The Effect of Firm Characteristics on Sustainability of Board Members and Independent Audit Opinion

This Study tries to provide significant evidences about the effects of the firm characteristics on corporate governance indices exchange. Thus 60 companies were selected during 2004-2008 period. Corporate Governance indices in this research included: 1-Board index، 2- Audit Opinion index. In order to evaluate Board and Audit Opinion indices variables of Adequacy (Sustainability) of Board Members and Independent Audit Opinion were used respectively. Moreover، variables of investment opportunities، growth opportunities، financial risk، firm size، institutional shareholder ratio were used to explain firm characteristics. Implementing a multivariate Logistic regression and linear regression patterns as (combined) panel data، an appropriate pattern for each corporate governance index was provided. Findings corroborate that the effects of investment opportunities، financial risk، growth opportunities and lag adequacy of board members on adequacy of board members (current) as board index are significant and also the effects of financial risk and growth opportunities and lag independent audit opinion on independent audit opinion (current) as audit index are significant.