The effect of corporate governance system on avoiding companies getting caught in the Ponzi trap (Case study: Tehran Capital Market)

Subject Areas : Ethics and accounting

Mojtaba Rezaei ¹ (PhD. Student, Department of Accounting, Faculty of Humanities, Zahedan Branch, Islamic Azad University, Zahedan, Iran.)
Fardin Mansouri ² (Assistant Professor, Department of Accounting, Faculty of Management and Economics, Sistan and Baluchestan University, Zahedan, Iran)
Mahdi Faghani ³ (Assistant Professor, Department of Accounting, Faculty of Management and Economics, Sistan and Baluchestan University, Zahedan, Iran)

Received: 2021-09-08 Accepted : 2021-11-07 Published : 2021-11-22

Keywords: Corporate Governance, Ponzi Trap, capital markets, Tehran Capital Market, Money Making,

Abstract :

The purpose of this study was to investigate the effect of a corporate governance system on avoiding companies getting caught in the Ponzi trap. The research method is applied. The statistical population of this study is Tehran capital market companies. The research period is from 1394 to 1398. The statistical population of the research was 132 companies selected as a sample. The data collection methods were library and field that the library method was used to formulate theoretical foundations and the field method was used to test research hypotheses. The data collection tool was the databases of companies that are members of Tehran Capital Market, which was obtained from the Kedal website. In this study, correlation test and regression analysis and Eviews software were used to test the research hypotheses and determine whether or not it was significant. According to the findings of the study, the management system with good, average, and poor performance affects companies in the Ponzi trap and it can be concluded that corporate governance systems are effective in companies avoiding the Ponzi trap. Therefore, companies have to use domestic and international capital markets to finance themselves. Through the system of governance, they can play a key role in the decision-making of investors and lenders, and this will make these companies less inclined to Money Making, so, in this case, the companies will be more careful about getting caught in the Ponzi scheme.

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