University of Isfahan Financial Accounting Research 2322-3405 7 2 2015 08 23 Investigation on the Ownership Structure and Relationship between Board of Directors’ Compensation and Firms Performance Listed in Tehran Stock Exchange Investigation on the Ownership Structure and Relationship between Board of Directors’ Compensation and Firms Performance Listed in Tehran Stock Exchange 32 17 17041 FA Ahmad Ahmadpour Professor of Accounting, Univercity of Mazandaran, Babolsar, Iran Saeed Javan Master of Accounting, University of Mazandaran, Babolsar, Iran Journal Article 2016 06 14 s soon as a firm owner appoints a manager to act on his behalf and delegates decisions making authority to him, an agency relationship results in. In an agency relation, either side is after maximizing their interests. There are different approaches in terms of how conflicts of interests should be treated and dealt with.  However, one of the means to resolve this problem is to make the bonuses of the executives based on their performances. The present study tries to find evidence for the effect of ownership concentration on the relationship between the board of directors’ compensation and the company’s performance on different types of ownerships in Tehran stock exchange. In this study 53 companies for period of 6 years from 2007 to 2012 are selected. This is a descriptive study and statistical procedures such as panel data multivariate regression models are used for testing the research hypotheses. Results indicate that, the concentration of ownership has a negative significant effect on the relationship between the board of directors’ compensation and the company’s performance. However in corporate type of ownership, the concentration of ownership has a positive significant effect on the relationship between the board of directors’ compensation and the annual stock returns. Where as, for management ownership no such relation is observed.   <strong> </strong>   s soon as a firm owner appoints a manager to act on his behalf and delegates decisions making authority to him, an agency relationship results in. In an agency relation, either side is after maximizing their interests. There are different approaches in terms of how conflicts of interests should be treated and dealt with.  However, one of the means to resolve this problem is to make the bonuses of the executives based on their performances. The present study tries to find evidence for the effect of ownership concentration on the relationship between the board of directors’ compensation and the company’s performance on different types of ownerships in Tehran stock exchange. In this study 53 companies for period of 6 years from 2007 to 2012 are selected. This is a descriptive study and statistical procedures such as panel data multivariate regression models are used for testing the research hypotheses. Results indicate that, the concentration of ownership has a negative significant effect on the relationship between the board of directors’ compensation and the company’s performance. However in corporate type of ownership, the concentration of ownership has a positive significant effect on the relationship between the board of directors’ compensation and the annual stock returns. Where as, for management ownership no such relation is observed.   <strong> </strong>   https://far.ui.ac.ir/article_17041_4ec2ec9c46663b797c311d2807055cef.pdf