Optimizing the Firms Performance through Corporate Governance Mechanism by Super Creative Algorithm

Subject Areas : مدیریت

Farzin Rezaei ¹ (دانشیار، دانشگاه آزاد اسلامی، واحد قزوین، گروه حسابداری، قزوین، ایران)
Mojtaba Sobhani ² (کارشناسی ارشد، دانشگاه آزاد اسلامی، واحد قزوین، گروه حسابداری، قزوین، ایران (عهده‌دار مکاتبات))

Received: 2015-02-01 Accepted : 2015-07-12 Published : 2015-11-22

Keywords: Corporate Governance, Super Creative Algorithm, Optimizing, Firms,

Abstract :

A good corporate governance system is a key element in optimizing business unit performance and the profitability condition for shareholders, limiting agency costs and supporting the company's survival. This study aimed to express the difference between the values of the optimal performance of companies operating in various industries in Tehran Stock Exchange through governance mechanisms. In this regard, the performances of 130 companies in Tehran Stock Exchange were optimized, categorized by 10 industries during years of 1380 through 1390 (2001 through 2011), using meta-heuristic algorithm based on the following criteria: Return on Assets, Return on Equity, Real Stock Returns, Tobin’s Q Ratio, Market Value of Equity, Economic Value Added, and Cost of Common Stock; And We compared optimal performance of companies with each other and also compared corporate governance mechanism of them together and finally we compared both of them (optimal performance and corporate governance mechanism) together by Kruskal-Wallis test. Consequently, using good corporate governance lead to optimal performance of the companies. So we propose this result to investors and active companies of stock exchange.