Evaluating the Effectiveness of the Corporate Governance System in Iran Using Fuzzy Qualitative Comparative Analysis

Abstract

In recent years, the concept of corporate governance has garnered significant attention from researchers and practitioners alike. Corporate governance encompasses the processes, mechanisms, and communications through which a company is directed and controlled. This study aims to assess the effectiveness of Iran's corporate governance system employing the fuzzy qualitative comparative analysis (fsQCA) technique. The research is applied in nature and utilizes a quantitative approach, primarily through a structured questionnaire for data collection. The target population includes financial experts, managers, accountants from stock exchange holding companies, academics, authors of corporate governance reports, independent auditors, and users of these reports. A sample of 132 participants was selected based on the Morgan table, using simple random sampling methods. The defined factors were analyzed through fsQCA, which reveals various combinations that each company can consider to identify suitable solutions for enhancing its performance based on available financial and human resources. Unlike traditional statistical methods, fuzzy solutions provide diverse configurations for evaluating the effectiveness of corporate governance systems, contributing valuable insights to the existing body of knowledge.