The impact of corporate governance on decision-making: The mediating role of imaginization between corporate governance and decision - making in Iran insurance industry

This paper examine the impacts of corporate governance on decision-making with theuse of imaginization as mediating variable for listed ۲۸ insurance industries in Irancountry. In this paper, corporate governance is proxied by a set of variables, containingboard’s size, board independence, board diversity, Number of boards committees andboard meeting held in a year. Also, imaginization is proxied as innovation, creation andinnovation designs using questioner method on the dataset of ۲۸ listed insuranceindustries in Iran for the period of ۱۰ years, from ۲۰۰۶ to ۲۰۲۰.the data were collectedfrom top management and using ۳۴۲ questioners from ۴۵۰ questionnaires for finalanalysis and remaining ۱۵ questionnaires excluded due to missing values. PLS-SEMused for analysis purpose and data collected by using simple random sampling technique.The result shows that board size, and, board independent and board diversity havepositive and significant effects on decision making. Also, the number of boardcommittees, Board diversity and board meetings held in a year has no effect on decisionmaking. Board size, board diversity, board meetings, board independence and the numberof board committees have a significant and positive effect on innovation as proxy ofimaginization. Moreover, creation and innovation designs have positive effects ondecision making. Imaginization is important to use imaginization constructs in measuringdecision – making through corporate governance. It is beneficial for insurance industriesto use this constructs in measuring decision making through corporate governance. Thefindings contributes to achieving a clearer understanding of the role of knowledgemanagement and decision-making styles to organization’s performance

Keywords:

corporate governance , imaginization , decision –making.