The Contexts Genealogy of the Toxic Assets Emergence in Capital Market Companies: The Application of a Paradigmatic Framework

Document Type : Original Article

Authors

1 Ph.D. Candidate, Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran

2 Associate Professor, Department of Accounting, Shahrood Branch, Islamic Azad University, Shahroud, Iran

3 Assistant Professor, Department of Accounting, Shahrood Branch, Islamic Azad University, Shahroud, Iran

10.48308/jfmp.2024.105029

Abstract

Purpose: With the occurrence of financial crises, many commercial companies that have extensive activities at the level of the capital market, suffer from the poisoning of assets that, due to the lack of trading attractions, the market value of these assets is lower than the nominal and registered value in the financial statements. The evaluation of these assets are usually hidden in the financial functions of companies due to their complexity, which by accumulating these assets, capital market companies face stock price crash risk. The purpose of study is genealogy of the contexts of the emergence of toxic assets in capital market companies by the application of a paradigmatic framework.
Method: In this study, first through interviews with experts, open codes resulting from the identification of the nature of toxic assets are created. During the interview, the questions were constantly adjusted based on the conditions of the interview and the information of the interviewees, so that the interview path does not deviate from the main stream of the nature of the phenomenon under investigation. Therefore, by designing a protocol that included the main streams of the study, the main path of interviews with experts was designed so that open codes could be extracted. Then, by adapting the content of the open codes created based on repetition and conceptual similarity, they are transformed into propositional themes so that in order to better understand the phenomenon under investigation, with the participation of empiricists in the context of the study, the use of the paradigm framework as the philosophy of this implementation method is created. Therefore, in the next step, with the formation of the focal group, the identified statements should be evaluated in order to place each of the statements in specific types based on the semantic structure of the paradigm model, through the created hierarchical checklist.
Findings: The results in the qualitative section, after removing the excesses and repeating the similar open codes, indicate the identification of 51 contextual propositions, so that based on the suitability of the content with similar researches, it is possible to generalize it to the second step of the study. The results in the quantitative part, based on the established paradigm framework, indicate the typology of 51 contextual propositions confirmed by the qualitative part in 5 parts: causal conditions, context, interventionist, strategies and consequences.
Conclusion: The obtained results show that under the influence of comprehensive aspects such as managerial functions to economic and structural functions, although the strategies of concealment or positive persuasion of the information needs of the stakeholders may partially delay the occurrence of the negative effects of toxic assets on the companies' functions but the accumulation of these assets over time, causes the companies to be exposed to negative news due to the lack of timely communication of information to the stakeholders, which is likely to be accompanied by a fall in the stock price in the near future.

Keywords

References

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Financial Management Perspective
Volume 14, Issue 46
2024
Pages 93-131

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