Document Type : Research Paper

Author

Assistant Professor, Department of Accounting, Hakim Toos Higher Education institute, Mashhad, Iran.

Abstract

Women are more risk-averse and more conservative in making investment decisions.This research examines the relationship between the gender diversity of the board of directors and the investment inefficiency of companies listed on the Tehran Stock Exchange. The argument is that companies with gender diversity of the board of directors have lower investment inefficiency than companies without gender diversity of the board of directors, and the presence of female directors in the board of directors has a negative relationship with investment inefficiency.
This research is quasi-experimental. Also, considering that the results of the research deal with solving a specific problem or issue, it is applied in terms of purpose and in terms of method, correlation analysis with regression approach. Considering that this research uses past information to test hypotheses, it is retrospective. In order to examine this issue, research hypotheses were selected based on a statistical sample consisting of 108 stock companies (based on systematic exclusion) during the years 2017 to 2021 (540 observations) and tested using multivariate regression models.
The analysis of the research sample shows that there is a significant negative relationship between the gender diversity of the board of directors and investment inefficiency. The results also showed that board independence moderates the relationship between board gender diversity and investment inefficiency. But CEO tenure does not moderate the relationship between board gender diversity and investment inefficiency.

Keywords

Main Subjects

Aflatooni, A., & Khazaei, M. (2016). Investigating the effect of accruals quality and disclosure quality on labor investment inefficiency. Accounting and Auditing Review, 23(3), 269-288.
Akron, S., Demir, E., Díez-Esteban, J. M., & García-Gómez, C. D. (2022). How does uncertainty affect corporate investment inefficiency? Evidence from Europe. Research in International Business and Finance, 62, 101752.
Barari, K. (2014). Factors affecting the quality of disclosure in Iran. Master's Thesis. Gilan University. (In Persian)
Chen, H. J., & Lin, S. H. (2013). Managerial optimism, investment efficiency, and firm valuation. Multinational Finance Journal, 17(3/4), 295-340.  https://ssrn.com/abstract=2619673
Cheng, P., Man, P., & Yi, C. H. (2013). The impact of product market competition on earnings quality. Accounting and Finance, 53(1), 137–162. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-629X.2011.00457.x
Elhaei Sahar, M., & Eskandar, H. (2017). The effect of financial reporting quality and debt maturity on types of investment inefficiency. Financial Accounting and Auditing Research, 9(35), 95-120. https://dorl.net/dor/20.1001.1.23830379.1396.9.35.5.4 (In Persian)
Farooq, S. (2020). Board gender diversity and investment inefficiency: An empirical evidence from the United Kingdom: A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy at Lincoln University. Doctoral Dissertation. Lincoln University. https://hdl.handle.net/10182/13462
Ghodarzi, A., & Babazadeh Shirvan, H. (2016). The Study of financial reporting quality،debt maturity, and investment efficiency in Listed Firms at Tehran Stock Exchange (TSE). Management Accounting, 8(27), 105-117. https://jma.srbiau.ac.ir/article_8496.html?lang=fa (In Persian)
Guttman, I., & Meng, X. (2021). The effect of voluntary disclosure on investment inefficiency. The Accounting Review, 96(1), 199-223. https://doi.org/10.2308/tar-2018-0749
Hejazi, R., Farhadi, H., & Weysihesar, S. (2019). Investigation of relationship between earnings management and investment inefficiency with the emphasis on the role of agency costs. Journal of Accounting and Social Interests, 9(3), 27-51. https://doi.org/10.22051/ijar.2019.23624.1466 (In Persian)
Hosseini, S. E., & Jalaei, M. (2022). Investigating the moderating role of audit quality on the relationship between tax avoidance and investment inefficiency. Iranian Journal of Accounting, Auditing and Finance in the Islamic Environment, 1(1), 95-122.
Imani, M., Abdi, M., & Azemi Olum, M. K. (2017). Investigating the impact of gender diversity in the audit committee on the audit fees of companies listed in Tehran Stock Exchange. Accounting and Auditing Review, 24(3), 303-322. https://dorl.net/dor/20.1001.1.26458020.1396.24.3.1.6 (In Persian)
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Minab, M. & Matinfard, M. (2017). Examining the relationship between tax avoidance and investment inefficiency. Quarterly Journal of Modern Research in Accounting and Auditing, 2(5), 159-179. http://jnraa.khatam.ac.ir/&url=http://jnraa.khatam.ac.ir/article_81579.html (In Persian)
Mohammadzadeh Salteh, H. (2016). The Effect of Investment Opportunities, Growth and Capital Productivity on Firm Performance of Listed Companies in Tehran Stock Exchange. The Journal of Productivity Management, 10(1), 141-162.
Mosalli, M. & Mohammadpoor, M. (2019). The effect of the presence of the board of directors and the female financial manager on the profitability of companies admitted to the Tehran Stock Exchange. Scientific Quarterly Specialized Research in Accounting and Economic Science, 2(3), 85-98. http://www.jares.ir/post.aspx?id=543 (In Persian)
Mousavinejad, S.Z. & Khodamoradi, M. (2015). The effect of the quality of financial information on investment efficiency in the Tehran Stock Exchange, Comprehensive Conference on Management and Accounting Sciences, Tehran, Secretariat of the Comprehensive Conference on Management and Accounting Sciences. https://civilica.com/doc/605810 (In Persian)
Movahhedi, A. (2014). The relationship between earnings management and financial constraints during the crisis. Master's Thesis. University of Science and Research. (In Persian)
Nazemi, A., Momtazian, A. L. & Salehinia, M. (2013). The relationship between corporate governance and efficiency of inventory management (Evidence from Tehran Stock Exchange). Empirical Studies in Financial Accounting, 11(42), 157-184.
Ren, C. (2016). The approach of accounting information quality on investment efficiency—empirical evidence from chinese listed companies. Theoretical Economics Letters, 6(2), 330-337. http://dx.doi.org/10.4236/tel.2016.62037
Samsami, M. (2014). The effect of cash flows on profit management. Master's Thesis. Gilan University. (In Persian)
Soheilyfar, F., Ramezan Ahmadi, M., Jorjor zadeh, A., & Nasiri, S. (2020). Deviation from optimal capital structure and inefficiencies of investment. Journal of Accounting Knowledge, 11(2), 107-137.
   10.22103/JAK.2020.13651.2934 (In Persian)
Yaghoobnezhad, A., Bani Mahd, B., & Shokri, A. (2012). Presentation of a model for measuring earnings management in Tehran listed firms. Management Accounting, 5(1), 1-16.
Yan, S. (2015). Managerial attitudes and takeover outcomes: Evidence from corporate filings. Journal of International Financial Markets, Institutions and Money, 35, 30-44. https://doi.org/10.1016/j.intfin.2014.11.017
Yu, C. (2023). Board gender diversity and investment inefficiency. Journal of Economics and Business, 106-107. 
Zhai, J., & Wang, Y. (2016). Accounting information quality, governance efficiency and capital investment choice. China Journal of Accounting Research, 9(4), 251-266. https://doi.org/10.1016/j.cjar.2016.08.001