The Effect of CEO Tenure on Value Added Growth of Firm

Subject Areas : Management Accounting

Shahnaz Alinezhad ¹ (دانشجوی دوره کارشناسی ارشد حسابداری دانشگاه آزاد اسلامی واحد علوم و تحقیقات تهران)
Bahman Banimahd ² (استادیار و عضو هیات علمی گروه حسابداری دانشگاه آزاد اسلامی واحد کرج)
Fereidoon Ohadi ³ (استادیار و عضو هیات علمی گروه مهندسی صنایع دانشگاه آزاد اسلامی واحد کرج)

Received: 2014-11-09 Accepted : 2015-01-10 Published : 2015-06-22

Keywords: CEO Tenure, Value added Growth of Firm, stock exchange,

Abstract :

This paper investigates relationship between the CEO tenure and firm's value added growth in 94 listed firms on Tehran stock exchange in the period of 2007 to 2012. The research results show a significant and negative relationship between the CEO tenure and the value added growth. In other words, this study shows that by enhancing CEO tenure, the firm's value added growth decreases. Research evidence also confirm a significant and direct relationship between firm's value added growth with return on assets ratio , leverage ratio and sale growth. But, firm size and ownership percentage of major shareholder has no any relationship with value added growth.