Evaluation of factors affecting price earnings ratio of listed companies in Tehran Stock

Subject Areas : Financial Knowledge of Securities Analysis

سیدعلیقلی  روشن ¹ (ندارد)
ابوالفضل  آرین ² (مسئول مکاتبات)
سید حسن  حسینی ³ (ندارد)
کامبیز  نوابی زند ⁴ (ندارد)
علی  دریکنده ⁵ (ندارد)

Received: 2012-04-21 Accepted : 2013-02-03 Published : 2012-09-10

Keywords: The price to earnings ratio, Growth rate of dividends, Coefficient of&#x0D, &#x0D, dividends pay, Systematic Risk (Beta),

Abstract :

Price to earnings ratio is widely used by investors and for investors has a majorrole in investment decisions. Hence having a scientific understanding of the price toearnings ratio and ability to identify factors affecting has great importance. Based onprevious empirical studies and findings about factors affecting price earnings ratio andalso according to the Gordon basic model, the major factors is selected. Independentvariable of research includes the growth rate of dividends, the coefficient of dividendspayments and systematic risk (beta). The sample includes 41 companies from thecompanies listed in Tehran Stock Exchange between 84 to 88 years. This study usespanel data and multiple regression analysis and Tested the hypothesis by E-viewssoftware. The results showed that the growth rate of dividends and the coefficient ofdividends payments have a positive impact on P/E ratio and beta with negative impacton the P/E ratio.