EFFECT OF CORPORATE GOVERNANCE ON FIRM RETURN AND VALUE: EVIDENCE FROM IRAN STOCK MARKET

This research examines the relationship between corporate governance and firm return and value, which are two measures of firm performance. Absolutely, there are several measures for investigation the corporate governance but we picked up the ownership structure as measure of it. In general, this paper tries to investigate the kind of ownership mix and ownership concentration and its effect on firm return and value in Iran Stock Market. Analysis has been made as evidence taking sample of listed non-financing firms from the Tehran Stock Exchange (TSE). Our sample consists of non-financial corporation’s listed on Tehran stock exchange between 2007 and 2009. Our empirical results provide evidence that ownership structure do not have significant effect on the firm performance. There is a significant relationship between governmental ownership and firm's return. In addition, ownership concentration has a negative and significant relationship with firm's value.

corporate governance, ownership structure, firm return, firm value and TSE.