Investigating the effect of board performance on the long-term success of companies listed on the Tehran Stock Exchange

In order to invest, business units need to invest in projects with a net positive present value due to resource constraints and resource efficiency. In fact, over-investing indicates inefficiency of investment and occurs due to conflicts of interest between managers and investors. Therefore, the purpose of this study is to investigate the effect of board performance on the long-term success of companies listed on the Tehran Stock Exchange during the years 1393 to 1397 with a sample of 225 companies. Multivariate linear regression and hybrid data using the generalized least squares model have been used to test the hypothesis. The results of the hypothesis test showed that the efficiency of the board of directors has a significant effect on the long-term success of companies listed on the Tehran Stock Exchange. We find strong evidence that board dynamics are positively correlated with corporate investment efficiency. These findings support the view that enterprise resources and internal processes that enable billboards to gather these resources to perform complex tasks are critical to a company's long-term success. As a result, the board is able to make decisions that lead to the efficiency of the company's investment.