Relationship between the Internal and External criteria of evaluation and the reward of board of directors in listed companies of Tehran Stock Exchange

Abstract

This research aims to investigate the relationship between the internal and external criteria of evaluation and the bonus of board of directors in listed companies of Tehran Stock Exchange. In this regard, all of the listed companies in Tehran Stock Exchange which presented the financial statements (balance sheet, loss and gain bill) and the required information between 2007 and 2012 were investigated. Totally, 96 companies of different industries were selected to test the hypotheses, regression analysis and pane data were used. To test the significance of model and significance of coefficients, F and t statistics were used, respectively; also to test the correlation of model, Durbin - Watson was used. The results showed that there is a significant relationship between the amount of sales and stock return and reward of board of directors in Tehran Stock Exchange but there is no significant relationship between the opportunities of investment and reward of board of directors.