Abstract

Nowadays, the institutional investors play more and more important roles in the financial market. Institutional investors have substantially grown matured markets globally in the last two decades parallel with the increase in their impact. They seek to own large proportions of equities; as a result they have become influential on the performance of companies in which they invest. The aim of this study is to create the instances which are related to the controlling role of the institutional investors. 71 companies’ information from listed companies on Tehran Stock Exchange (TSE) were examined during 2001 to 2008. The results show that the growth and institutional investors’ level variables are the most important factors which have positive effect on the value of the company. On the other hand, the institutional investors’ concentration, debt and size variables are the most important factors, which have negative effect on the value of the company. There is a meaningful negative relationship between the institutional investors’ concentration and corporate value, that is, the institutional investors’ concentration decreased the company’s value.

Key words: Institutional investors, institutional investors’ concentration, companies’ value.