Cultural Values and Corporate Governance Print

As corporate governance is improving through the time، public firms have to follow its mechanisms for surviving in competitive markets. Cultural values have become subject of many studies and many of them are investigating the determinants and consequences of corporate governance as well. In this paper the relationship between cultural values and some corporate governance indices has been studied. For this purpose we have chosen Hofsted’s Model among different cultural models and percentage of non-executive directors and institutional investors on the board as proxies for corporate governance mechanisms. Sampled firms have been tested for three years from 2007 to 2009. Results show a significant negative relationship between masculinity and percentage of non-executive directors on the board. Also، there is a significant positive relationship between individuality and the presence of institutional investors on the board and a significant negative relationship between uncertainty avoidance and the presence of institutional investors on the board.