The Relationship between Corporate Governance Mechanisms and Firm Performance after Initial Public Offerings: Evidence from Companies Listed in Tehran Stock Exchange (TSE)

اقتصاد پولی مالی

Article 1, Volume 19, Issue 4, January 2013   

Document Type: پژوهشی

DOI: 10.22067/pm.v19i4.29311

Authors

mehdi moradi^* ; amin Rostami

Abstract

In this study, the relationship between the some of corporate governance mechanisms and corporate financial performance after Initial Public Offerings (IPOs) in Tehran Stock Exchange (TSE), based on data from 70 companies during the years 1381–1387 (2003–2009) are examined. Corporate governance mechanisms includes Ownership structure (i.e., Institutional ownership, Managerial ownership), and Board composition (i.e., the percentage of Non executive director or Board independence, and CEO duality) in order to evaluation of the, return on asset and Tobin’s Q is used. Statistical method used to test hypotheses is panel data approach.
Findings show that institutional ownership and managerial ownership are positively related with firm performance after going public. Moreover, the percentage of non executive director improves firm performance. However, there is no relationship between CEO duality and firm performance.

Keywords

Ownership Structure; Board Composition; Firm Performance; Initial Public Offering; Tehran Stock Exchange; Panel Data