FINANCIAL KNOWLEDGE OF SECURITY ANALYSIS (FINANCIAL STUDIES)
Year:2011 | Volume:4 | Issue:10|Papers Count:9

In this paper, we have examined relation between financial leverage effect and dividend policy over a 7- period in 66 firms in Tehran Stock Exchange. We have found that there is no relation between financial leverage and dividend policy. But, there is a positive relation between firm size and operating cash flow with dividend policy in study sample. The results of this study show that in emerging markets such as Iranian capital market, we could not find any agency theory implications on dividend policy.

Economic performance assessment of companies has been always of interest for stakeholders. In addition to accounting based evaluation model, there is an economic model, which focuses on cash flows rather than profit. One of these models is the “cash recovery rate” based on which the economic rate of return can be estimated.In this article, the relationship between accounting measures of performance evaluation(Return On Assets, Return On Equity, Return on Sales) and value-based measures(Economic Value Added and Market Value Added) in relation to cash recovery rate, which is as proxy of economic performance of companies, has been investigated. As many as 60 sample companies between the periods of 1382 to 1386 have been selected.The achieved results from empirical tests indicate that the return on assets, return on equity, return on sales and market value added are positively and directly related to the cash recovery rate. They can be used as a reliable measure in the performance evaluation in spite of economic value added which lacks information content.

In this paper the factors influencing abnormal return on common stock will be addressed. Regarding capital increase in Tehran Security Stock Exchange the four independent factors potential efficacy abnormal return. The factors are as following capital to increase the market value of outstanding shares, volatility of daily returns, firm's size (in terms of market value of outstanding shares) and market cumulative return (MCR).This paper addresses factors influencing abnormal returns of common stocks, in regard to “capital increase” in Tehran Security Exchange. We identify and examine four factors potentially influencing abnormal return. These factors are: capital increase to market value of outstanding shares, volatility of daily returns, firm's size (in terms of market value of outstanding shares) and market cumulative return (MCR).Our sample consists of 96 capital increase in firms listed in Tehran Security Exchange between 1383 and 1386. To examine the effects of capital increase on abnormal return, we use an event study.Cumulative abnormal returns are calculated for two thirty-day windows before and after the event. We use a multi-variable regression to compare the results in these two windows.We find that capital increase cause “negative” abnormal returns. Among four independent variables, only volatility of daily returns influences abnormal returns.

Financial development effect growth through one of the most important channels, which has been a source of controversies. Some economist believe that financial development by increasing savings and investment makes the growth possible, others think that financial development increases the growth rate by its effects on allocation of resources and productivity. The aim of this paper is to test empirically the relationship between financial development and growth in some Middle East and North Africa by dynamic panel GMM for 12 countries in the sample. The result for the period of 1960-2006 shows that there is a negative effect of financial development on growth. This negative effect of financial weaknesses in financial systems and which countries in the sample have used for financial liberalization which has had a negative effect on investment through an inappropriate allocation of resources.

The aim of the study is to answer the following question: which of the predictive indicators used in this study is the best way for predicting stock price, and is considered as the higher credibility for predicting stock price in the Tehran stock exchange? For this reason it is used the methods of a simple moving average and Weighted moving average and exponential moving average for symbol periods of 30 days, 60 days and 90 days. And then predicted results are compared with the actual price, and finally, various methods have been evaluated by two different indexes consist of Mean Absolute Deviation (MAD) and Tracer Symbol (TS).The results show that the exponential moving average methods for thirty-days period is entitled the highest credibility for predicting stock price.

In economic theory, there is no more important proposition than that, under competition, the rate of return on investment tends toward equality in all industries’.Although this notion is applicable to total profitability measures such as return on assets (ROA), there is good reason to believe that various components of ROA identified by Dupont analysis will not revert to economy-wide levels, Industries have unique operating structures that Dupont analysis decomposes return on investment such as ROA into two multiplicative components, Profit margin (PM) and Asset turnover (ATO). This analysis is useful because each component measures different aspects of a firm’s operation. Advocate of this type of analysis claim that the components of ROA should provide additional insight into the business and operations of the firm and assist in forecasting.In this paper I examined whether Industry part of profit margin, Asset turnover and return on assets and Industry adjusted values of these variables (called abnormal) can predict future values (changes) of these variables, I found that decomposing each of these components into an abnormal and Industry component is useful for predicting also I found that profit margin and Asset turnover has a negative correlation with each other and the same is true with, their abnormal, (Industry-adjusted). In this paper pooled regression is used in predicting ROA, PM, and ATO of Industries and their Industry-adjusted values. Result showed that the regression equation is informative and significant. and provides enough information for decision making.

Today, the commercial agencies encounter to a lot of problems in order to reach their aims such as shareholder wealth and profit maximization and also company shares value in crease qiven to qlobalization cateqory. Amonq these problems, there is the inflation and liquidity that these two case have much importance qiven to beinq public the control system of many agencies, especially in our country, and the majority of industries and agencies are affected by increase and decline. There fore, the above said cases inecessitate that the commercial agencies (Melat Bank) plan as if thay have high flexibility and can have more compalibility with the environmental sitwations. This research is considered as the type of applied research and the used method in this research is from reqression analysis and correlation type qiven to in this research , the effect of independence variables on dependence variable have been measured.At performiny This research , the part of information that consists The research basis has been prepared by library method and stading books , publications and articles and maqazines and other part of information that is related to collect the desired data for testing and analysing has been prepared by field method and reference to Islamic Repablic of Iran central bank and bank financial department. The current research has been performed at Islamic Repablic of Iran Mellat Bank at time period 2005-2010That the discussed data at it has been collected and analysed monthly from march 2005 to april 2010. In this respect, four hypotheses were explained first hypothesis – there is a meaning ful relationship between liquidity management with Mellat Bank, s profitability. Second hypothesis – there is a meaning ful relationship between capital hold with Mellat Bank, s profitability. Third hypothesis – there is a meaning ful relationship between damestic gross production with Mellat Bank, s profitability. Forth hypothesis – there is a meaning ful relationship between inflation with Mellat Bank, s profitability.

Based on theoretical models and research results there is a significant positive effect between quality and cost accounting. In this study the relationship between cost of equity and six earnings quality was evaluated. Six dimensions of quality include the quality of accruals-based accounting data, variability of earnings, accruals optional, common factors, the ability to forecast revenue and profit is being paved. Hypothesis testing showed that generally the least desirable for companies with profits of companies in the desired maximum value, the cost of equity are higher.The other four indicators of interest "accruals quality" is the highest impact on equity. In addition, the explanatory power of ROE model contains six parameters of interest, more ROE is the explanatory power of models that have used only one indicator of the quality.Thus, the benefits of quality had a significant negative correlation with the cost of equity. The results of this research could benefit from looking at the importance and quality of place to remind investors and other stakeholders.

This study examines relationship between disclosure quality and stock liquidity in Tehran stock exchange. We use a sample of 72 listed companies over a five-year (1383-1387). Results in other countries show that improving disclosure quality decreases information asymmetry. So stock liquidity increases to decline information asymmetry. The focal point of our study is improving disclosure quality resulting in more stock liquidity. The multivariate pooled regression model is used to examine the hypotheses. However, we do not find any significant association between disclosure quality and stock liquidity.