Political management and share price of the companies listed on Tehran Stock Exchange: Test of Political Economy Theory

In the context of political economy, this study investigates relationship between political management and share price in 95 listed firms of Tehran Stock Exchange (TSE) during a seven-year period from 2006 to 2012.Using correlation method and multiple regression technique, We categorize companies in two groups as a theoretical view. First, companies which have directed by political management and second companies which have not political management. The results of this study indicates that there is a negative relation between political management and firms share price. Our result confirms political economic theory.