The Return on Assets Ratio and Its Effect on Stock Prices of Companies in the Tehran Stock Exchange

Abdul Rahman Rashidfar

Abstract


Growth and prosperity of any country depends on investment and proper planning. Proper guidance of cash flows will follow towards production and investment activities; Economic growth, increasing gross domestic product, creating jobs, increasing income and welfare of the public eventually. The basic objective of any investment is the more complete profits and business efficiency. Returns or reward investment, including current income (eg revenue) and increase or decrease the value of assets (profit or asset loss). "Real rate of return an investment in securities, How investments a person show in the past. "Stock investors many factors to consider when making an investment. Merton believes that investors willing to take possession of securities that have a greater awareness and know about it or have recently attracted their attention somehow. In this study, the role of the return on assets on the stock price of companies in the Tehran Stock Exchange has been discussed.

Full Text:

PDF 14-17

References


Al-Qenae, R., Li, C. A., & Wearing, B. (2015). The information content of earnings on stock prices: The Kuwait Stock Exchange.

Ali, A., & Hwang, L.-S. (1999). Country-specific factors related to financial reporting and the value relevance of accounting data.

Anthony, J. H., & Ramesh, K. (1992). Association between accounting performance measures and stock prices: A test of the life cycle hypothesis. Journal of Accounting and Economics, 15(2-3), 203-227.

Arkan, T. (2016). The Importance of Financial Ratios in Predicting Stock Price Trends: A Case Study in Emerging Markets. Finanse, Rynki Finansowe, Ubezpieczenia(1 (79) Rynek kapitałowy i zarządzanie wartością), 13-26.

Frankel, R., & Lee, C. M. (1998). Accounting valuation, market expectation, and cross-sectional stock returns. Journal of Accounting and Economics, 25(3), 283-319.

Götze, U., Northcott, D., & Schuster, P. (2015). Investment appraisal: methods and models: Springer.

Hameed, A., Morck, R., Shen, J., & Yeung, B. (2015). Information, analysts, and stock return comovement. Review of Financial Studies, hhv042.

Kelly, P. J. (2014). Information efficiency and firm-specific return variation. The Quarterly Journal of Finance, 4(04), 1450018.

Lukason, O., Laitinen, E. K., & Suvas, A. (2015). Growth patterns of small manufacturing firms before failure: interconnections with financial ratios and nonfinancial variables. International Journal of Industrial Engineering and Management, 6(2), 59-66.

Narayan, P. K., Narayan, S., & Thuraisamy, K. S. (2014). Can institutions and macroeconomic factors predict stock returns in emerging markets? Emerging Markets Review, 19, 77-95.

Narayan, P. K., Sharma, S. S., & Thuraisamy, K. S. (2014). An analysis of price discovery from panel data models of CDS and equity returns. Journal of Banking & Finance, 41, 167-177.

Ou, J. A., & Penman, S. H. (1989). Financial statement analysis and the prediction of stock returns. Journal of Accounting and Economics, 11(4), 295-329.

Penman, S. H., & Zhang, X.-J. (2002). Accounting conservatism, the quality of earnings, and stock returns. The accounting review, 77(2), 237-264.

Richmond, C., Yackovlev, I., & Yang, S. C. S. (2015). Investing Volatile Resource Revenues in Capital‐Scarce Economies. Pacific Economic Review, 20(1), 193-221.

Siegel, J. J. (2014). Stocks for the Long Run 5/E: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies: The Definitive Guide to Financial Market Returns & Long-Term Investment Strategies (EBOOK): McGraw Hill Professional.

Vogel, H. L. (2014). Entertainment industry economics: A guide for financial analysis: Cambridge University Press.

Wahlen, J., Baginski, S., & Bradshaw, M. (2014). Financial reporting, financial statement analysis and valuation: Nelson Education


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

World of Researches Publication