Accounting and Auditing Studies

Accounting and Auditing Studies

The effect of corporate governance variables on capital structure of listed firms in Tehran Stock Exchange (automotive & components industry)

Document Type : Original Article

Authors
Ahmad Ahmadpour 1
Ahmad Jafari Samimi 2
Hamze Golmohammadi 3
1 Department of Accounting, University of Mazandaran, Babolsar,Iran
2 Faculty of Economics, University of Mazandaran, Babolsar, Iran
3 Master of Business Administration, Department of Management, Mazandaran University of Science and Technology, Iran
10.22034/iaas.2012.105365
Abstract
The major aim of this paper is to investigate the relation between corporate governance factors and capital structure of listed firm in Tehran Stock Exchange. To do so, 30 firms in Automotive and Components industry were selected from those which were allowed in Tehran stock exchange during the 1384 – 1389. The ‘Ownership Concentration’, ‘Board Independence’, ‘Institutional share ratio’, ‘CEO duality’ and ‘Internal Auditor’ were considered as independent variables whereas, ‘debt ratio’ (as a criterion for capital structure) as  dependent variable. The results indicate a positive relationship between ‘Internal Auditor’ and capital structure. There is a negative relationship between ‘Ownership Concentration’, ‘Institutional share ratio’, ‘CEO duality’ and capital structure. In addition, no significant relationship was found between ‘Board Independence’ and ‘capital structure’.
Accounting and Auditing Studies
Volume 1, Issue 1
Spring 2020
Pages 52-63