The Effects of Outside Board on Firm Value in Tehran Stock Exchange From the Perspective of Information Transaction Costs

The aim of this study is to investigate the eects of outside board on rm value in tehran stockexchange (tse) from the perspective of information transaction costs. to do so, a sample of 96rms listed in tse is selected to be studied during the period of 2003-2012. tobin q ratio is usedto measure rm's value and bid-ask spread for information transaction costs. in addition to thesevariables, four control variables are adapted namely rm's characteristic, age, size and duality. theresults of the study show that there is not a signicant relationship between outside board and rm'svalue. investigating the relationship between outside board and rm's value, the results indicate thatonly in food and non-metal industries, there is a negative relationship between outside board andrm's performance. therefore, it can be concluded that not in all of industries outside board aectsrm's value. further, results do not prove the eects of outside board on information transactioncost. in addition, the results do not support that information transaction cost aect rm's value.finally, the results also suggest that independence and presence of outside board of director memberdoes not aect rm's value in rms with lower information transaction cost.