—In this paper the effect of corporate governance on Iran’s economic growth is investigated. Capital market is one of the important sections in the economy of countries. The economic growth is the source of capital market, on the other hand the efficient financial institutions is the main factor to achieve the desired economic growth. The development of stock exchange markets depends on good implementation of corporate governance which in turn culminates at increased dynamic economic growth. Therefore, we investigated the effect of corporate governance on Iran’s economic growth during 1994-2010; using Time series method was inspired by General Method of Momentums. The results show that corporate governance is reinforced directly and indirectly through the positive influence of capital market performance indices on economic growth.
—Corporate governance (CG), GMM economic growth, tehran stock exchange (TSE).
Fatemeh Mehrabani is with Department of Management and Economic, Science and research Branch, Islamic Azad University Tehran, Iran (email@example.com).
Cite:Fatemeh Mehrabani, "Corporate Governance, Iran Stock Market and Economic Growth," International Journal of Trade, Economics and Finance vol.3, no.5, pp. 370-373, 2012.