Title: The effect of shareholders' combination on risk taking of the companies listed in Tehran Stock Exchange
Authors: Mohammad Mahdi Nasiri; Masoume Mir; Ali Riahi Samani
Addresses: School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran ' School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran
Abstract: Risk-taking measurement of the companies is highly significant in making economic decisions. The diverse combination of large shareholders enables them to prevent the controlling shareholders from focusing on the low-risk projects. Large shareholders can analyse the inherent risks of each project better and make action in accepting or rejecting the projects such that enhances the company performance. Here, we want to study the relationship between the shareholders' combination and their risk-taking in Tehran Stock Exchange (TSE) market through 2009-2013. In fact, the relationship between presence, quantity and voting rights of the diversified large shareholders and controlling ones were studied by the corporate performance, which is measured by three variables, including ROA, market value (Q Tobin ratio) and share returns. To test the hypotheses, the multi-variable regression model is utilised. The research results indicate that there is a positive and significant relationship between the shareholders' combination and operational criteria.
Keywords: risk taking; diverse shareholders; large shareholders; controller profits; corporate management; controlling shareholders; Iran; risk assessment; voting rights; firm performance; ROA; return on assets; market value; share returns.
International Journal of Business Continuity and Risk Management, 2016 Vol.6 No.3, pp.209 - 221
Received: 17 Oct 2015
Accepted: 08 May 2016
Published online: 08 Sep 2016 *