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Paper Information

Journal:   JOURNAL OF ASSET MANAGEMENT AND FINANCING   WINTER 2016 , Volume 3 , Number 4 (11) ; Page(s) 51 To 65.
 
Paper: 

INVESTIGATING THE NON-LINEAR RELATIONSHIP BETWEEN GROWTH AND PROFITABILITY OF THE COMPANIES LISTED IN TEHRAN STOCK EXCHANGE

 
 
Author(s):  SETAYESH MOHAMMAD HOSAIN*, MOMTAZIAN ALIREZA, BEHPOUR SAJAD
 
* DEPARTMENT OF ACCOUNTING, UNIVERSITY OF SHIRAZ, IRAN
 
Abstract: 

The goal of present research is to investigating the nonlinear relationship between growth and profitability of the companies listed in Tehran Stock Exchange (TSE). In this regard, the effects of firm size, financial leverage and liquidity ratio have been controlled. The sample of present study consists of 173 listed companies of Tehran Stock Exchange during 2003 to 2011. First, after examining the literatures, which has confirmed the nonlinear relationship between growth and corporate profitability, this study attempted to assess the reliability of data using Levin, Lin and Chow Test, and then nonlinear relationship is estimated using Eviews software. Results express that there is a significant nonlinear relationship between growth and corporate profitability such that coincided with the growth of the company, its profitability increases. However this relationship has a threshold, and from that point onwards, with the increase of the company grows in any amount, its profitability will decrease.

 
Keyword(s): FIRM GROWTH, FIRM PROFITABILITY, TEHRAN STOCK EXCHANGE
 
References: 
  • ندارد
 
  Persian Abstract Yearly Visit 73
 
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