Investigating the Effect of Government Ownership on Return on Asset and Economic Value Added in Listed Companies of Tehran Stock Exchange (TSE)
Journal Title: International Journal of Empirical Finance - Year 2015, Vol 4, Issue 5
Abstract
Formerly, government economy was preferred to non-government economy. However, due to the occurrence of problems such as excessive bureaucracy, poor management system, the lack of a proper assessment system and work motivation, multiplicity of objectives, abuse of monopolies as well as inefficient supports, many countries resorted to private economy. This study aims at experimental assessment of the effect of government ownership on the stock return and economic value added in listed companies of Tehran Stock Exchange. The statistical population included listed companies of Tehran Stock Exchange from 2007-2013. Final sample comprised 1106 firm-year. In this study, return on assets (ROA), leverage, operating cash flow and firm size were used as control variables. To test hypotheses, stepwise linear regression was applied. The results indicated no significant correlation between stock return, economic value added and government ownership. The results also showed a significant and positive correlation between operating cash flow and ROA with stockreturn. But, no correlation was found between firm size and leverage with stock return. There was a positive and significant correlation between leverage and economic value added. However, no correlation of firm size, operating cash flow and ROA with economic value added was found.
Authors and Affiliations
Ali Taghavi Moghaddam, Sayeed Javad Habib Zadeh Baygi, Misam Vahediyan
Keywords
Related Articles
- EP ID EP27206
- DOI -
- Views 335
- Downloads 12
Banking Regulatory Framework in Ghana: “Strengths, Weakness, Opportunities and Threats”
The Ghanaian Financial sector in retrospect has gone through series of changes in its legislative instruments giving the sophisticated and innovative nature of contemporary banking. The modern practice further requires...
Determinants of Macedonian Banks Efficiency
The purpose of this paper is to determinate the influence of risk management on efficiency of Macedonian banks. A regression models have been created where technical, pure technical and scale efficiency estimates are u...
Zimbabwean Commercial Banks Liquidity and Its Determinants
The liquidity problems are bedeviling Zimbabwean commercial banks since the introduction of multicurrency system and this is impacting the economic development. After the 2003 to 2004 liquidity crisis, the central bank...
The Role of Basel Accords in Preventing the Banking System Failure
The Basel Accords are principles and recommendations on banking laws and regulations published by the Basel Committee on Banking Supervision (BCBS). This paper aims to examine the three accords of Basel Committee and t...
Alternative Beta Risk Estimators in Emerging Markets: The Case of Tunisia
In this paper, we use the sample selectivity model to estimate the systematic risk for Tunisian stocks. This approach is applied in the case of extreme thin trading where data are censored due to the presence of zero r...