Impact of Financial Performance and Growth Opportunities on Success or Failure of Companies: Evidence from Tehran Stock Exchange
Chashmi NA* and Fadaee M
Department of Accounting, Science and Research Branch, Islamic Azad University, Mazandaran, Iran
- *Corresponding Author:
- Chashmi NA
Department of Accounting
Science and Research Branch
Islamic Azad University
Tel: +98 21 4486 5179
E-mail: [email protected]
Received Date: March 02, 2016 Accepted Date: March 24, 2016 Published Date: March 29, 2016
Citation: Chashmi NA, Fadaee M (2016) Impact of Financial Performance and Growth Opportunities on Success or Failure of Companies: Evidence from Tehran Stock Exchange. J Account Mark 5:166. doi:10.4172/2168-9601.1000166
Copyright: © 2016 Chashmi NA, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
In this study, has been investigated the impact of the financial performance and growth opportunities on success or failure of listed companies in The Tehran Stock Exchange. Measures of financial performance (including earnings per share, return on equity rate, and return on assets rate), also growth opportunities as the independent variables and success or failure as the dependent variable are considered. The main idea to formulate the hypothesis is that there is a significant relationship between the measures of discussed financial performance and growth opportunities and success or failure. Studied sample includes 115 listed companies in The Tehran Stock Exchange during the 7-years period (2006-2012). In order to analyze the data, were used Pearson correlation coefficient and multiple regressions. The results showed that there is significant relationship between earnings per share (EPS) and the rate of return on assets (ROA) with success or failure, but there is no significant relationship between rate of return on equity (ROE) and success or failure, and there is no significant relationship between growth opportunities and success or failure.