Does Ownership Structure Affect Corporate Value? Evidence from Iran

Abstract

In this study, the ownership structure is classified into four classes: the institutional ownership, the corporate ownership, the management ownership and the foreign ownership, and different attitudes regarding the above ownership have also been tested, that is, active monitoring hypothesis and interest convergence hypothesis. Since, in the sample research no information was found about foreign ownership, this type of ownership was not examined. But, in the case of other ownership, a separated hypothesis was developed based on different approaches and their influence on the corporate value was examined. For each hypothesis, a multiple linear regression model was defined based on the dependent variables. Companies listed in securities exchange commission of Iran makes up the statistical community of present study and the sample included 120 companies during 2008-2013. Correlation test and cross multiple regression test were used to examine the hypothesis. The results indicated no significant relationship between the concentration of ownership and the corporate value. Also, there is no relationship between the institutional ownership and management ownership and the corporate value. However, there is a significant relationship between the corporate ownership and the corporate value.