Authors : Ghader Babaei, Rasoul Baradaran Hassanzadeh and Morteza Khanlari
Abstract: This study aims to examine the relationship between corporate governance mechanisms on two variables based on value, Created Shareholder Value (CSV) and Economic Value Added (EVA) of Iranian listed companies. Based on a sample of Iranian firms were selected using matched-sampling method during the years 2006-2014 and multiple liner regression was employed to test the relationship between among corporate governance mechanism with CSV and EVA. Corporate governance factors have a strong predicting power on company performance, mainly due to debt monitoring and Foreign ownership. However, the CSV has a positive relationship with institutional shareholder, ownership structure audit institution. It also has a negative relationship with the governmental ownership. The results showed that the EVA just has a positive relationship with audit institution. The results are very relevant to academicians and practitioners concerned with performance measurement. They basically underline the importance of including governance characteristics in any evaluation formula.
Ghader Babaei, Rasoul Baradaran Hassanzadeh and Morteza Khanlari, 2016. A Survey of the Relationship Between Corporate Governance and Corporate Created Value: Evidence from Iran. International Business Management, 10: 1051-1057.