University of Twente Student Theses
Ownership structure and risk-taking behaviour in Iranian companies
Kousheshi, Ershad (2024) Ownership structure and risk-taking behaviour in Iranian companies.
|
PDF
644kB |
| Abstract: | This thesis examines the relationship between ownership structure and risk-taking behavior in an Iranian context. The ownership structure is categorized into ownership concentration, government ownership, and institutional ownership. We applied fixed effect regression models using a sample of 256 Iranian firms listed on the Tehran Stock Exchange (TSE) over 5 years from 2018 to 2022. The findings provide significant insights. The research supports the hypothesis that higher government ownership positively correlates with risk-taking behavior, aligning with resource dependency theory. The study emphasizes government-linked corporations' advantages, including protection from market forces and favorable financing conditions. Interestingly, the Materials sector exhibits an even stronger influence of government ownership on risk-taking. Contrary to the hypothesized negative relationship, models indicate a positive and statistically significant association between ownership concentration and risk-taking. The unique economic conditions of Iran, characterized by persistent high inflation and negative real interest rates, provide potential explanations for this result. Regarding institutional ownership, the study finds a positive but statistically insignificant relationship with risk-taking. This unexpected result suggests that fiduciary responsibilities and regulatory constraints associated with institutional investors may not be the primary drivers of risk aversion in the Iranian context. Additionally, control variables such as Return on Assets (ROA), tangibility, and Firm Size demonstrate consistent relationships with risk-taking behavior, providing further insights into the financial dynamics of Iranian companies. The research limitations, such as sampling restrictions, variable endogeneity, and model simplifications, are addressed in the conclusion. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/98106 |
| Export this item as: | BibTeX EndNote HTML Citation Reference Manager |
Show download statistics for this publication
Show download statistics for this publicationRepository Staff Only: item control page