Saber Sheri Anaghir Sheri Anaghir; Yahya Hassas Yeganeh; Mehdi Sadidy; Benyamin Narrei
Volume 13, Issue 52 , January 2017, , Pages 9-36
Abstract
Previous researches revealed that corporate governance mechanisms assists the investors in motivating and compelling pillars of company management to more efficient use of corporate resources with doing stewardship duty. Managers can play a critical role in using the resources through making appropriate ...
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Previous researches revealed that corporate governance mechanisms assists the investors in motivating and compelling pillars of company management to more efficient use of corporate resources with doing stewardship duty. Managers can play a critical role in using the resources through making appropriate decisions about optimal investment. Inefficient investment could be the result of poor corporate governance. In other words, corporate governance is a key and monitoring tool in investment efficiency. The purpose of this study is to analyze the relationship between corporate governance and investment efficiency in the firms listed in the Tehran Stock Exchange. For testing hypotheses multivariate linear regression model using estimated generalized least squares method (EGLS) was used. To reach the purpose of the study, a sample of 138 companies were selected by screening (systematic deleting) in the years 2008 to 2014. Based on 93 indicators of hassass yegane and Salimi (2011), we estimated the efficiency of corporate governance and its dimensions such as transparency, effectiveness of board, shareholder rights and the effects of ownership. We also measured the efficiency of investment according to the Richardson’s (2006) model. In general, the results show that corporate governance and its dimensions have a significant positive effect on the efficiency of investment. In addition, a significant and positive impact of variables control such as investment opportunities (Tobin's Q) and firm size on investment efficiency was confirmed. The cash flow had a negative and significant relationship on investment efficiency
Binyamin narrei; saber sheri; yahya Hasas-yeganeh; mehdi Sadidy
Abstract
It is believed that corporate governance mechanisms help to investors in motivating and compelling pillars of company management to the more efficient use of resources in line serve their stewardship duty. Pillars of management with optimal decisions about the investment, plays a vital role in the use ...
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It is believed that corporate governance mechanisms help to investors in motivating and compelling pillars of company management to the more efficient use of resources in line serve their stewardship duty. Pillars of management with optimal decisions about the investment, plays a vital role in the use of resources. Inefficient policies in the investment could be the result of poor corporate governance. In other words, corporate governance is key and control-monitoring factor in the efficient management and investment efficiency. The purpose of this study is to analyze the relationship between corporate governance and investment efficiency in the firms listed in the Tehran Stock Exchange. For test hypotheses multivariate linear regression model using estimated generalized least squares method was used. For the purposes of this study, a sample of 138 companies by screening , in the years 2008 to 2014 were selected. Evaluation of corporate governance and its dimensions (transparency, effectiveness of board, shareholder rights and the effects of ownership) on the basis of a variety of indicators (93 indicators) based on the ratings provided by the Hsasyeganh-Salimi (2011) and measure the efficiency of investment according to the Richardson model (2006) took place. In general, the results show that corporate governance and its dimensions have a significant positive effect on the efficiency of investment.
