The Effect of Corporate Governance Components on Dividend and Financing Policies

Abstract

The Purpose of This Study is to Investigate the Impact of Characteristics of Corporate Governance on Financing and Dividends Policies. In Firms Listed in Tehran Stock Exchange. Methodology: to Measure the Characteristics of Corporate Governance, There Components of the Ratio of Non-executive Directors, Shareholder Ownership Concentration, and Board of Directors` Size Have Been used, Also in This Study, the Index of Quantifying the Policies of Financial and Dividends Ratio, Respectively to Test Nine Hypotheses of the Study .Data on 115 Firms Listed in Tehran Stock Exchange Have Been Analyzed as a Sample By pooled Data Analysis for time period 2007_1389. In Order Estimate Appropriate Models of hypothesis Testing in Pooled (Panel) Data, Chaw and Houseman tests Were Used. Results: RESUTS of the Study, on the Whole Indicate That Hypotheses One, two, and Six are Confirmed at%99 Confidence Level, and Also, hypotheses There, Seven, and Nine are Rejected. Conclusion: In Other Words, Non-Executive Directors Ratio, Shareholder Ownership Concentration, and Board of Directors Size Had a Significant Relationship With Dividend Policy. The Ratio of Non-Executive Directors and Shareholder Ownership Concentration Also Had a Significant Relationship With Financing Policy.