Investigating the Effect of Professional Ethics Indicators on Financial Performance of Companies, Case study: Tehran Stock Exchange

Abstract

This study is aimed to investigate the role of each variable in the professional regulation of financial managers including integrity, objectivity, professional competence and care and confidentiality and its effect on professional ethics of financial managers, the effect of professional ethics on financial performance in Stock Exchange companies has been also investigated. In order to this a questionnaire has been provided and distributed among 206 financial managers of Tehran Stock Exchange. The collected data were investigated using PLS method. Based on the obtained results from structural model, the relationship among hidden variables of model (except integrity which is confirmed in confident level of 90 percent) was confirmed in confident level of 95 percent. Based on the obtained results, professional ethics of managers has been affected most by objectivity and professional competence. The results have also showed that professional ethics has significant effect on financial performance of companies.

DOI: 10.5901/mjss.2016.v7n3s2p185