Pages: 61-72

Abstract

The present research examines the relationship between corporate governance and financial decision making in companies listed on Tehran Stock Exchange. For this purpose, there have been used indicators of audit committee, activities of the board of directors, number of non-executive members of the board of directors, size of the board of directors, institutional ownership and number of major shareholders for corporate governance; there have also been used ratio of debt and payable dividends to assess financial decision making. The research hypotheses were tested using a sample containing of 95 firms listed in Tehran Stock Exchange from 2010 to 2014 as well as using multivariate regression model. The research results showed no significant relationship between corporate governance and debt. In addition, the results show no significant relationship between corporate governance and payable dividend.