Mahmoud Moein Addin - Assistant Professor of Accounting, Islamic Azad University of Yazd, Yazd, Iran
Hasan Dehghan Dehanavi - Assistant Professor of Accounting, Islamic Azad University of Yazd, Yazd, Iran
Alireza Kazemi - Master of Accounting, Islamic Azad University of Yazd, Yazd, Iran
Mojtaba Ebrahimi Romanjan - Master of Accounting, Birjand, Southern Khorasan, Iran

The present study aims to examine the impact of corporate governance mechanisms on the performance of the firms listed on the Tehran Stock Exchange by using structural equation modeling approach. The mechanisms include the ownership percentage of the board of directors, the ownership percentage of intentional investors, the presence of non executive chiefs on board of directors, CEO duality, board size, the presence of internal auditor, the presence of independent auditing and firm value. Using the economic proxies including refined economic value added (REVA) and market value added (MVA), the performance has been evaluated. This study applies a sample composed of fifty listed firms on the Tehran Stock Exchange during a period covering the years from 2003 to 2009. The research hypotheses are tested by using structural equation modeling. The findings reveal that: 1-Corporate governance impacts refined value added. 2-Corporate governance impacts market value added. The findings demonstrate that refined value added is a stronger measure for evaluating the firms’ performance. Additionally, the percentage of the board of directors is a more significant measure in comparison with the other corporate governance mechanisms.

Corporate Governance, Refined Value Added, Market Value Added, Institutional Shareholders, Non Executive Chiefs of the Board, Board Size