Effect of Good Governance on Competitiveness in Tehran Stock Exchange

Document Type : Research Paper

Authors

1 MA in Accounting, Member of young researchers and elites club of Sirjan

2 PhD Candidate in Accounting, Alborz Campus, University of Tehran

3 Professor of Economics, Shahid Bahonar University

Abstract

Good governance is a new model for sustainable human development, with the interactive mechanism of the three sectors of government, the private sector, and civil society, so that countries can use all their capabilities in comprehensive development. Also, the economic performance of countries over time depends to a large extent on their political, institutional and legal environment. These institutions and policies characterize the quality of governance among countries. The purpose of this study was to measure the effect of good governance on competitiveness in Tehran Stock Exchange. The research sample consists of 11 companies listed in Tehran Stock Exchange during the period of 2012-2017.
In this research, Levine-Lean and Chu tests and Kao's test to examine the coherent and long-run relationship between variables are used to conduct variables testing. Based on the results, the company's stock returns, governance index, real rate and total capital are mana, while the gross domestic product and exchange rate have a single root. Also, the results of the Cao test confirm the coherent relationship between the model variables. Therefore, there is a long-term equilibrium relationship between corporate corruption and independent variables. After analyzing the static and coherent relationship between the research variables, using the combined data and multiple regression analysis with E-Views software and the panel data technique, we examined the research hypothesis.
The results of the research show that good governance can have a positive and significant impact on competitiveness,

Keywords

References

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Iranian Economic Development Analyses
Volume 7, Issue 2 - Serial Number 20
November 2019
Pages 177-199

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