What is the impact of board structure dimensions on risk in tehran stock exchange market?

ABSTRACT: Following the study of interrelation between corporate governance and risk, this study has investigated the structure of board of directorate by variables such as size of board; composition of board; committee structure and outside agents. In this case, there was investigated the structure of board in 81 companies member of “Stock Exchange of Tehran” for years between 2006 and 2011. On the other side, variables such as financial and commercial risks by specific ratios were used for assessing the risk of companies. SPSS software was used for data analysis. By such analysis, it was determined that non-executive directors and auditing committee have negative effect on risk. The size of board and outside agents has also no effect on the corporates risk. According to studies, considerable spectrum of hypotheses test indicates the presence of interrelation between corporate governance and companies’ risk; i.e. corporate governance with its construct dimensions influences on the companies’ risk.

Corporate Governance, Risk, Board of Directorate, Board size, Board Composition, Outside Representation, Committee Structure.