Impact of moderating managerial ownership on the relationship between risk taking and financial distress

Corporate Governance is a multi-disciplinary topic that is considered and discussed in various disciplines such aslaw, economics, management, and political science. Correct corporate governance practices are set up throughindependent members of the board of directors and committees under their supervision, and ultimately achieve theirgoals by enhancing the transparency and accountability of the executive management. On the other hand, one of themost important information that can help economic decision-makers in economic decision-making and optimalallocation of resources is identifying the variables predicting bankruptcy and financial distress in companies. Hence,finding financial indicators of financial distress has always been one of the most popular areas in financial research.The purpose of this study was to investigate the moderating role of managerial ownership on the relationshipbetween risk taking and financial distress in Tehran Stock Exchange during the period from ۲۰۱۱ to ۲۰۱۶. Theresults of the analysis of research data suggest that managerial ownership did not have a moderating effect on therelationship between risk-taking and financial distress.

Keywords:

managerial ownership , risk taking , financial distress