Developing a Model for Protecting Investors' Rights with Emphasis on Accounting Constructs

Abstract

Objective: Economic growth and development of a country are the results of the country's productive capacity and capital is one of the most important factors of production. Funding through the capital market is one of the least costly financing methods that require the trust of investors, the security of investment, and the protection of investors' rights. The purpose of this study is to provide a model for protecting the rights of investors with an emphasis on accounting constructs. Methods: In this research, by using theoretical sampling method and then snowball sampling, the factors influencing the investors' protection rights were investigated through interviewing experts and specialists including faculty members and people working in the securities and exchange organization or other elements of the capital market, by using the grounded theory methodology and analyzing the data obtained from the interview, factors affecting the protection of investors' rights were examined. Also, using open, axial and selective coding, the concepts, categories, specifications and dimensions of the categories were extracted and the categories referred to the conditions, strategies, intervening conditions, context conditions and consequences. The model was refined and validated by presenting the experts (some of whom had not previously been interviewed). Results: A model for protecting the rights of investors that has identified the components that affect the protection of investors' rights. Conclusion: Identifying the components of protecting the rights of investors increases the economic health of society and public confidence. It seeks to achieve economic justice and optimal allocation of resources, prevent corruption and financial mismanagement, promote the transparency of capital market information, capital market development, and create an active market, competition in the economy, economic development and industrial progress.

Keywords

• Investing
• Investors protection
• Accounting constructs
• Grounded Theory