The impact of good governance on stock returns in Tehran Stock Exchange

Subject Areas : Financial Knowledge of Securities Analysis

S. Abdolmajid Jalaei ¹ , Hedyeh Mir ² , Akbar Rahimipour ³

1 - Associate Professor of Shahid Bahonar University
2 - Islamic Azad University, Sirjan Branch
3 - Islamic Azad University, Sirjan Branch , Young Researchers Club

Received: 2014-07-05 Accepted : 2014-09-23 Published : 2015-10-02

Keywords: Good governance, corruption indices, Stock Returns,

Abstract :

Corruption is a problem that theoretical modeling of complex data access trace collected from an experimental point of view, difficult and politically sensitive it is to fight.'s Economic boom boom one of the most important factors stock markets ROI security is therefore the main research question is whether good governance on stock returns in the stock market affects?To answer the question, a sample of 52 companies listed in Tehran Stock Exchange for the period 1390-1385 were selected through panel data approach is to evaluate the impact of corruption Brbazdhy stock. Results have shown that good governance as conditions move towards improving the efficiency of the stock increases. Since it is important that indicators of good Hmkrany an agent for security and stability in the market and trading terms, and thus can provide a boost to the market. Therefore, based on the results of this study can be said to create a stable market conditions, and establish long-term returns Should be left to the good governance and corruption indicators improved, in which case the stock will move only by symbols of the real economy.