The relationship between the size of firms and political costs

Subject Areas : Financial Knowledge of Securities Analysis

Ahmad Yaghoobnezhad ¹ , Nemat Javadi ²

1 - (نویسنده مسئول و طرف مکاتبه)
2 - ندارد

Received: 2009-12-01 Accepted : 2010-02-04 Published : 2009-12-22

Keywords: political costs, size of firms, companies assets,

Abstract :

This research studies the relationship between the size of firms and political costs of the companies admitted in stock exchange of Tehran. The size of companies has been computed based on average of 3 years assets (2005-2006-2007) and The center years average of company. Accounting to the literature applied in past researches, the political costs has been considered as total costs including tax, insurance, interest free contributions , expenses for preserving environment , and contributing sport activities . Studying relationship between the size of firms and political costs can help the managers to initiate long-term plant. The achieved results show a significant relation between the size of firms and political costs.