International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Identifying and ranking corporate governance based on the ANP method and examining its mediating role on the relationship between income-cost matching and stock price volatility

Document Type : Original Article

Authors
Hamid Khedmatgozar 1
Mojtaba Maleki Choubari 2
sina Kheradyar 3
1 Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran
2 Department of Accounting, Lahijan Branch, Islamic Azad University, Lahijan, Iran
3 Department of accounting, rasht branch, islamic azad university, rasht, iran.
10.30495/ijfma.2023.71531.1968
Abstract
In order to maintain investors' confidence in the development of the legal framework for corporate governance, it is recommended to develop a conceptual framework and economic growth. Among the important reasons affecting economic growth and development, it can be said that, basically, stock returns are caused by capital gain and stock price fluctuations, and the return on dividends is determined by taking into account the profit earned during the investment period. In order to evaluate the stock price of the company's profit for investors and financial analysts, we must pay attention to the matching principle, because the matching principle focuses on recognizing and measuring profit. The purpose of this research is to identify and rank the mediating role of corporate governance by focusing on the ANP method on the relationship between income-cost matching and stock price volatility. The research sample includes 150 companies from the companies accepted in the Tehran Stock Exchange, which covers a period of 7 years from the beginning of 2013 to the end of 2019. The results of the research show that the corporate governance rating, which includes the four dimensions of the effects of ownership, shareholder equity, transparency and effectiveness of the board of directors, has a full mediating role on the relationship between income-cost matching and stock price fluctuations.
Keywords
Corporate governance rating
income-cost matching
stock price volatility
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