The Impact of Corporate Governance Mechanism on Financial Performance and Information Transparency

The purpose of this study is to investigate the impact of corporate governance mechanism on financial performance and information transparency of listed companies in Tehran Stock Exchange during the period 1384-1390. In this regard, 67companies were selected for a period of 7 years. In this research, ownership concentration, Institutional ownership, board independence, board size, CEO duality and CEO tenure have been studied as corporate governance mechanism. Firms performance is measured by using two measures: return on assets and return on capital markets. Also, information transparency is reviewed through earnings management behavior and using of Kaznyk model based on absolute value of abnormal accruals. The statistical method used to test the research hypotheses is multiple regression using of pooled generalized least squares. Research findings show a significant positive relationship between ownership concentration, Institutional ownership, board independence and CEO Tenure with performance based on ROA and return on capital markets. Also there is a significant negative relationship between board size and CEO duality with performance based on ROA and return on capital markets. Furthermore, there is a significant positive relationship between ownership concentration, Institutional ownership, board independence and CEO tenure with information transparency. Also there is a significant negative relationship between board size and CEO duality with information transparency of listed companies in Tehran Stock Exchange.