The Relation between Average of Stock Return, Firm Size, Earning and Cash Flow Volatilities Cycle

Subject Areas :

فریدون رهنمای رود پشتی ^{1 *} , هاشم نیکو مرام ²

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Accepted : 2015-05-08 Published : 2013-08-23

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Abstract :

Stock return, firm size, earning volatility and cash flow volatility, are important variables in financial and accounting issues, which considering them can improve the quality of decisions. Therefore, this research study whether stock return in firms with smoother earning significantly different firms with smoother cash flows. On the other hand, this research tests the same question, with the firm size instead of stock return. Statistical population includes firms listed in Tehran Stock Exchange(TSE), which based on considered conditions, 50 firms have been ed during 1999-2008. T-test has been applied for hypothesizes test. Results indicate that, there is no difference between average return of two groups of firms that categorized according earning and cash flow volatilities cycle, but there isn’t difference between firm size in the two groups of firms.