The Relationship Between Managerial Ownership and Performance of Pharmacy Firms

Subject Areas :

Ali Mohamad Ahmadvand ^{1 *} , Sedighe Kamran Rad ² , Reza Kamran Rad ³

1 - دانشیار دانشگاه امام حسین(ع)
2 - کارشناس ارشد حسابداری
3 - دانشجوی کارشناسی ارشد مهندسی صنایع

Received: 2015-05-10 Accepted : 2015-05-10 Published : 2011-08-23

Keywords:

Abstract :

This paper examines the relationship between managerial ownership index as one of the mechanisms of corporate governance and performance criteria of pharmaceutical corporate accepted in Tehran Stock Exchange during the year 2004 to 2008. First, the effect of independent variable, managerial ownership, over the response variables, Q- Tobin ratio (a measure of corporate performance) and capital structure are surveyed separately and then other control factors are added to linear regression model. Necessary data are collected the site of research management organization, development Islamic Studies of Stock Exchange. After analyzing data by Minitab software, it was found that impact of managerial ownership factor on Q-Tobin ratio and capital structure is linear and square linear respectively. Results show that managerial ownership has weak positive effect on both response variables. Between control variables entered in the model, asset return and ownership concentration variables have positive impact on the Q- Tobin, while the control variable firm size has a negative impact on this response variable. Ownership concentration has a positive effect on the capital structure while the asset return and firm size have negative impact on this response variable.