Examining the relationship between the stability and sustainability of the company's owners and the company's financial performance

Abstract:

Investigating the impact of the stability of shareholders and owners of the company as one of the issues of corporate governance on the performance of company management and ultimately its impact on the company's financial performance has become the subject of recent research, and the researchers' findings indicate the existence of a positive effect on the control of management performance in an efficient and useful manner, and ultimately increasing the financial performance of companies. The financial performance of the companies listed in the Tehran Stock Exchange in the eight-year period from 1980 to 1988 was analyzed and the data was analyzed by Excel and SPSS software. The results of the research do not confirm the existence of a significant positive relationship. We examine the relationship between the stability of shareholders and the company's financial performance. Since the composition of shareholders is used as part of the subject of corporate governance to control company operations and management performance, today the stability of shareholders is also considered as part of the above topic and the investigation of its effect on the performance of the company has become the subject of recent research. Therefore, the present chapter begins by presenting the generalities of the research topic and the research problem, and the main questions related to the problem are stated, and the necessity of the research, its related goals, and the research hypotheses that include three main hypotheses and nine sub-hypotheses are stated. In the following, in order to better check and avoid rework during the research and to use the previous findings of the researchers, the background related to the research inside and outside of Iran is presented. rtl;">More studies have been done on a specific group of shareholders, which we will discuss below:

McConnell and Servas [1] (1990) have found a positive relationship between the percentage of legal owners and Kiwi Tobin of the company. On the other hand, similarly, Bhojraj and Sengupta [2] (2003) show that companies with a higher percentage of shares in the hands of the main owners lead to lower returns and higher bond issuance rates.

Studies by Elias Eliasiani [3] and Jingi Jia [4] found a relationship between the stability of the main owners and the company's financial performance, that the greater the stability among this group of owners, the higher the financial performance

On the other hand, this group, along with Kunye X and Mao [5], have found a positive relationship between the stability of ownership of legal (corporate) shareholders and the cost of debt. The conducted studies have been interested in finding the relationship between the stability of legal (corporate) shareholders and other related variables. In this research, an attempt has been made to investigate the relationship between this characteristic of shareholders on a wide level of types of shareholders with the company's financial performance in order to achieve more useful and accurate results. On the performance of companies, examining the impact of their changes and reaching a reasonable and appropriate criterion to increase operational and financial efficiency, has become the subject of many researches. The existence of exorbitant costs to control the decisions and management activities due to the conflict of interest between the management and the owners of the company has put the ownership structure and corporate governance system as a suitable solution to reduce the above costs.

Since the increase in the duration of the presence of shareholders as owners and shareholders of the company increases the sense of responsibility of the owner (shareholder) towards controlling and monitoring the decisions made by the management and the way of implementing programs. is managed, and their familiarity with the characteristics of the company and greater recognition of the opportunities and threats facing the company compared to other shareholders with a short and temporary ownership life and the importance of increasing the value of shares in the long term will make them more sensitive to management decisions and control over its letters.. On the other hand, there are temporary shareholders who buy and sell them due to short-term changes in stock prices and become owners of companies in order to complete their stock portfolio and control risk. It seems that such shareholders do not show much interest in the decisions taken and the existing procedures in the company, because controlling and monitoring the company's activities and management's decisions and plans requires spending time, money, influence, continuous presence and finally knowing about the company, which is short-term in terms of the ownership life. It is not profitable for shareholders to do such actions. The issue becomes important since in this era, one of the goals of management and organizations and even governments is to facilitate the purchase and sale of company shares. (one of the clear examples of this facilitation is the use of the Internet and online purchase and sale) because, firstly, this causes a greater and easier increase in attracting capital for companies, and on the other hand, it leads to an increase in the price of the company's shares, and finally, it is a factor in increasing the financial return of companies, so this increases the number of shareholders and owners with less stability and longevity. It increases low ownership and less stable owners. Now the problem is, what effect can the stability and increase in the lifespan of shareholders' ownership have on the company's financial performance, i.e. does the difference in the stability of shareholders have an effect on the company's financial performance. Therefore, it is tried to achieve the result of this research to take an effective step to improve the financial performance of the company. In short, it can be said that the main purpose of the research is to investigate the effect of the stability of the shareholders (owners) of the companies listed in the Tehran Stock Exchange on their performance. The main question of the research is whether there can be a meaningful relationship between the stability and longevity of shareholder ownership and the company's financial performance, that is, does the difference in the stability of shareholders have an effect on the company's financial performance? The problem has been recognized as important, theorizes. This theory can not necessarily be the words of the researcher and logically derive from the previous results about the problem. In short, the theoretical framework deals with the relationship between variables such as independent, dependent, intervening and modulating variables that are thought to play a role in the transformation of the conditions under investigation. Creating such a theoretical framework helps in establishing and constructing hypotheses, tests, and also completing the researcher's understanding. Based on the review of the related literature on Corporate Governance, stability of ownership can be posed as an approach to solving this problem. So this study investigates the effects of ownership stability on operating performance of the listed companies in the Tehran Stock Exchange. The statistical sample of the research includes 50 companies over a period of five years (1388-1380). The statistical approach of the study is a pearson correlation and regression.