Document Type: Original Article

Author

Assistant Professor, Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Abstract

This research is the investigation of the effect corporate governance mechanisms on agency costs and excess cash of listed firms in Tehran Stock Exchange (TSE). The investigation of this research performed from measures ownership of concentration, chief executive officer dominance, board size, independence board and corporate audit as the governance mechanisms, and Doukas and Macknight models as measures for calculating agency costs and excess cash from Oler and Picconi model for 102 firm of the time period 2007 to 2011 of listed firms in Tehran Stock Exchange (TSE).The hypothesis tests based on multivariate linear regression using the combined data. The findings this research show that of t the aforementioned measures, the have positive influence of ownership of concentration and board size on agency costs, and the have negative influence of chief executive officer dominance and independence board on agency costs. Also the have positive influence of ownership of concentration, board size and independence board on excess cash, and the have negative influence of chief executive officer dominance on excess cash and non of corporate audit have influence on agency costs and excess cash in this research.

Keywords

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