A Study of the Capital Raising Effect on the Forms Profitability Ratios

Subject Areas : Futurology

ابراهیم  Abbasi ¹ (ندارد)

Received: 2015-02-21 Accepted : 2015-02-21 Published : 2001-06-22

Keywords: Capital raising, Stock right, EPS, DPS, ROA, ROE,

Abstract :

Capital raising by common stock issue and its sale to the firm’s stockholders is one of the financing method in Tehran stock Exchange. In the prospectus subscription, one of the reasons of the capital raising is announced as the investment expenditures financing and the firm’s growth. Financial theories have stated information content of the capital raising in the form of the information release hypothesis, information asymmetry, free cash flow hypothesis and the signaling hypothesis. In this research the financing ratios (DPS, EDS, ROA , ROE)of Tehran stock Exchange firms is compared and studied in both experimental and control groups before and after the dicision for the new stock publishing.