Authors : Saeed Samimi and Seyyed Ali Paitakhti Oskuee
Abstract: Facilitating domestic and foreign investment and the expected stock returns of shareholders are issues that are typically important for all stakeholders of the company. The alignment of the interests of stakeholders and managers of companies can be achieved by reducing the problems of the agency. The decrease of these problems increases the shareholder’s interest in trading on the capital markets and results in the increase of stock liquidity and expected return of shareholders. This study aims to explore some of the corporate governance mechanisms on the stock returns of listed companies in Tehran Stock Exchange. The explored governance mechanisms of the study included non-executive members of the board of directors, the duality of responsibility of the managing director, ownership of institutional shareholders and audit quality. To this end, 93 companies were chosen through the systematic elimination from 2007-2014 which were analyzed using panel data regression analysis. The results of the study indicated that institutional ownership and auditor specialization in industry had an effect on the stock return. In addition, independence of the board of directors, managing director responsibilities and the size of audit institution had no effect on the stock return.
Saeed Samimi and Seyyed Ali Paitakhti Oskuee, 2016. Investigating the Effect of Corporate Sovereignty Mechanisms on the Stock Returns of Listed Companies of Tehran Stock Exchange. International Business Management, 10: 6638-6644.