Business and Economic Horizons

  Previous Article | Back to Volume | Next Article
  Abstract | References | Citation | Download | Preview | Statistics
Volume 8
Issue 2
Online publication date 2012-12-15
Title Studying the effect of assets return rate on stock price of the companies accepted in Tehran stock exchange
Author Parviz Saeidi, Abolghasem Okhli
Abstract
One of the criteria to evaluate management ability of a company to gain return is assets return rate, with regard to existing resources. Management is expected to use the current assets so that the maximum return is gained.                                                                 
The present study aims at investigating assets return rate impact on stock prices of the companies accepted in Tehran stock exchange. In this research, assets return rate is considered as independent variable, and stock price as dependent variable, and company size, company age, and beta coefficient as control variables from 2001 to 2010. Research method is correlation in terms of hypothesis testing, and through multi-variable regression statistic analysis has been done. The research findings indicate strong impact and relationship between independent and dependent variables, and the research hypothesis has been accepted.

Citation
References
Ala, E., 2005. Investment management principles in stock exchange, Tahuri pub, First print, Tehran: Agah pub.

Antonides, G., Van Der Sar, Nico L., 1990. “Individual expectations, risk perception and preferences in relation to investment decision making,” Journal of Economics Psychology, Vol.11(2), pp.227-45

Ball, R., Brown, P., 1968. “An empirical evaluation of accounting income number,” Journal of Accounting Research, Vol.6(2), pp.159-78

Basu, S., 1977. “Investment performance of common in relation to their price earning ratios: A test of the efficient market hypothesis,” The Journal of Finance, Vol.22, No.3, pp.663-82 

Bernard, V., 1995. “The Felthman-Ohlson framework: Implications for empiricists,” Contemporary Accounting Research, Vol.4, pp.733-44

Biggs, S., 1979. “An  empirical  investigation  of  the  information  processes  underlying  four  models  of choice  behavior,”  in  Burns, T.,  (ed.),  Behavioral  experiments  in  accounting  II,   (Columbus,  Ohio: College  of  Administrative  Science,  Ohio  State  University)

Chen, L., Zhao, X., 2007. “What drivers stock price movement?” The Eli Broad College of Business, Michigan State University

Dichev,  I., 1997. “Measuring value relevance in accounting - based variables without reference to market prices,” Journal of Accounting Research, Vol.37(2), pp.319-52

Easton, P., Harris, T., and Ohlson, J., 1992. “Aggregate accounting earnings can explain most of security returns: The case of long return intervals,” Journal of Accounting and Economics, Vol.15, pp.119-42

Fairfield, P., Whisenant, S., Yohn, T., 2003. “Accrued earnings and growth: Implications for future profitability and market mispricing, The Accounting Review, Vol.78(1), pp.353-71 

Fama, E., French, K., 1993. “Common risk factors in the returns on stocks and bonds,” Journal of Financial Economics Vol.33(1), pp.3-56

Gallizo, J., Salvador, M., 2006. “Share prices and accounting variables: A hierarchical Bayesian analysis,” Review of Accounting and Finance, Vol.5(3), pp.268-78

Kordestani, GH. R., RoudNeshin, H., 2006. Investigating the value relevance of cash and accruals components of accounting earnings, Iranian Acc. 

McMillan, D., 2001. “Nonlinear predictability of stock market returns: Evidence from nonparametric and threshold models,”  International Review of Economics and Finance, Vol.10(4), pp.353-68

Omran, M., Ragab, A., 2004. “Linear versus non-linear relationships between financial ratios and stock return,” Review of Accounting & Finance, Vol.3(2)., pp.84-102

Rahgozar, R., 2005. “Valuation models and their efficacy predicting stock prices,” Iranian Accounting & Auditing Review, No.45, pp.8-24

Richard, P., Zarowin, P., 1999. The value relevance of dividends, Book value and earnings, New York: Printice-Hall

Zariffard, A., Nazemi, A., 2005. “Studying the role of inefficiency in the relationships among accounting factors and stock price and return of the companies accepted in Tehran stock exchange,” Social sciences and humanities journal of Shiraz University, 22,  pp.15-32

Keywords Stock price, assets return rate, investment, company size
DOI http://dx.doi.org/10.15208/beh.2012.7
Pages 12-22
Download Full PDF Download
  Previous Article | Back to Volume | Next Article
Share
Search in articles
Statistics
Journal Published articles
BEH 558
Journal Hits
BEH 1132642
Journal Downloads
BEH 41256
Total users online -