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The Relationship between Corporate Governance, Capital Structure and Systematic Risk in those Firms Listed at Tehran’s Stock Exchange

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Author Affiliations

  • 1 Islamic Azad University, Science and Research branch, IRAN
  • 2 Shahid Bahonar University of Kerman, IRAN

Res. J. Recent Sci., Volume 3, Issue (12), Pages 67-74, December,2 (2014)

Abstract

The goal of this study is to analyze the relation between corporate governance versus capital structure and systematic risk in the companies, which are accepted in Tehran Stock Exchangeby April 2011. To do so, the data of 81 firms was collected and the findings from the testing the hypotheses showed that 13 hypotheses(meaningful relation between institutional ownership and the costs of companies' accumulated yield – institutional ownership and debt costs – managerial ownership and costs of ordinary shares - managerial ownership and costs of accumulated yield - managerial ownership and costs of debts - family ownership and costs of ordinary shares - family ownership and costs of debts – percentage of unsalaried members of directing board and costs of debts – sameness of board of directors' chief and managing director and costs of accumulated yield) out of 18 hypotheses rejected and 5 hypotheses were confirmed (ownership concentration and costs of accumulated yield - percentage of unsalaried members of directing board and costs of accumulated yield - percentage of unsalaried members of directing board and costs of ordinary shared - percentage of unsalaried members of directing board and costs of debts - sameness of board of directors' chief and managing director and costs of ordinary shared - sameness of board of directors' chief and managing director and costs of accumulated yield. Also 4 hypotheses out of 6 regarding the main hypothesis are rejected (institutional ownership and systematic risk – managerial ownership and systematic risk - percentage of unsalaried members of directing board and systematic risk - sameness of board of directors' chief and managing director and systematic risk) and 2 hypotheses were confirmed (family ownership and systematic risk – ownership concentration and systematic risk).

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