Survey the Effect of Governmental Affiliation on Firm`s Value

Document Type : Original Article

Authors

1 Assistant Prof., Faculty of Economic and social Sciences, Bu Ali Sina University, Hamedan, Iran

2 PhD student accounting,economic and management faculty,tarbyat modarse university,Tehran,Iran

3 PhD Student of Accounting Ferdosi University, Mashhad, Iran

4 Departman of Accounting, Technical and Vocational University (TVU), Ilam, Iran

Abstract

This study evaluate the relationship between Governmental Affiliation and firms value. In this study, data have been gathered from 73 accepted companies in Tehran stock exchange from 2005 to2014 and the research hypothesis have been examined by utilizing the regression coefficient analysis . The results showed that there is a direct and significant correlation between Governmental Affiliation andFirm`s value. In other words, we can say that the state-owned companies that are independent of government influence on supply and demand. According to Levine (2005), governmental managers effect in firm`s risk by political decorum and Subsequently, the Firm`s value also affected. Therefore, Governmental Affiliation can be used as a significant variable in firm`s value.

Keywords

Accounting and Auditing Research
Volume 10, Issue 37
April 2018
Pages 57-72

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