A Mathematical Model for Measuring Corporate Governance using Multi-Criteria Decision Making (MCDM)Technique

Advances in Mathematical Finance and Applications

مقاله 5، دوره 8، شماره 3، مهر 2023، صفحه 809-828   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2021.1920820.1548

نویسندگان

Maryam sadeghi¹؛ Hossein Panahian¹؛ Mehdi Safari Gerayli^{* 2}؛ Meysam Arabzadeh¹؛ Rahman Saedi³

¹Department of Accounting, Kashan Branch, Islamic Azad University, Kashan,Iran

²Department of Accounting, Bandargaz Branch, Islamic Azad University, Bandargaz, Iran

³Department of Accounting, Dolatabad Branch, Islamic Azad University, Isfahan, Iran

چکیده

There has not been presented any comprehensive index for Corporate Governance in spite of its crucial role in resolution and responsiveness. Although diverse methods have been sought for measuring the Corporate Governance in the previous studies, in this study, a comprehensive index is proposed for measuring Corporate Governance taking other indexes into account through mathematical equations. For testing the designed model’s functionality, a set of data related to 149 firms from 2014 to 2019 has been used jointly, too. To do so, a questionnaire, which asks the experts their idea about the weight and significance of the criteria of measuring the Corporate Governance of the firm, is made and distributed and the weight and significance of the criteria were determined through one method of multi-criteria decision model (Shannon Entropy). To measure the changeable hidden relationship which exists in this study of the Corporate Governance, provided with the measurement items, a confirmatory factorial analysis was taken, too; results show that the supposed model has been a proper index for Corporate Governance. This mixed index includes criteria such as the board of directors' size, independence, meetings, and its education, the CEO's permanence, the size, independence, financial specialty, financial experience, tenure and the meetings of the auditors hip committee, ownership concentration, organizational ownership, governmental ownership, deals with the dependent persons, the quality of the disclosure, proper information and weaknesses if the internal controls,

کلیدواژه‌ها

Corporate Governance؛ Comprehensive index for corporate Governance؛ Multi-criteria decision model

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