The Study of Corporate Governance Structure Effects on the value (P/E) of listed Companies in the Iranʹʹs Stock Exchange

ABSTRACT: Corporate governance is a set of rules, law and structure, which help manager for reaching to firm objective. There is relationship between corporate governance mechanism and performance of company. But prior research is shown different result. So this article wants to retest this relation in an emerging market like IRAN. In order research, we gather financial data of 140 companies during 2007-2011 periods and with panel data analyses method test our hypotheses. The finding shows a direct relationship between insider ownership and independence manager ratio and performance of company. And there is negative relationship between institution stockholders with performance of company and finally there isn’t any relationship between duality and performance. This finding is very useful for decision maker of Iranian stock exchange for fulfillment of corporate governance rules in Iranian companies.