Study of the Relationship between Corporate Governance and Financial Performance of the Companies Listed in Tehran Stock Exchange Market

Abstract

In this research, relationship between corporate governance and financial performance is investigated. Data from 110 companies listed in Tehran stock exchange market from 2007 to 2013 has been used in analysis. Testing the hypotheses was carried out through linear regression. Results revealed that managerial ownership has a negative and significant relationship with financial performance while institutional ownership has a positive relationship with financial performance. Major shareholders have negative relationship with financial performance. Moreover, there is a negative and significant correlation between duality of CEO’s tasks and firms ’ financial performance