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The Effect Of Corporate Governance On The Financial Performance Of Companies Listed On The Tehran Stock Exchange

Author

Listed:
  • Seyyed Amir Mousavi MADANI

    (Semnan Azad University, Iran)

Abstract

The present study investigated the effect of corporate governance on the financial performance of companies listed on the Tehran Stock Exchange. In this study, the duality of CEO duties and financial performance were considered as corporate governance mechanisms. Indicators like return on assets, return on equity and net operating profit after tax have been used to measure financial performance. The studied period was 2013 to 2017 and samples were member companies of Tehran Stock Exchange. The findings revealed that corporate governance and financial performance of companies listed on the Tehran Stock Exchange had a favorable significant association. With the ROE index, there was a significant positive association between board accountability and corporate performance. With the TQ index, there was a positive significant association between board accountability and company performance, and with the ROE index, there was a positive significant relationship between transparency level and firm performance. There was also a substantial positive link between the amount of transparency and business performance as measured by the TQ index, as well as a significant positive relationship between the audit committee and company success as measured by the ROE index.

Suggested Citation

  • Seyyed Amir Mousavi MADANI, 2022. "The Effect Of Corporate Governance On The Financial Performance Of Companies Listed On The Tehran Stock Exchange," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 101-118, May.
    • Handle: RePEc:aio:manmar:v:xx:y:2022:i:1:p:101-118
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    References listed on IDEAS

    as
    1. Morck, Randall & Schleifer, Andrei & Vishny, Robert W., 2008. "Management ownership and market valuation: an empirical analysis," RAE - Revista de Administração de Empresas, FGV-EAESP Escola de Administração de Empresas de São Paulo (Brazil), vol. 48(2), April.
    2. Morck, Randall & Shleifer, Andrei & Vishny, Robert W., 1988. "Management ownership and market valuation," Scholarly Articles 29407535, Harvard University Department of Economics.
    3. Benjamin E. Hermalin & Michael S. Weisbach, 2003. "Boards of directors as an endogenously determined institution: a survey of the economic literature," Economic Policy Review, Federal Reserve Bank of New York, vol. 9(Apr), pages 7-26.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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