Examining the Impact of Managers’ Compliance with Corporate Governance Principles on the Performance of Companies Listed on the Tehran Stock Exchange and Iran Fara Bourse

Abstract

Corporate governance, as a framework for controlling and monitoring companies, has a significant impact on corporate performance and investor confidence. In Iran, given the vital role of the capital market in the national economy, compliance with corporate governance principles has become a necessity. This study examines the requirements for managers’ compliance with corporate governance principles in companies listed on the Tehran Stock Exchange and Iran Fara Bourse. This research is descriptive-analytical in nature, and the required information was collected through library research and the review of scholarly articles and authoritative documents. Qualitative and inferential methods were employed for data analysis, and the research hypotheses were examined on the basis of logical and comparative analysis. The primary objective of this study is to investigate the impact of compliance with corporate governance principles on corporate performance and to identify the challenges and strategies for improving corporate governance in Iran. Specifically, the effects of information transparency, board independence, and sustainability reporting on the financial and non-financial performance of companies were examined. The research hypotheses include the positive effect of compliance with corporate governance principles on improving companies’ financial and non-financial performance, the effect of information transparency on reducing investment risk, and the role of board independence in enhancing corporate efficiency. The findings indicated that compliance with corporate governance principles, particularly information transparency and board independence, has a positive effect on corporate performance. Furthermore, improving laws and increasing managers’ awareness can play an effective role in strengthening corporate governance in Iran. It is recommended that regulatory bodies take effective measures to improve corporate governance by developing new regulations and supporting educational and training programs.