Providing a Corporate Governance Ranking Model for Companies Affiliated with a Military Organization: An Approach Based on OECD 2024 Guidelines

Abstract

In recent years, following numerous corporate collapses, the attention of researchers and policymakers toward corporate governance—particularly its quality assessment—has increased. Proper corporate governance plays a significant role in enhancing transparency, accountability, and sustainability of firm performance; therefore, evaluating its quality in state-owned and quasi-state-owned companies is of particular importance. In Iran, due to the extensive role of the government in business activities, there has always been a challenge in designing a localized model for ranking corporate governance in companies affiliated with governmental institutions, including military organizations. The purpose of this study is to design and present a comprehensive index for ranking corporate governance in non-military (non-weaponized) companies affiliated with a military organization, based on the OECD (2024) guidelines. To achieve this, using qualitative content analysis, 7 dimensions, 40 sub-dimensions, and 110 indicators were extracted. Then, with the input of 7 experts and the Analytic Hierarchy Process (AHP), the weights of the components were determined. The results showed that “board composition and responsibilities” and “disclosure, transparency, and accountability” have the highest importance. The proposed model enables quantitative and comparative evaluation of corporate governance.