Investigating the Effect of Internal Rate of Return on Cash Re-cycling on the Abnormal Returns of Companies Accepted in Tehran Stock Exchange
محورهای موضوعی : Financial Mathematics
Bahareh Mohammadtalebi
1
(Islamic Azad University Arak Branch)
Mitra Mohammad talebi
2
(Department of accounting, Arak Branch, Islamic Azad University, Arak ,Iran)
Mohammad Jahangiri
3
(Deputy Director of Education, Research and Planning, General Directorate of Technical and Professional Training in Markazi Province)
Mahtab Eshghiaraghi
4
(Department of Executive Management, Arak Branch, Islamic Azad University, Arak, Iran)
کلید واژه: Internal Return, Abnormal Returns, Leadership Strategy,
چکیده مقاله :
Return on investment is a driving force that motivates and is a reward for investors. Investment returns are important for investors, in order for the entire investment game to be realized. Evaluating efficiency is the only logical way (Before risk assessment) that investors can do to compare alternative and different investments. Measuring real returns (relative to the past) is needed to better understand investment performance. Particularly, the study of past returns has a major role in predicting and predicting future returns. Therefore, the present study seeks to "investigate the effect of the internal rate of return on cash recycling on unusual returns as well as the effect of cost leadership strategies variables on the relationship between the internal rate of return on cash recycle and the unusual returns in the period from 2009 to 2013. In this research, the sample consists of 72 companies that have been selected by systematic elimination method, which is a total of 360 years. In this research, linear regression and correlation coefficient were used to investigate the hypotheses of the research. EVIEWS software has been used to analyse the data and test the research hypotheses. According to the regression results, the following results were obtained: 1. An internal rate of return on cash recycling affects unusual returns. 2. The internal rate of return based on the recycling of cash The abnormal returns affect the strategy of cost leadership.
[1] Aboody, D., Hughes, J. and Liu, J., Measuring value relevance in a (possibly) inefficient market, Journal of Accounting Research, 2002, 40(4), P. 965-986.
[2] Barth, M.E., Cram, D. and Nelson, K., Accruals and the prediction of future cash flows, The Accounting Review,2014,74(6), P. 27-58.
[3] Beaver, W, Financial Reporting: An Accounting Revolution, Prentice-Hall, Englewood Cliffs, NJ.2013.
[4] Bernard, V.L., Accounting-based valuation methods, determinants of market-to-book ratios, and implications for financial statement analysis, working paper, University of Michigan, Ann Arbour, MI.2015.
[5] Chung, K., Ghicas, D. and Pastena, V, Lender’s use of accounting information in the oil and gas industry, The Accounting Review, 2016,6(8), P. 885-895.
[6] Dechow, P.M, Accounting earnings and cash flows as measures of firm performance: the role of accounting accruals, Journal of Accounting and Economics, 2013, 18(1), P. 3-42.
[7] DeFond, M.L. and Hung, M, An empirical analysis of analysts’ cash flow forecasts, Journal of Accounting and Economics, 2010, 35(2), P.73-100.
[8] Gordon, L.A. and Hamer, M.M., Rates of return and cash flow profiles: an extension, The Accounting Review, 1988, 63(3), P. 514-521.
[9] Griner, E.H. and Stark, A.W. ,Cash recovery rates, accounting rates of return and the estimation of
economic performance, Journal of Accounting and Public Policy,1988, 7(4), P. 293-312.
[10] Griner, E.H. and Stark, A.W., On the properties of measurement error in cash recovery rate based estimates of economic performance, Journal of Accounting and Public Policy, 2009.
[11] Ijiri, Y., Cash-flow accounting and its structure, Journal of Accounting, Auditing and Finance,1987, 1(4), P. 341-348.
[12] Ijiri, Y., Convergence of cash recovery rate, in Ijiri, Y. and Whinston, A. (Eds), Quantitative Planning and Control, Academic Press, New York, NY,2011, P. 259-267.
[13] Jacobson, R, The validity of ROI as a measure of business performance, American Economic Review, 2015,77 (3), P. 470-478.
[14] Jennings, R., A note on interpreting incremental information content, The Accounting Review,2014, 6(5) P. 925-932.
[15] Landsman, W.R. and Shapiro, A.C, Tobin’s Q and the relation between accounting ROI and economic return, Journal of Accounting, Auditing and Finance,1995, 10(1), P. 103-120.
[16] Lee, T. A., and A. W. Stark. Ijiri's cash flow accounting and capital budgeting. Accounting and Business Research, 1987, 17(66), P. 125-131.
[17] Salamon, G.L., On the validity of accounting rates of return in cross section analysis: theory, evidence, and implications, Journal of Accounting and Public Policy,1988, 7(4), P. 267-292.
[18] Stauffer, T.R., The measurement of corporate rates of return: a generalized formulation, Bell Journal of Economics and Management Science,2007, 2(2), P. 434-469.
[19] Steiger, J.H, Tests for comparing elements of a correlation matrix, Psychological Bulletin, 2015,87(3), P. 245-251.
[20] Subramanyam, K.R. and Venkatachalam, M., Earnings, cash flows, and ex post intrinsic value of equity, The Accounting Review,2016, 82(2), P. 457-481.
[21] Wernerfelt, B. and Montgomery, C.A., Tobin’s Q and the importance of focus in firm performance, American Economic Review,1988, 78(1), P. 246-250.
