THE RELATIONSHIP BETWEEN INSTITUTIONAL AND MANAGEMENT OWNERSHIP AND FINANCIAL FLEXIBILITY IN IRANDownload This Article
Mahdi Salehi, Mahmoud Laridashtbayaz, Afsaneh Lotfi
The aim of the current study is to investigate the factors affecting the companies’ ownership structure and the effect of financial health and flexibility on these factors. The statistical technique used to test the hypothesis proposed in this research is panel data. R software used to test the hypotheses. The statistical sample consists of 786 observations in 8 industries as automotive industry, chemical, rubber and plastics, pharmaceuticals, cement-lime plaster, food except sugar, basic metals and machinery over the years 2009-2014. The findings show that a positive interrelation exists between the management share, percentage of institutional owners, rate of return and percent of company growth, and the company’s financial flexibility strengthens the relationship between the percentage of institutional owners’ share and managers’ share.
Keywords: Ownership Structure, Debt Policy, Institutional Ownership
How to cite this paper: Salehi, M., Laridashtbayaz, M., & Lotfi, A. (2016). The relationship between institutional and management ownership and financial flexibility in Iran. Corporate Board: role, duties and composition, 12(3), 35-42. http://doi.org/10.22495/cbv12i3art4