The relationship between corporate governance mechanisms and accounting measures of performance of the accepted companies in Tehran stock exchange

Abstract

Relationship between corporate governance and company performance is an important topic in Accounting. Performance of an economic company depends on different factors. One of them is corporate governance which has a greet effect on performance. Our purpose is to study the relationship between corporate governance and accounting measures of performance of the accepted companies in Tehran stock exchange. In our study corporate governance is an independent variable and accounting measure of performance is a dependant variable. Considering limited samples, 109 companies accepted in Tehran Stock Exchange have been reviewed since 2006 to 2010 accounting to the ranking of the data. To test the hypothesis we have used the Spearman correlation coefficient for measurement of the impact of controlled variables on the relationship of independent chi-square test. Findings show that there is no meaningful relationship between percentage of independent directors of board and company performance while company performance has a meaningful relationship with institutional investors.