Study on institutional ownership stabilizing effect on the performance of listed companies on the Tehran Stock Exchange

Institutional investors are known as an effective external mechanism in monitoring company. These groups of capital market participants can be have basic role by having the knowledge and necessary expertise as well as access to the effective communication channels in improving corporate governance systems, consequently lead to increase effectiveness and efficiency. Therefore, these features make difference between institutional investors from other shareholders. Thus, researchers have most attention on decisions, goals and behavior of the shareholders and its relation to company performance.So at this research, we are studying about effect of stabilizing institutional ownership on the performance of listed companies in Tehran stock exchange during 2008-2012. In this case, we used QTOBIN's index to assess company performance and used retention of institutional ownership to measure institutional ownership stability. As the data are combination data types, so we examined the hypostasis of this study using Panel Data. The results of hypotheses testing showed negative and meaningful correlation between stability institutional ownership and firm performance