The impact of corporate governance mechanisms on the Investor's Reaction

This study examines the impact of corporate governance mechanisms on the reaction of investors.In this study the mechanisms of corporate governance as the independent variable and And response investors has been considered as the dependent variable. And measure response investors is also shareholder returns. In this study the mechanisms of corporate governance, institutional ownership, ownership concentration, ownership structure and board independence were evaluated. Territory where research includes companies listed on Tehran Stock Exchange and the period from the beginning of the year 2007 till 2014 is that due to limitations in total, 176 companies were selected. Research hypotheses using pooled least squares regression showed that none of the corporate governance mechanisms studied in this research (institutional ownership, ownership concentration, ownership structure and independence of the board of directors) have no effect on the response investors . So all four of our research hypothesis that corporate governance mechanisms affect on the response investors be rejected.