The Relationship between Corporate Governance and Economic Value Added in The Iranian Manufacturing Enterprises (Listed in Tehran Stock Exchange)

The purpose of this study is to investigate the relationship between corporate governance (CG) and economic value added (EVA). EVA is one of performance evaluation measures. Unlike traditional performance evaluation measures، EVA determines the value creation. 116 manufacturing enterprises are studied during a seven years period (2007 to 2013). Simple and multiple linear regression analysis are used to test hypotheses. Institutional Ownership (Inst-own)، Ownership concentration (Owncon)، Board independence (Brdind)، Board compensation (Bonus) and Internal audit (Inaudit)، as CG indicators، firm size and company age، as moderator variables، and EVA، as dependent variable، are used. The results indicated significant and direct relationship between Inaudit and Bonus with EVA. But، Owncon and the Brdind have not significant relationship with EVA. Also، small relationship is established between Inst-own and EVA. Findings indicated that company age has no impact on relationship between Inaudit، Brdind and Owncon with EVA. However، it has significant direct impact on relationship between Bonus and Inst-own with EVA. Also، company size has significant adversely impact on relationship between Brdind and Owncon with EVA.