Impact of Ownership and Capital Structures on the Performance of Listed Companies in Tehran Stock Exchange (TSE)

Shadi Parshad

Abstract


The purpose of present study is to investigate the impact of ownership and capital structures on the performance of listed companies in Tehran Stock Exchange (TSE). Thus, 153 companies were sampled out during the year 2004 till 2008. The research hypotheses were verified using multiple regression analysis. Tobin Q ratio and the Rate of return on assets (ROA) were used as indices of corporate performance. Company ownership structure through the mechanisms of institutional, block stock, and stock concentration as well as capital structure were investigated by the indices of the ratio of liability to equity and long-term liability to equity. In general, hypothesis test results showed that the mechanisms of the ownership structure and institutional stock had a significant positive correlation with Tobin Q ratio, and block stock had a significant positive correlation with the rate of return on assets. Also results showed that capital structure has a significant negative correlation with corporate performance.


Keywords


Ownership Structure; Capital Structure; Institutional Shareholders; Block Stock; Stock Concentration.

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