Return on Assets Ratio and Its Relationship with Stock Prices of Companies in Tehran Stock Exchange

Accounting profit and its components, including information when deciding which individuals areconsidered. Investors are searching their own interests in favor of information. Accounting profit is asign that investors change the beliefs and behavior. Evidence has shown that Accounting profit a goodindicator of stock returns and expected future cash flows, but due to the limitations of conservatism andimportance in the determination of Accounting profit, some analysts concluded that the economic benefitof the Accounting profit better indicator of expected future cash flows. The aim of this study was toinvestigate the relationship between return on equity and stock prices in companies of Tehran StockExchange. In order to achieve the objectives of the study data 60 listed companies in the Tehran StockExchange over a period of 8 years (2005 to 2013). To investigate the relationships between variablesfrom the regression analysis is used. Based on our results, it can be concluded that the optimal ratio ofreturn on equity, stock prices in the stock market will be in good condition.

کلیدواژه ها:

Return On Assets Ratio ، Stock Prices ، Stock Exchange