Mehran Kaviyani Joopari - MSc Petroleum University of Technology- Tehran Faculty of Petroleum, Accounting Department (Corresponding author)
Ali Mohammad Ghanbari - Professor at Petroleum University of Technology- Tehran Faculty of Petroleum, Accounting Department
Moslem Peymany Furoshany - Professor at Allameh Tabataba’i University, Finance and management Department

Business expansions along with number of new companies being engaged in variety of industries aimed at getting bigger market share, underscored the role of corporate governance within the financial sphere. One of the important issues in corporate governance is acquisition. Due to the significant impact of companies in refining and petrochemical sectors on capital market and whole economy, their corporate governance should be addressed accordingly. In this study, the relation between acquisition and aspect of the company, in firms listed in Tehran stock exchange or Iranian farabourse[i], has been investigated for the period ۲۰۰۹-۲۰۱۴. Size (logarithm of total assets), management efficiency (operational profit to total assets), efficient financial structure (Current debt to cash) and incorrect valuation (price to book value) are among factors affecting on acquisition a company. In this study we found that the type of company (refinery and petrochemical) does not effect on acquisition. With the investment policy of firms, they can choice appropriate target for acquisition when considering the size of target compared with firm size, management efficiency, efficient financial structure and the price to book value ratio of the target company. [i]. Iran Fara Bourse Co. (IFB) also known as Farabourse is an over-the-counter market for securities and other financial instruments in Tehran, Iran which operates under official supervision of SEO (Securities and Exchange Organization).

Acquisition, Financial Ratios, Refinery and Petrochemical companies