Abstract

The best corporate governance with regard to the specific circumstances of each country, is a system that has higher performance in companies. The purposeof thisstudy is that investigating “the relationship between corporate governance mechanisms and corporate performance” that Percentageof ownership of the non- governmental public institutes and revolutionary institutes, percentage of government ownership, CEO duality and debt were selected as the Corporate Governance mechanisms in the152 firms listed in Tehran stock exchange from 1385-1389. Firms efficiency scores using Data Envelopment Analysis (DEA) was calculated and Tobitregressionmodelwas usedtotestthehypotheses.The resultsshowthat there is a significantpositiverelationship between thepercentage ofgovernmentownership and percentage ofownership of the non-governmental public institutesand revolutionary institutes with firm performance. Investigating the nonlinearrelationshipbetween thepercentage of ownership the non-governmental public institutesand revolutionary institutes with performance showed that increasing the percentage of ownership of the non-governmental public institutesand revolutionary institutes, up to the ownership threshold of 45.22%, leads to improvedcorporateperformance and thereafter itwill lead todecreasedperformance.While, no significantnonlinearrelationship was observed between the percentage ofgovernmentownership with corporateperformance. Also, there was no significant relationship between CEOdualityand debt with firm performance.