Examining the Role of Corporate Governance in Controlling Strategic Deviation and Optimizing the Debt Maturity Structure of Companies

Document Type : Research

Authors
Abolfazl Haji Mohammadi Aghkand 1
Mohammad Sadegh Shahbazi niya 2
1 Department of Accounting, Toloue Mehr University, Qom, Iran.
2 Department of Accounting, University Of Qom Unit, Qom, Iran.
10.22034/smajournal.2026.552930.1174
Abstract
This study examines the role of corporate governance in controlling strategic deviation and its impact on the debt maturity structure of companies listed on the Tehran Stock Exchange during 2012–2021. The data were collected from domestic and international articles for theoretical foundations and from stock exchange databases, including the Codal website. After data collection, the information was classified by year and stock symbol, entered into Excel, and transformed into panel data for analysis. A multivariate regression model with year and industry effects was applied using Stata software. Results indicate a significant negative effect of strategic deviation on short-term debt, showing that companies with higher strategic deviation prefer long-term debt to reduce short-term financial risks. Contrary to previous studies, institutional investors did not have a significant impact on short-term debt, possibly due to the unique conditions of the Iranian market. Innovatively, this research simultaneously investigates the role of corporate governance and strategic deviation in determining debt maturity structure. Practical implications highlight the necessity for managers to consider the adverse effects of strategic deviation in financial decisions and for institutional investors to carefully assess risks related to companies' divergent strategies. These findings contribute to expanding financial and managerial knowledge in the fields of debt structure and corporate governance and provide a practical framework to enhance financial decision-making in Iran's capital market.

Keywords

Subjects

Amihud, Y. (2002). Illiquidity and stock returns: cross-section and time-series effects. Journal of Financial Markets, 5(1), 31-56. https://doi.org/10.1016/S1386-4181(01)00024-6
Badaornehendi, Younes; Abbaszadeh, Shahla; and Shahamifar, Elmira. (2022). “The Effect of Strategic Deviation on Corporate Cash Holdings.” Silivica, 1564234. [In Persian] https://journals.iau.ir/article_696907.html
Barclay, M. J., & Smith, C. W. (1995). The maturity structure of corporate debt. Journal of Finance, 50(2), 609-631. https://doi.org/10.1111/j.1540-6261.1995.tb04797.x
Berger, A., Frame, W., & Miller, N. (2005). Debt maturity, risk, and asymmetric information. Journal of Finance, 60(6), 2895-2923. https://doi.org/10.1111/j.1540-6261.2005.00820.x
Danayi-Fard, H., Alvani, S. M., & Azar, A. (2021). Qualitative research methodology in management: A comprehensive approach [In Persian]. 7th ed. Safar. https://www.iranketab.ir/book/134979
Dang, V. A., & Phan, H. V. (2016). CEO inside debt and corporate debt maturity structure. Journal of Banking & Finance, 70, 38-54. https://doi.org/10.1016/j.jbankfin.2016.05.009
Datta, S., Doan, T., & Iskandar-Datta, M. (2019). Policy uncertainty and the maturity structure of corporate debt. Journal of Financial Stability, 44, 100694. https://doi.org/10.1016/j.jfs.2019.100694
Dong, X., Chan, K. C., Cui, Y., & Guan, J. X. (2021). Strategic deviance and cash holdings. Journal of Business Finance & Accounting, 48(3-4), 742-782. https://doi.org/10.1111/jbfa.12487
Diamond, D. (1991). Debt maturity structure and liquidity risk. The Quarterly Journal of Economics, 106(3), 709-737. https://doi.org/10.2307/2937924
Hasan, M. M., Taylor, G., & Richardson, G. (2021). Brand capital and stock price crash risk. Management Science, forthcoming. https://doi.org/10.1287/mnsc.2021.4197
Hasan, M. M., Asad, S., & Wong, J. B. (2022). Oil price uncertainty and corporate debt maturity structure. Finance Research Letters, 46, 102278. https://doi.org/10.1016/j.frl.2021.102278
Haghparast, A., Abbasi, M., Salehi, A.H., & Vahidian Ghafari, R. (2025). "Investigating the Impact of Artificial Intelligence on the Quality of Managerial Accounting Information (A Case Study of Companies Listed on the Stock Exchange)". Strategic Management Accounting, 2(2), 79–98. [In Persian]  https://doi.org/10.22034/smajournal.2025.512751.1009
Jafari, Ali; Maleki, Atefeh; and Bidarvand, Reza. (2021). "The Relationship between Financial Statement Comparability and Debt Maturity Structure." Accounting and Management Outlook Quarterly, 4(46), 1-15. [In Persian]  https://www.jamv.ir/article_136865.html
Namifard Tehran, F. (2025). "Blockchain technology model in the management accounting unit of manufacturing companies", Strategic Management Accounting, 1(1), 107-138. [In Persian]  https://doi.org/10.22034/smajournal.2025.513561.1004
Norouzi, M., Azizi, F., & Esko, V. (2025). "The Impact of Financial Innovation on Corporate Risk Management with Emphasis on the Moderating Role of Financing Constraints". Strategic Management Accounting, 2(1), 70–90. [In Persian] https://doi.org/10.22034/smajournal.2025.519378.1016
6         The Role of Corporate Governance in Controlling …                Haji Mohammadi & Shahbazi Nia
 
Nufazil, A. A. (2021). "Stock liquidity and corporate debt maturity structure: Evidences from Indian firms". The Quarterly Journal of Finance. Vol 42(7), 1754-1764. https://doi.org/10.1002/mde.3342
Rajan, R., & Winton, A. (1995). Covenants and collateral as incentives to monitor. The Journal of Finance, 50, 1113-1146. https://doi.org/10.1111/j.1540-6261.1995.tb04052.x
Sagira, S.P., Shabnaz, A., & Mostafa, M. H. (2022). Strategic deviation and debt maturity structure, Finance Research Letters, Vol 50. https://doi.org/10.1016/j.frl.2022.103317
Seyedsadeghi Namin, Tuba; Shahvalizadeh, Adel; and Aghajani, Vahdat. (2022). "Examining the Relationship between Stock Liquidity and Debt Maturity Structure with Emphasis on the Role of Agency Theory in Companies Listed on Tehran Stock Exchange." Management and Accounting Inquiry, 2(2), 153-170. [In Persian]  https://civilica.com/doc/1509582/
Taghipour, Maryam; Chavoshi, Seyed Kazem; and Afshari Rad, Majid. (2021). “Examining the Relationship between Strategic Deviation and Stock Return Synchronicity in Companies Listed on the Tehran Stock Exchange.” Proceedings of the 7th International Conference on Management and Accounting Sciences, Tehran, 1257808. [In Persian]  https://www.google.com/amp/s/civilica.com/doc/1257808/amp/
Terra, P.R.S., (2011), “Determinants of Corporate Debt Maturity in Latin America”, European Business Review 23, PP.45-70. https://doi.org/10.1108/09555341111097982
Ye, K., Guan, J. X., & Zhang, B. (2021). Strategic deviation and stock return synchronicity. Journal of Accounting, Auditing and Finance, 36(1), 172-194. https://doi.org/10.1177/0148558X18802551
Strategic Management Accounting
Volume 2, Issue 4 - Serial Number 4
Winter
Winter 2026
Pages 67-91