An Analysis of Capital Structure and Ownership structure Resulted from Fraudulent Behaviors: The Role of Moderating Factors

Document Type : Original Article

Authors
Maryam Atarasadi 1
Seyed Yousef Ahadi Serkani 2
mohsen amini khouzani 3
1 PhD Student, Department of Accounting and Management, Firoozkooh, Branch, Islamic Azad University, Firoozkooh, Iran.
2 Associate Professor Accounting and Management, Firoozkooh, Branch, Islamic Azad university, Firoozkooh, Iran.
3 Assistant Professor Financial Economics, shahr ghods Branch, Islamic Azad university, shahr ghods, Iran.
10.30495/jik.2024.23250
Abstract
Financial structure of companies affects value of assets, stock prices and value of companies through cost of capital and net profit. The importance of this issue has stimulated opportunistic tendencies of managers to use these opportunities and apply fraudulent behaviors to guide financing structure of companies in order to protect interests of certain groups. Also, intervention of some internal and external factors limits or enhances the possibility of taking advantage of such opportunities. The purpose of this study is to explain the role and importance of some of these factors such as managers' distrust, audit quality and political communication in the process of influencing fraudulent behaviors on capital and corporate ownership structure to control the effective factors in this field. The statistical population of companies listed on the Tehran Stock Exchange and period is 2011-2021. The statistical sample of the research includes152companies and the hypotheses are tested using multivariate linear regression model and data analysis by panel method. Findings have shown that in addition to a significant positive relationship between occurrence of fraud with capital and ownership structure, the effects of moderation quality of auditing is negative and the interfering effect of Managers’ Overconfidence is increasingly on the positive relationship. Political relations do not have any moderating effects on the relationship between fraud with financial and ownership structure of companies.The results of this study emphasize the importance of audit quality and Managers’ Overconfidence and their control to manage effects of fraudulent misconduct on financing methods and capital structure of companies.
Keywords
Fraud
Capital Structure
Ownership Structure
Moderating Factors
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