The relationship between some corporate regulatory governance tools and economic and financial criteria used for performance evaluation

Ali Taheri, Foad Movahedi

Abstract


There are different methods and criteria for evaluating corporate performance. In this study we try to investigate the relationship between corporate regulatory governance tools and economic and financial criteria used for performance evaluation of companies accepted in TSE. A sample of 3 companies were selected whose information for a research period of five years (2010-2014) was accessible. Given the previous research, a number of performance evaluation criteria were used in the present study as independent variables, including the rate of return on assets and Tobin Q as economic measures of performance evaluation. Then, the data related to independent variables including two criteria from corporate regulatory governance tools (i.e. the percentage of non-bound members of the board of directors and the number of institutional investors) were examined through the study. In order to test the hypotheses, multivariate regression techniques were used. Regression test using the combined data was used in this study. Statistical tests were performed by two multivariate models (i.e. a model used for each performance evaluation criterion). The results of the study indicated that corporate regulatory governance tools are significantly correlated with all performance evaluation criteria. 


Keywords


corporate governance system, Tobin Q,rate of return on assets.

Full Text:

PDF

Refbacks

  • There are currently no refbacks.