Effect of Board's Characteristics on Earnings Informativeness by Considering the Moderating Role of Investor Sentiment

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting,University of Bojnord, Bojnord

2 Master of Accounting Accounting, University of Bojnord, Bojnord,

Abstract

Based on the conventional theories, it is expected that investors be informed about profitability and make the decisions rationality without any emotional behaviors. The role of managers in strengthening the mechanisms of the company can increase the reliability of the profitability which is in itself a factor affecting the investor sentiment. Therefore, the purpose of this study is to investigate the Effect of Board's Characteristics on Earnings Informativeness by Considering the Moderating Role of Investor Sentiment.
This research is a library and analytical-scientific study and is based on the analysis of panel data (data panel). In this study, financial information of 136 companies listed in Tehran Stock Exchange during the 2010-2017 (952 companies-years) was investigated. Eviews software was used to analyze the results of the research.
Based on the findings of this research, there is a negative and significant relationship between the Earnings informativeness and investor sentiment, as well as board's characteristics, including the independence, size and duration (experience) of the board, have a significant and direct effect. In this examination of the relationship between Earnings informativeness and the investor sentiment, it became clear that the independence, size and experience of the board would strengthen the negative relationship between them. In other words, these attributes contribute to the informativeness raising and hence less investor sentiment.

Keywords

Main Subjects

References

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Financial Management Strategy
Volume 8, Issue 3 - Serial Number 30
October 2020
Pages 87-118

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History

  • Receive Date: 26 April 2019
  • Revise Date: 27 June 2019
  • Accept Date: 05 July 2019

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