The study of the ability of financial and profitability value index in explanation of Firms stock return in Tehran stock exchange

Subject Areas : Financial Knowledge of Securities Analysis

صابر جلیلی ¹ ( مسئول مکاتبات )
علی اکبر نونهال نهر ² ( ندارد )
نوید خالقی ³ ( ندارد )

Received: 2011-08-01 Accepted : 2012-02-04 Published : 2012-09-10

Keywords: Profitability, scientific circles and investo,

Abstract :

Studying behavior of securities and financial assets has always received significantattentions from scientific circles and investors. Financial and profitability value indexincluding economic value added has been the focus of financial management andmanagement accounting. Using these criteria one can accurately predict stock returnof the company and can avoid criticism on accounting income. Therfore financial andprofitability value index, has a signisifant import for investors. In this regard thisproject investigates information content, explanation ability and correlation intensityof financial and profit ability value index with firms stock returns. Computingcollected data, firm and year, ninety accepted firms in Tehran stock exchange wasinvestigated for seven years. This study is an experiential and it’s purpose isapplication research type. Research hypotheses using correlation coefficient, multiplyregression, F Fisher and T-test were investigated. Using Stata and Excell soft warsrequired computation was done. The results show that among of independentvariables there is meaningful relationship just between economic value added and netincome with stock return. Other independent variables such as market value added,cash value added, asset return and equity return have meaningful relationship withstock return, but this relationship is not as much as that of economic value added.