Effects Corporate Governance on Firm Performance
Subject Areas : Financial Knowledge of Securities Analysis
Keywords: Corporate Governance, institutional share holders, Non-executive direction, Quality of financial informati,
Abstract :
The main goal of doing this research is to analyze the relationship between the corporate Governance mechanisms and firm performance . The criterias of corporate Governance in this approach contains: institutional share holders , majority share holders, non-executive direction ratio and quality of financial information two criteria for evaluation of performance are: Tobins Q , Net profit growth (NPT) In this research a sample of 94 firms in a 5 year financial period from 1383 to 1387 has been analyzed considering the same condition for all sample firms from Tehran stock exchange , using statistical method panel analysis . The results concluded from this approach indicates that : Presence of institutional share holders in the ownership structure of a firm has a direct and positive effect on the performance.Presence of majority share holders in the ownership structure of a firm has no effect on the performance .Ratio of presence of non-executive direction ratio in the board of directors member ship has a negative and reverse effect on the performance .Quality of financial information has no relation with a firm performance .