings of this research reveal there is no relationship between Board composition and financial leverage in companies with a great deal of political connection. In addition, there is no relationship between Board composition and financial leverage about companies in which there is little political connection. In fact, the results display that being political does not influence on the relationship between Board composition and financial leverage.
Author Keywords: financial leverage, board composition, political connection.
Accounting, Economics and Financial Management Conference (AEFMC 2014), Iran 26-27 October 2014
Farzin Rezaei1 and Mohsen Rafieinia2
1 Assistant Professor in Accounting, Member of Management and Accounting Faculty, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 MA student of Kar Institute of Qazvin unit, Qazvin, Iran
Original language: English
Copyright © 2015 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The purpose of this paper is to investigate the relationship between Board composition and financial leverage of a company in which there is political connection. In this way, multilateral model of Topsis method and weighted multi-criteria model entropy index method is used to measure their political connection. In order to examine the research hypotheses, Regressions model and to estimate the models, Eviews software is applied. In this research, generally 109 companies are considered as samples about which all information is gained through analysis of stock data of Tehran's negotiable instruments organization during an eleven-year period (2001-2012). Findings of this research reveal there is no relationship between Board composition and financial leverage in companies with a great deal of political connection. In addition, there is no relationship between Board composition and financial leverage about companies in which there is little political connection. In fact, the results display that being political does not influence on the relationship between Board composition and financial leverage.
Author Keywords: financial leverage, board composition, political connection.
How to Cite this Article
Farzin Rezaei and Mohsen Rafieinia, “Political connection Role on Relationship between board composition and Companies' Financial leverage,” International Journal of Innovation and Applied Studies, vol. 10, no. 3, pp. 866–874, March 2015.
