A Study of the Relationship between Change in Productivity indices and Change in Financial Variables among Accepted Companies in Tehran Stock Market

Subject Areas : Industrial Management

Farhad Shahvaise ¹ , Peyman Akbari ² , Mehrdad Ghanbari ³

1 - Members of academic staff of Islamic Azad University, Kermanshah Branch
2 - M.A in Commercial Management, Young Researchers Club, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran
3 - Ph.D. student of accounting, faculty members of Islamic Azad University, Kermanshah branch

Received: 2018-01-10 Accepted : 2018-01-10 Published : 2012-05-21

Keywords:

Abstract :

Productivity is one of the most important objectives of organizations and institutes in the recent world. Increasing the productivity level can guarantee the stage development of the organization in the competitive market. Productivity as a prominent index determines accurately the efficiency of labor power, investment and other resources of an organization. It also shows a clear situation of the company in the future.  A company can achieve sustainable profits in the future if it does not ignore the productivity issue. The aim of this study is to determine if there is any significant relationship between Change in Productivity indices (labor and capital productivity) as independent variables and change in financial variables (profit of each portfolio, Book value of the portfolio, Market portfolio value) as dependent variables. To do so, 102 companies accepted in Tehran Stock Market were selected based on screening (systematic deletion) in a five-year period between 2004-2009. The required data were gathered from the basic financial statement, committee reports, and other available documents in Tehran Stock Market. Step by step regression and Pearson correlation were used to analyze the data. The results of the study revealed that there is a significant relationship between the variables.