The effect components of corporate governance on the profitability of listed companies in the Tehran Stock Exchange

Subject Areas : Corporate governance

mohmmad sayrani ¹ (Assistant professor of department of accounting, Shahab Danesh university, Qom, Iran)
fatemeh qasemnejad ² (Graduate Student ,Department of Accounting, Shahab Danesh university, Qom, Iran)

Received: 2022-09-18 Accepted : 2023-01-27 Published : 2022-09-23

Keywords: profitability, Stakeholders, G34, Key Words: Corporate governance, Stock exchange JEL classification: G30,

Abstract :

AbstractCorporate governance has two dimensions of operational dimension and supervisory dimension in any company, both of which can affect the company's performance. The purpose of this research was to investigate the effect of corporate governance components on the profitability of companies listed on the Tehran Stock Exchange. The research period was 10 years from 2010 to 2019. Therefore, by selecting 151 companies as the research sample, the research question regarding the effect of the corporate governance components was examined by estimating the multivariable regression model and using the combined data model. The results showed that among the examined components, independence of audit committee, independence of board of directors, expertise of audit committee, gender diversity of board of directors, tenure of the CEO, expertise and competence of the internal audit unit and type of auditor had a positive effect on the profitability of the company. The duality of management duties in the board of directors had a negative effect on the profitability of the company. Also, the shares owned by institutional investors and the number of meetings of board of directors and the size of the internal audit unit did not have any effect on the profitability of the company.

References:

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