Relationship non-executive board and ownership concentration with corporate bankruptcy

摘要

This study investigates the impact of some components of?corporate governance on bankruptcy of the companies. In this respect, the companies listed on Tehran Stock Exchange have been studied. They were 95 companies which have been selected through randomly method. The time period of the study was from 2008?to 2010.?This empirical research is based on financial statements in which regression and F tests are used to test the hypotheses and Falmer method is used to study corporate bankruptcy. The study results suggest there is a significant negative relationship?between more independent non-executive board and corporate bankruptcy ratio. The more these people participate, the less likely corporate bankruptcy will be. In addition,?the higher the ownership concentration is, the less likely corporate bankruptcy will be, and it means that these two were positively correlated. Other studies showed that in more than 65% of Iranian companies, the ratio of non-executive board?was higher than 60% and most Iranians companies had high ownership concentration and low stockholder dispersion.