Applied Research in Financial Reporting

Applied Research in Financial Reporting

A Comparative Evaluation of the Effects of Board of Directors Characteristics on Altman and Ohlson Bankruptcy Prediction Models: Evidence from Tehran Stock Exchange

Document Type : Original Article

Authors
Shokrolah Khajavi
Farhang Farajpour bandari
Abstract
The goal of this research is to study the comparative evaluation effects of board of directors on bankruptcy models of Altman and Ohlson in listed companies of Tehran Stock Exchange. To achieve this goal, three characteristics of board of directors including size, non-executive director percentage and whether a CEO serves as chairman, were chosen and their relation against Altman and Ohlson’s score were explored.
In order to attain the research goals, six hypotheses have been examined. The research sample includes 90 listed companies of Tehran Stock Exchange during the period of 2001 to 2010. Results of research hypotheses suggest that there is no significant relation between board of directors’ characteristics and Altman and Ohlson’s  score.
Keywords
Board of directors’ characteristics
Altman’s score
Ohlson’s score

  • Receive Date 12 December 2012
  • Revise Date 27 September 2017
  • Accept Date 13 February 2013