THE RELATIONSHIP BETWEEN STOCK RETURNS AND OWNERSHIP STRUCTURE OF THE VENTURE CAPITAL INVESTMENT

Abstract

Importance of investment for economical and social growth is as much as introduce as strong leverages in order to achieve development. However, it should be noted that amount of attention to this in positive process can lead to boom of economy and lack of attention to this process leads to economic crisis and negative process. Therefore, it must be said that economic growth and increase public welfare in long-term without attention to investment and essential available factors in investment environment is not possible. Investment as one making decision always has two components of risk and return and exchange of these compounds in various investment offers. Thus, investors try to maximize earnings by its investments. On the other hand, they are facing with
uncertainty condition and recent factor leads earnings’ investment to uncertainty. In other words, all of making decisions are happened based on relationship between risk and return. Hypotheses of the research are as following: 1. significant relationship exists between risk of investment and stock return. 2. Significant relationship exists between structure ownership and risk of investment.
Shareholders or structural ownership is one of important factor of corporate governance and affect motivation of shareholders. Thus, corporate governance has essential effect on efficiency of each company. Previously, economists assumed that all of related groups act as common objective. However, in three decades, Many of the conflicts of interest between groups and how facing with this
conflict by economists. These factors are expressed as agency theory. The main question of the research is stock return and ownership structure on risk of investment. Therefore, in order to answer this question, we used 284 samples of companies during 2007-2011 in Tehran Stock Exchange. We used multiple regression in order to test hypotheses. Results indicated that there was not significant
relationship exists between ownership structure and risk of investment