Examining the Relationship between Corporate Governance and the Corporate Performance Valuation

Authors

  • Ahmad Sarlak Department of Economical science, Faculty of Management, Islamic Azad University, Arak, Iran
  • Forogh Khorshidvand Department of Accounting, Faculty of Humanities, Islamic Azad University, Delijan ,Iran
Abstract:

The aim of this study was to investigate the relationship between corporate governance characteristics and valuation of the firm's performance in Iran. After designing performance evaluation indexes, information of transactions made during the five-year study from 2011 to 2015 from the Stock Exchange were collected and the sample consists of 129 companies was selected by systematic elimination that was a total of 645 year-firm. In this study we used the linear regression and correlation for testing the research hypotheses, and Eviews software for analysing the data and testing hypotheses. What can be said in summary and conclusion of research hypotheses test is that, there are a significant and positive relationship between the intensity of supervision, the stock in the hands of the board, executive's changes and board size with the company's performance; in addition, we found a significant and negative relation between firm size and financial leverage with the company's performance. The other results showed no significant and positive relationship between the number of board meetings and the firm's performance; the results in this study corresponded to the documentation mentioned in the theoretical framework and financial literature.

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Journal title

volume 2  issue 3

pages  29- 39

publication date 2017-09-01

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