Corporate Governance and Holding Companies and Subsidiaries Performance in Tehran Stock Exchange

The conflict of interest between firm's stockholders and managers is a noteworthy concern in corporate finance discussions todays. The purpose of the present research is to investigate the effect of corporate governance criteria on performance of holding companies and subsidiaries in Tehran Stock Exchange. The study can be categorized as applied research regarding objective and descriptive and correlation research concerning research method. The study considers corporate governance criteria and market value added as research variables. Research sample contains holding companies and their subsidiaries in Tehran Stock Exchange which are selected via some criteria, including 27 holding companies and 89 subsidiaries over 2008 to 2015. For testing the research hypotheses, panel data analysis and multiple regression models are employed. The results indicate that board composition and ownership structure of holding companies significantly affect companie's performance. Moreover, holding companies performance has a significant effect on subsidiaries performance.