Investigation on the Impact of Ownership Structure on the Relationship between board of director's compensation and firms Performance listed in Tehran Stock Exchange

As an employer appoints an agent on his own behalf and delegates decision making authority to him, there an agency function results in. In an agency relation, either side is after to maximize his benefit. There are different approaches in terms of how conflicts in an agency relation should be treated and dealt with. However the optimal solution to this seems to be to make the bonuses the executives are granted, consonant with their efforts and pay. The present study strived to find evidence for the effect ownership concentration on the relationship between the board of directors’ compensation and the company’s performance on different types of ownerships in Tehran stock exchange. In this study 53 companies for period of 6 years from 1386 to 1391 were examined. This was a descriptive study and statistical procedures such as multivariate regression were used for panel data analysis. However the concentration of ownership has a negative significant effect on the relationship between the board of directors’ compensation and the state company’s accounting division performance. However in corporate type of ownership, the concentration of ownership has a positive significant effect on the relationship between the board of directors’ compensation and the RET. whereas in directorship type of ownership no such relation was observed.