Mohamad Namazi; Fahimeh Ebrahimi
Volume 10, Issue 40 , January 2014, , Pages 1-26
Abstract
This study aims to investigate to the effect of board composition on performance of companies Tehran Stock Exchange listed with emphasis on efficiency of value added by a firm’s total resources and efficiency of value added by a firm’s physical capital and intellectual capital resources separately. ...
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This study aims to investigate to the effect of board composition on performance of companies Tehran Stock Exchange listed with emphasis on efficiency of value added by a firm’s total resources and efficiency of value added by a firm’s physical capital and intellectual capital resources separately. For this purpose, a sample consisting of 64 companies between 2001 and 2010 was selected. The results of testing hypotheses by applying the ordinary least square regression model statistically show that there is a weak positive and meaningful relationship between the variable of the presence of one of the non-executive members in the chairman position and the efficiency of value added by a firm’s total resources and efficiency of value added by a firm’s physical capital and intellectual capital resources. However, no meaningful relationship was found between variables of the percentage of non-executive directors on the board and presence of at least three non-executive members in the board composition and the efficiency of value added by a firm’s total resources and efficiency of value added by a firm’s physical capital and intellectual capital resources
M. Araab Mazar Yazdi; R. Taher Khani
Volume 8, Issue 29 , April 2010, , Pages 97-113
Abstract
As a functional and economical procedure, the change of firm ownership into generalization, leads to a growth in firm fund and as a result, an Expansion in its commercial operation. The need for great funds in commercial units and the formation of corporation as a result, leaded to separation of ownership ...
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As a functional and economical procedure, the change of firm ownership into generalization, leads to a growth in firm fund and as a result, an Expansion in its commercial operation. The need for great funds in commercial units and the formation of corporation as a result, leaded to separation of ownership from manager firms, and so to a conflict among the managers and the owners. In recent years, corporate governance-including a network of connections among stockholders, managers, accountants, and other beneficiaries- has been posed as a decreasing factor of the great discrepancy among stockholders and also the segregation of ownership from commercial unit control. One of the most important factors which contribute to the control of management relationship is the board of director and its composition. As a result, it is of crucial importance to survey factors related to board composition and its effect on the firm operation.
The locative domain of this survey is the collection of listed Companies in Tehran Stock Exchange and its temporal domain lies between year1382 till 1386. On the basis of this, the chosen samples include 130 firms.
Considered questions in this research have been posed as six hypotheses. The result of hypothesis testing shows that corporate governance variables including the number of members of board, the number of its non-executive members and the number of major shareholders have no effect on the return on equity (ROE), but on the other hand, this variables affect Tobin’s. The results show that the number of board members has a negative and at the same time negligible effect on Tobin’s, but the nonexecutive members of board and the number of majority shareholders have positive and also insignificant effect on Tobin’s.
