The Relationship between Firm Performance, Reward of Executive Managers and Fluctuations of Investment Volume in the Firms Listed on TSE

The present study aimed to evaluate the relationship between firm performance, reward of executive managers and fluctuations of investment volume in the firms listed on TSE. This study is library, analytical–causal and based on panel data analysis. In this study, financial information of 109 firms listed on TSE during 2008 to 2013 (654 firms-year). SPSS 20, Eviews 7 and Minitab 16 software are used for data analysis. The results of study regarding the support of first main hypothesis showed that in case of fixation of other factors, the firms with high liability ratio, their capital structure is based on the selection of ROA–based reward payment to ROE–based reward payment. Based on the analyses, regarding the support of second main hypothesis, we found that in case of fixation of other factors, the firms with high liability ratio, their capital structure can select ROE–based reward payment against reward payment based on ROA–based reward payment