바로가기메뉴

본문 바로가기 주메뉴 바로가기

logo

ISSN : 1738-3110

Article Contents

Next
Early Access e-Submission

Vol.11 No.11
Citation Share

Association between Corporate Governance and Corporate Performance in Iran

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2013, v.11 no.11, pp.5-11
https://doi.org/https://doi.org/10.13106/jds.2013.vol11.no11.5.
Moradi, Mahdi
Shiri, Mahmood Mousavi
Salehi, Mahdi
Piri, Habib
Moradi,, M. , Shiri,, M. M. , Salehi,, M. , & Piri,, H. (2013). Association between Corporate Governance and Corporate Performance in Iran. The Journal of Distribution Science, 11(11), 5-11, https://doi.org/https://doi.org/10.13106/jds.2013.vol11.no11.5.
  • Downloaded
  • Viewed
PDF Download

Abstract

Purpose - Considering corporate companies that are continually growing and bearing in mind the theory of agency, how confident can stakeholders be about their benefits in relation to managers' decisions? Previous research has indicated that the type of corporate governance can have an effective impact on companies' performance. The current study aims to investigate the impact of ownership structure on listed companies on the Tehran Stock Exchange. Research Design, Data, and Methodology - Through use of the correlation coefficient, the results indicate a positive correlation among the percentage of common stock held by board members, the percentage of non-executive board members, and separation of the positions of chairperson of the board of directors and managing director. Results - Based on the return on assets index, only the correlation between the proportion of ownership of the managing director and financial investment company ownership is significant. Conclusion -Managers can potentially make decisions that benefit themselves but are detrimental to shareholders' interests. Corporate governance is a factor that can mitigate agency costs. Corporate governance comprises the laws, regulations, structures, processes, cultures, and systems that lead to the achievement of objectives such as accountability, transparency, justice, and stakeholders' rights.

keywords
Corporate Governance, Board Ownership, Tobin's Q, Corporate Performance

Reference

1.

Baysinger, B., & Butler, H.N. (1985). Corporate Governance and the Board of Directors: Performance Effects of Changes in Board Composition. Journal of Law, Economics and Organization, 1(1), 101-124.

2.

Beni, L., & Efrat, T. (2004).Market Value Maximizing Ownership Structure when Investor Protection is Weak, Discussion Paper No. 8-200.

3.

Bhagat, S., & Bolton, B. (2008). Corporate governance and firm performance. Journal of Corporate Finance, 14, 257-273.

4.

Chidambaran, N.K., & Ivan, E.B. (2005). Board Monitoring and Firm Risk, EFA 2005 Moscow Meetings Paper.

5.

Cho, M.H. (1998). Ownership Structure, Investment and the Corporate Value: An Empirical Analysis. Journal of Financial Economics, 47, 103−121.

6.

Coles, J.,McWilliams, W., Victoria, B., & Sen, N. (2001). An examination of the relationship of governance mechanisms to performance. Journal of Management, 27, 23-50.

7.

Dehaene, A., De Vuyst, V., & Ooghe, H. (2001). Corporate performance and board structure in Belgian companies. Long range planning, 34, 73-88.

8.

Demsetz, H., & Villalonga, B. (2001). Ownership Structure and Corporate Performance. Journal of Corporate Finance, 7, 209−233.

9.

Faccio, M., & Lasfer, M. (2000). Do Occupational Pension Funds Monitor Companies in which they Hold Large Stakes?. Journal of Financial Economics, 6, 71-110.

10.

Fosberg, R.(1989). Outside Directors and Managerial Monitoring. Akron Business and Economic Review, 20(1), 24-32.

11.

Jensen, M.C., & Meckling, W.H. (1976). Theory of the firm: Managerial Behavior, Agency cists and Ownership Structure. Journal of financial Economics, 3,305-360.

12.

Lefort, F., & Urzua, F. (2008). Board independence, firm performance and ownership concentration: Evidence from Chile. Journal of Business Research, 61, 615-622.

13.

Loderer, C., & Martin, K. (1997). Executive Stock Ownership and Performance: Tracking Faint Traces. Journal of Financial Economics, 45, 223−255.

14.

Mallin, C.A. (2007). Corporate Governance (2nd edition). Oxford: Oxford University Press.

15.

Moody-Stewart, M. (2009). Mitigating the effects of the global financial crisis on Africa: the role of governance and sustainable development. Colloquium Papers University of Stellenbosch Business School (USB). Retrieved November 22, 2010, from http://www.governance.usb.ac.za/current- projects/colloquia.aspx

16.

Morck, R., Shleifer A., & Vishny, R. (1988). Management Ownership and Market Valuation. Journal of financial Economics, 20,293-315.

17.

Postma, T., Hans V., & Sterken, E. (2000). Top management team and board attributes and firm performance in the Netherlands. Retrieved November 22, 2009, from http://som.eldoc.ub.rug.nl/report/19951991/theme/1999/99E20/.

18.

Shleifer, A., & Vishny, R. W., (1997). A survey of Corporate Governance. Journal of Finance, 52, 737−783.

19.

Tesaia, H., & Gu, Z. (2007). The Relationship between Institutional Ownership and Casino Firm Performance. Hospitality Management, 26, 517-530.

20.

Yermack, D. (2004). Remuneration retention and reputation incentives for outside directors. Journal of Finance, 59, 2281-2308.

The Journal of Distribution Science

Early Access e-Submission OA Policy