Investigating the moderating role of management optimism and Myopia on the relationship between contingent factors and financial stability

Articles in Press

Document Type : Research Paper

Authors

1 associate professor

2 MSc. Student in Accounting. Faculty of Literature and Humanities, Ilam University, Ilam, Iran.

3 msc. student in accounting faculty of literatures and huminities ilam university ilam. iran

10.22103/jak.2024.23077.4030

Abstract

Abstract

Objective: Financial stability is different from other non-economic goals such as ethical behavior, social responsibility, environmental behavior, etc. Achieving the goal of financial stability directly benefits the company's reputation, public image, and standing in society, therefore, it is attractive to a large portion of its customers or shareholders. Empirical findings have shown that the specific characteristics of the company, including financial capacity, leverage, firm size and firm age are important factors that affect the level of financial stability. Contingent factors are factors that affect the specific characteristics of an organization in order to be more effective and can include external factors such as social relations, global awareness of environmental management and technology dynamics, as well as internal factors such as leadership commitment, integration of sustainability with the main business strategy. Contingency theory is based on the claim that there is no common sustainability performance that can be applied in the same way to all companies under the same conditions. Financial stability has become the main goal of management, as documented in most industrialized countries, through corporate governance codes recognized as good governance, despite differences in implementation. Therefore, a question is raised about the effect of special contingency factors on financial stability and the role of managers' behavioral dimensions on this relationship.

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Journal of Accounting Knowledge

Articles in Press, Accepted Manuscript
Available Online from 22 July 2024

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History

  • Receive Date: 27 March 2024
  • Revise Date: 13 June 2024
  • Accept Date: 22 July 2024

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