The relationship between concentration, mark-up and stock returns (Case Study: Tehran Stock Exchange)

Subject Areas : Journal of Investment Knowledge

Mohammadnabi Shahiki tash ¹ , Ali darikandeh ² , Mohamad Rasoul Heshmati ³ , Seyed-Hasan Hosseini ⁴

1 - Faculty of accounting and management, School of Economics, University of Sistan and Baluchestan, Zahedan
2 - M.sc ofFinance management, The University of Sistan and Baluchestan, Zahedan, Iran
3 - M. A. Student Business Administration,Faculty of Economic and Administrative Sciences, Ferdowsi University of Mashhad
4 - 4Ph.D. candidate in Business Administration ,Human Resource Management ,Faculty of Administrative Sciences& Economics, University of Isfahan

Received: 2012-12-10 Accepted : 2013-05-05 Published : 2013-05-05

Keywords: concentration, mark-up, Stock Returns, active industries of Tehran St,

Abstract :

This paper reviews the relationship between concentrations, mark-up and stock returns in the active industry in the Tehran Stock Exchange.In other words, This research examine the effect of concentration and mark-up on stock returns in12industriesbased on two-digit ISIC code in the Tehran Stock Exchange during the2001 to2007.concentrationand mark-up respectively measured by the HHI and PCM index and Survey their effect on stock returns by using multiple regression analysis and panel data model with controlling systemic risk, size, ratio of book value to market value, price to earnings ratio and immediate liquidity. Estimation results of models showed that there is a significant relationship between concentration and mark-up with stock returns in the industry on the Tehran Stock Exchange. And this relationship is indirect linear that means when this indexes increased ,stock returns is decreased.