The purpose of this study is to investigate the relationship between corporate governance mechanisms and financial decisions with economic value added in Tehran stock exchange. With respect to nature, this study is an applied research and with respect to method this study is a causal research. Using systematic sampling methods, 68 companies were selected from 16 industries in Tehran stock exchange during the period from 2006 to 2012. In order to test hypotheses, panel data regression, Durbin-Watson statistic, F statistic, Chow test and Hausman test were used. According to the research findings, there is no meaningful relationship among three elements of corporate governance (ownership concentrate, independence of directors and specialty of auditor) and two elements of financial decisions (capital structure and dividend policy) with economic value added. But there is a negative and meaningful relationship between institutional investors (an element of corporate governance) and economic value added.
