Abstract
Article history: Received October 28, 2013 Received in revised format 20 November 2013 Accepted 12 January 2014 Available online January 16 2014 This article evaluates the relationship between institutional ownership and compositional performance indices in company life cycle among corporations accepted in Tehran Stock Exchange comparatively. In representation relations owner’s goal in maximum wealth; therefore, the goal controls the representative work and evaluates his performance. The statistical society in this research consists of corporations accepted in Tehran Stock Exchange over the period 2006-2010. A cross-sectional regression of corporations is obtained and along with different stages of life cycle, their variance is analyzed. The results of this research indicate that: 1. In corporations’ growth stage, institutional ownership causes increasing assimilation performance and decreasing economic and financial performance. 2. In maturity stage, institutional ownership causes increasing assimilation performance but it has no effect on financial performance and it has a twofold effect on economic performance. 3. In decline stage, institutional ownership has a twofold effect on assimilation performance and it causes decreasing economic and financial performance. © 2014 Growing Science Ltd. All rights reserved.
Highlights
For many years economists assumed that all groups work on a single joint goal, but during the past thirty years, there were some cases of conflict of interests among various parties
Institutional ownership causes increasing assimilation performance but it has no effect on financial performance and it has a twofold effect on economic performance
Dehdar (2006) reviewed the effect of life cycle structure on explanatory power of profit components and cash flow. His findings indicated that in growth and maturity stages, profit-based valuation models and liability items embody more additive explanatory power compared with operative cash flow, investment and funding-based models, but in decline stage its vice versa
Summary
For many years economists assumed that all groups work on a single joint goal, but during the past thirty years, there were some cases of conflict of interests among various parties. His research findings suggested that there was a large-number of institutional shareholders in stock exchange accepted corporations, there was no significant relationship between institutional shareholders and yield, but based on research results carried out in other countries, there is a positive or still negative relationship. Their study results revealed that there was a significant and negative relationship between institutional ownership level and its focus on profit management. Navissi and Naiker (2006) used pound theories and considered the relationship between institutional ownership and corporation value in New Zealand They reported that institutional investors were more motivated to supervise management; their presence had a positive effect on corporation value, but in higher levels of ownership, institutional investors may encourage board of directors to take unfavorable decisions. In corporations, which were in maturity and different stages, the level of using activity-based cost finding system was higher compared with growth stage. Karami and Omrani (2009) investigated the effect of corporation life cycle and conservatism on corporation value
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
