The Relationship between Corporate Governance and Company's Growths with Emphasis on the Role of Financial Constraints

The purpose of this research is to study the relationship between corporate governance and company's growth with an emphasis on the role of financial constraints among the companies listed in the Tehran Stock Exchange. In this study, using a sample of 121 listed companies in Tehran Stock Exchange between the years 2010 to 2015 which contains 726 observations, hypotheses were exmained. To measure corporate governance 2 indices (Concentration of ownership and the percentage of institutional ownership), to measure company's growth 3 indices (Asset growth, sales growth, profit growth), and to measure the financial constraints Kaplan and Zynglas model which has modified by Raiee and Hesarzadeh (2009) according to Iran's environment have been used. The results showed that there is a positive significant relationship between institutional ownership and ownership concentration with company's growth and financial constraints has no effect on the relationship between corporate governance and firm's growth.