The Relationship between Ownership Structure and Firms' Performance in Tehran Stock Exchange

Abdorreza Asadi, Mahdi Pahlevan

Abstract


Abstract: The purpose of present research is to investigate the ownership structure and the performance evaluation indices in listed companies of Tehran Stock Exchange. In this study, the relationship among research’s variable using multiple mean comparison tests and variance analysis (ANOVA) is investigated and the relationship between research’s variables together with the past data is analyzed. Surveyed companies include 102 listed companies in Tehran Stock Exchange over the five year period from 2007 to 2011. The results show that the main research hypothesis regarding the performance evaluation criteria has significant differences in different ownership structures, was confirmed. Research subsidiary hypothesis test also showed that Return On Asset (ROA), Return On Equity (ROE), Market to Book Value (MBV) and Market Value Added (MVA) has significant differences in the different ownership structures. Moreover the final hypothesis regarding the ownership structure of companies in various industries creates significant difference in performance evaluation indexes, was confirmed. The research provides useful information on the impact of ownership structure on criteria for evaluating the performance of listed companies on Tehran Stock Exchange.


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