Impact of Myopic Management on Efficiency of Companies with Moderating Role of Corporate Governance Quality in Companies in Tehran Stock Exchange

Abstract

Efficiency is among the most important criteria that investors look for the factors effecting it, to find appropriate opportunities to invest. The objective of this study is to investigate the impact of myopic management on efficiency of companies with moderating role of corporate governance quality in a sample of 101 companies, listed in the Tehran Stock Exchange, in the years 2007-2014. The hypotheses testing were proceeded with the panel data multiple regression analysis. The results showed that myopic management has significant and negative effects on efficiency of companies, and quality of corporate governance has moderating role in this relationship. Myopic managers by reducing costs aiming at long-term benefits, decrease companies’ value, regarding that such behavior of managers could be reduced by promoting the level of watching on management.

Keywords

• myopic management
• efficiency of company
• quality of corporate governance