A study on the effect of board of directors on the rate of corporate transparency

The main target of this study is to consider the effect of the combination of board of directors on the corporate transparency in some companies among selected ones in Tehran Stock Exchange Market over the period of 2007- 2010. In this research, the combination of board of directors is selected among some factors of corporate transparency such as structure of ownership and the rights of owners, financial information and statistics and structure and combination of board of directors and managers as a sub-indicator for corporate governance. Linear regression statistical method is used to test hypotheses of study. The size of α is considered as 5% and hypotheses are accepted or rejected by means of Durbin-Watson and Clemogrov-Smirnov tests and by comparing p-value with α. At last, by means of forward regression method, the effect of control variables is considered over each hypothesis. The results show that the members of board of directors have no effect on partnership transparency, but effect on financial data and information and structure and combination of board of directors.