CORPORATE GOVERNANCE AND THE COST OF DEBT FINANCING (BORROWING) AT LISTED COMPANIES IN TEHRAN STOCK EXCHANGE

Abstract

The main purpose of this study is the relationship between corporate governance and borrowing cost of listed companies in Tehran Stock Exchange. To study this main purpose, we developed four sub-goal for this research. The population of this study are the companies that accepted at Tehran stock exchange since 2008, we have selected 76 companies as sample. The sampling method of this study is probability - simple random sampling. In order to analyze the data resulted from collected from Institutional ownership (x1), Ownership concentration (x2), Nonbound executives (x3) and CEO duality tasks (x4) are used. Deductive and descriptive statistical methods. The results Durbin Watson Test shows the test distribution is Normal. So we can use Multi Regression to test the hypothesis of the research. Findings show the ownership concentration, percentage of institutional ownership, percentage of non-bound executives and CEO duality tasks variables have an impact on the cost of debt financing (borrowing) at listed companies in Tehran Stock Exchange. There is a significant relationship between corporate governance and the cost of debt financing (borrowing) at listed companies in Tehran Stock Exchange