Abstract
This paper examines the impact of independent managers, institutional shareholders and audit expenses on the probability of financial crisis of the listed companies in Tehran Stock Exchange (TSE). The target sample includes 75 firms of the listed companies in TSE during 2006 to 2010 years (1385 to 1389 Iranian calendar). To doing so in the first step, the logit regression model was conducted to fit a model to calculate the probability of financial crisis in these companies. Then using this model, the probability of financial crisis in these companies was calculated in each year. Finally, using simple linear regression, the effect of independent variables including independent managers, institutional shareholders and audit expenses on the financial crisis, has been tested. The result shows that independent managers and audit expenses, significantly affect the probability of financial crisis in company but the institutional shareholders does not.