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How corporate financial policies response to activist managers: evidence from Iraq

Year: 2024

Type: article

Abstract: This paper investigates whether the presence of activist managers in publicly traded firms affects financial policies. Our results show that activist managers increase managers’ strategic planning and corporate efficiency, confirming the notion that managerial-owned firms are more efficient than other counterparts. We find that the presence of activist managers increases their capital expenditure and has a positive effect on firm dividend payments. This efficiency leads ultimately to an increase in firm performance. Our results have important implications for investors and policy makers in Iraq and other under-developed markets where managers’ investors usually have substantial equity stakes in public firms. Keywords: Managerial Activism, Financial Policy, Financial Decisions, Iraq.

Source: Finance & Accounting Research Journal

DOI: 10.51594/farj.v6i12.1772

Authors: Mohammed Imad Abdul Aziz Mahdi, Dr, Raghed Haqi Khaleel, Zahraa Naser Ali

Institutions: University of Tikrit, Ministry of Education, Al Mamon University College

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W4405596138

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