Survey the Effect of Governmental Affiliation on Firm's Value

This study evaluate the relationship between Governmental Affiliation and firms value. In this study, data have been gathered from 73 accepted companies in Tehran stock exchange from 2005 to2014 and the research hypothesis have been examined by utilizing the regression coefficient analysis . The results showed that there is a direct and significant correlation between Governmental Affiliation and Firm`s value. In other words, we can say that the state-owned companies that are independent of government influence on supply and demand. According to Levine (2005), governmental managers effect in firm`s risk by political decorum and Subsequently, the Firm`s value also affected. Therefore, Governmental Affiliation can be used as a significant variable in firm`s value.