Investigating the Role of Corporate Governance Model in Evaluating the Performance of the Accepted Banks in Tehran Stock Exchange Using Structural Equations

Corporate Governance is one of the most important issues among monetary and financial institutions. Furthermore, a powerful corporate governance in firms and banks is considered as a tool to prevent fraud. In this study, the corporate Governance model in banks is prioritized and extracted using the experts’ opinions and Analytical Hierarchy Process (AHP). Then, the relationship between this Model and the performance of ۲۲ banks accepted in Tehran stock exchange are studied. The banks’ performance is studied by using financial ratios in ۴ classes including profitability, liquidity, activity (efficiency) and leverage (investment). Also, a comparison between the performances of the accepted banks in stock exchange is performed according to the extracted model using Structural Equation Modeling (SEM) and the "SPSS" software. The experimental results show that there is a significant relation between the corporate Governance components and evaluation indicators of banks’ performance. The internal control dimension has the highest influence on profitability and liquidity ratios. Also, the management control dimension has the highest effect on activity and investment ratios of banks.

Keywords:

corporate Governance model , banks , profitability ratios , activity ratios , liquidity ratios , investment ratios