Abstract:
The aim of this study was to investigate the relationship between corporate governance
characteristics and valuation of the firm's performance in Iran. After
designing performance evaluation indexes, information of transactions made
during the five-year study from 2011 to 2015 from the Stock Exchange were
collected and the sample consists of 129 companies was selected by systematic
elimination that was a total of 645 year-firm. In this study we used the linear
regression and correlation for testing the research hypotheses, and Eviews software
for analysing the data and testing hypotheses. What can be said in summary
and conclusion of research hypotheses test is that, there are a significant and positive
relationship between the intensity of supervision, the stock in the hands of the
board, executive's changes and board size with the company's performance; in
addition, we found a significant and negative relation between firm size and financial
leverage with the company's performance. The other results showed no
significant and positive relationship between the number of board meetings and
the firm's performance; the results in this study corresponded to the documentation
mentioned in the theoretical framework and financial literature.
Machine summary:
The other results showed no significant and positive relationship between the number of board meetings and the firm's performance; the results in this study corresponded to the documenta-tion mentioned in the theoretical framework and financial literature.
In this study, we highlight some of the corporate governance varia- bles and the focus will be given to the committee intensity of monitoring, board meetings, director- ships of the board members, ownership of the directors and board size, with firm size and leverage being as control variables.
3. 2 Models and Variables To investigate the hypothesis, model (1) is presented that in the following will be discussed: (View the image of this page) DOWNSHIP: is the percentage of stocks in the hands of the board from total stocks BM: the average number of board meetings during the year DSHIP: changes of managers BSIZE: board size F size: firm size Lev: financial leverage We represent a method for measuring the study variables in the following: (1) 3.
Table 6: The estimation of hypothesis model coefficients (View the image of this page) Table 6, the probability of t-statics ratio for variable of measuring index the intensity of supervision, manager changes, the percentage shares of the total shares in the hands of the board, board size, firm size and financial leverage is less than 5%;then mentioned relationship is statistically significant and the relationship between firm size and financial leverage with investment value in market is negative.