Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 2 5 2017 04 01 Investigation of the Factors Affecting on Probability of Company Acquisition (Focusing on Refining and Petrochemical Companies) 9 22 11029 EN Mehran Kaviyani Joopari MSc Petroleum University of Technology- Tehran Faculty of Petroleum, Accounting Department (Corresponding author) Ali Mohammad Ghanbari Professor at Petroleum University of Technology- Tehran Faculty of Petroleum, Accounting Department Moslem Peymany Furoshany Professor at Allameh Tabataba’i University, Finance and management Department 0000-0002-4003-8295 Journal Article 2017 01 05 Business expansions along with number of new companies being engaged in variety of industries aimed at getting bigger market share, underscored the role of corporate governance within the financial sphere. One of the important issues in corporate governance is acquisition.<br /> Due to the significant impact of companies in refining and petrochemical sectors on capital market and whole economy, their corporate governance should be addressed accordingly.<br /> In this study, the relation between acquisition and aspect of the company, in firms listed in Tehran stock exchange or Iranian farabourse[i], has been investigated for the period 2009-2014. Size (logarithm of total assets), management efficiency (operational profit to total assets), efficient financial structure (Current debt to cash) and incorrect valuation (price to book value) are among factors affecting on acquisition a company. In this study we found that the type of company (refinery and petrochemical) does not effect on acquisition. With the investment policy of firms, they can choice appropriate target for acquisition when considering the size of target compared with firm size, management efficiency, efficient financial structure and the price to book value ratio of the target company.<br /> <br clear="all" /><br /> <br /> [i]. Iran Fara Bourse Co. (IFB) also known as Farabourse is an over-the-counter market for securities and other financial instruments in Tehran, Iran which operates under official supervision of SEO (Securities and Exchange Organization). Acquisition Financial Ratios Refinery and Petrochemical companies http://www.ijfma.ir/article_11029_34c19f785e19b343fe2f54b3202f632c.pdf