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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
CORPORATE GOVERNANCE AND CULTURE IN IRAN
Ali Rashidpur (PhD) Islamic Azad University, Science and research Branch, Department of Management, Isfahan, Iran Qader Vazifeh Damirchi (PhD Student)1 Islamic Azad University, Science and research Branch, Department of Management, Isfahan, Iran Moosa Zamanzadeh Darban (PhD Student) Islamic Azad University, Science and research Branch, Department of Management, Isfahan, Iran

OCTOBER 2011
VOL 3, NO 6

Abstract

Culture in general consists of values, ideas about what in life are important, norms, methods or sanctions of enforcing values, institutions, structures of a society within which values and norms are transmitted. The purpose of study is to search for the basic characteristics of the relationships between the Iranian culture and the degree of implementing the principles of corporate governance in Iranian companies. The study involves an analysis and an assessment of corporate governance practices in Iran in terms of Iranian cultural concepts and dimensions. According to Hofstede Iranian society classified as high power distance, Individualism, Masculinity and high uncertainty avoidance.
Key Words: Corporate Governance, Culture, Governance, Iran

INTRODUCTION

In the current economic climate much attention has been focused upon corporate governance and the failures in governance which have led to the financial problems experienced by many companies, and particularly financial institutions (Crowther, 2008). Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled (Larcker, Irvin,2011; Cadbury, 2011). An important theme of corporate governance is the nature and extent of accountability of particular individuals in the organization, and mechanisms that try to reduce or eliminate the principal-agent problem (Bowen ,