Developing a Model for Firms Survival in Iranian Capital Market: Based on the "Puteong" model

Document Type : Research Paper

Authors

1 Ph.D. Student, Department of Accounting, Bonab Branch, Islamic Azad university, Bonab. Iran

2 Associate Prof., Department of Accounting, Bonab Branch, Islamic Azad University, Bonab, Iran

3 Associate Prof., Department of Financial Managment,Alzahra University, Tehran, Iran

4 Assistant Prof., Department of Accounting, urmia Branch, Islamic Azad University, urmia, Iran

Abstract

Companies face everlasting challenges to survive. Successful introduction to a market and competition is always with a high level of uncertainty and is limited in many ways. Thus, a huge number of companies especially the ones founded recently leave the capital market very soon. Theoretically embedded in Putang (2011)’s  model, this study is to develop a model for the survival of companies using the causative relationships between sustainability of accounting and survival of companies with an emphasis on moderating role of desirable market value, motivational commitment of employees and acceptance of prominent stakeholders.  The population in this study included a set of selected companies. The data were also collected using a standard questionnaire. Firstly, the reliability and validity tests were administered on sample data. Then, based on the model of Lineal Structural Relations, the data were analyzed. Findings revealed that that survival of companies is affected by acceptance of prominent stakeholders. In other words, recognition of the overt role of stockholders, responsibility toward welfare in society and ethical responsibilities increase the survival rate for companies. Furthermore, sustainability of accounting (awareness of accounting ethics, voluntary accounting activities, transparency of accounting ideology, divulging human capital and reporting social responsibility) significantly affect desirable market value, motivational commitment of employees and acceptance of prominent stakeholders.

Keywords

Main Subjects

References

 
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Financial Management Strategy
Volume 7, Issue 4 - Serial Number 27
January 2019
Pages 151-171

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History

  • Receive Date: 21 May 2019
  • Revise Date: 31 August 2019
  • Accept Date: 02 September 2019

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