Document Type : Research Paper
Authors
Abstract
Globalization, through linking companies to international markets and increasing competitive space, has necessitated the restructuring of companies. Combination of companies, ownership and development of target markets are among the efforts made by companies in order to continue their economic lives. These companies are also forced to utilize domestic and international capital markets to obtain their financial resources. In this regard, corporate governance is a criterion which plays a fundamental part in decision making process of investors and leasers.
In order to investigate the role of institutional stock holders and percentage of non-Executive managers as some criteria of corporate governance on firm value, the 4-year data of 97 firms were studied. The findings of this study show that there is a significant relationship among institutional stockholders and company value, as well as presence of non-Executive managers and company value. The findings of this study, in line with similar researches, support the view that presence of institutional stockholders in the board of directors of companies increases company value.
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