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Accounting & Marketing

ISSN: 2168-9601

Open Access

Impact of Financial Performance and Growth Opportunities on Success or Failure of Companies: Evidence from Tehran Stock Exchange

Abstract

Chashmi NA and Fadaee M

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.

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