Research showed that quality governance of the companies can affect some of their financial variables. This research analyzes the effect of quality of governance on the financial variables (current ratio, instant ratio, market value in relation to book value and company’s size). Therefore 80 companies have been chosen which are active in Tehran stock exchange during the years 1385 to 1388 and with the use of Pearson integration and regression test analyzed. Research results show that there isn’t a meaningful relation between quality governance and companies’ financial variables. Key words: quality of governance, capital structure, current ratio, company’s functioning. Introduction: A company’s suitable governance system can cause improvement in the company’s functioning and therefore they will have more accessibility to the foreign capitals. And stable economical growth is obtained. Whenever a company plans and executes this system in optimized pattern, in that case people will trust the financial system and therefore the value of the company will increase and financing in the companies will increase too and this causes economical growth. On the other hand, effective execution of governance
Research showed that quality governance of the companies can affect some of their financial variables. This research analyzes the effect of quality of governance on the financial variables (current ratio, instant ratio, market value in relation to book value and company’s size). Therefore 80 companies have been chosen which are active in Tehran stock exchange during the years 1385 to 1388 and with the use of Pearson integration and regression test analyzed. Research results show that there isn’t a meaningful relation between quality governance and companies’ financial variables. Key words: quality of governance, capital structure, current ratio, company’s functioning. Introduction: A company’s suitable governance system can cause improvement in the company’s functioning and therefore they will have more accessibility to the foreign capitals. And stable economical growth is obtained. Whenever a company plans and executes this system in optimized pattern, in that case people will trust the financial system and therefore the value of the company will increase and financing in the companies will increase too and this causes economical growth. On the other hand, effective execution of governance
419862985673379590_cgq.docx