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The relation between Sukuk issuance and financial performance: overconfidence and financial and accounting expertise of managers
Azam Valizadeh Larijani 1, Niloofar Zamani2 , Fatemeh Shirzadi3
1- Assistant Professor, Department of Accounting, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran. (Corresponding Author) , a.valizadeh@alzahra.ac.ir
2- MSc. Student of Accounting, Faculty of social sciences and economics, Alzahra University, Tehran. Iran. zamaniniloo321@gmail.com
3- MSc. Student of Accounting, Faculty of social sciences and economics, Alzahra University, Tehran. Iran. fatemehshirzadi7798@gmail.com
Abstract:   (298 Views)
Companies use different financing sources to carry out their operational and investment activities. Available debt capacities is one of these financial resources. One of the emerging sources of financing for companies in the country's capital market is the issuance of Islamic debt securities (sukuk) which have significant benefits for them. Therefore, the purpose of this research is to examine the relation between the amount of sukuk issuance and the company's financial performance. Also, considering that the members of the company's board of directors, as one of the main factors of corporate governance, have significant effects on the company's strategic decisions, in this research, the effect of financial expertise and overconfidence of managers as a moderating variable on the relation between the amount of sukuk issuance and the company's financial performance are examined. The statistical population of this research is the companies listed on the Tehran Securities Exchange and Iran Fara Bourse between 2011 and 2022. In order to test the hypotheses of the research, multivariable linear regression was used.The results of the research have shown that there is a significant positive relation between the amount of sukuk issuance and the company's performance. Also, according to the obtained results, the financial expertise of managers intensifies the positive relationship between the amount of sukuk issuance and company performance; This is while managers' overconfidence weakens the relationship between the amount of sukuk issuance and the company's performance. The findings of this research can be used by all companies applying to use sukuk, as well as the Securities and Exchange Organization as the body that oversees the process of issuing said bonds.
Keywords: sukuk, managers' overconfidence, financial and accounting expertise of managers, Islamic debt securities.
     
Type of Study: Research | Subject: Special
Received: 2023/11/9 | Accepted: 2024/03/19
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