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The Impact of Corporate Governance Measures on Financial Performance: Applying Fuzzy Logic in Corporate Governance Assessment
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Majid Abdollahi   , Ali Esmailzade Moghri * , Amirreza Keighobadi , Ahmad Yaghoobnejad |
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Abstract: (4 Views) |
| In this research, based on the opinion poll of experts and the development of fuzzy inference rules, a fuzzy expert system has been designed to evaluate corporate governance measures. Also, data related to 160 companies listed on the Tehran Stock Exchange as a sample was collected and their information was processed using the fuzzy system. The output of this fuzzy system shows the corporate governance rank in the mentioned companies. The result of this assessment is shown in a list of strong (good) and poor companies in terms of corporate governance ranking. Also, in this study, the impact of corporate governance measures on the financial performance of companies, including economic value added, market value added, cash value added, return on assets, and return on equity, has been examined in the form of five models. Panel multiple regression was used to test the models. In addition, the results of the test on the impact of company rankings on their financial performance have been presented. For this purpose, the regression test of the financial performance of companies with their corporate governance rating has been used. In addition, the financial performance of good and poor companies in terms of corporate governance has been examined using a test comparing the averages of the financial performance of the two groups. The research findings indicate that the financial performance of companies has a significant positive relationship with the corporate governance rating. In addition, economic value added, market value added, return on assets, and return on equity in well-rated companies differ significantly from economic value added, market value added, return on assets, and return on equity in poorly rated companies in terms of corporate governance. This is while there is no significant difference between cash value added in companies with good ratings and cash value added in companies with poor ratings. |
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| Keywords: Corporate Governance, Ranking, Fuzzy Expert System, Financial Performance, Fuzzy Logic. |
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Full-Text [PDF 912 kb]
(4 Downloads)
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Type of Study: Research |
Subject:
Management
Received: 2026/04/20 | Accepted: 2026/06/3 | Published: 2026/09/1
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