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 303
- Downloads 12
Efficiency Analysis of Conventional vs. Islamic Microfinance: An Appraisal for Sustainability in Pakistan
Microfinance has emerged as an impressive tool for poverty alleviation in global developing economies of all of the continents. Critiques have questioned some of the features of conventional system of microfinance whic...
Performance of Islamic Banks across the World: An Empirical Analysis over the Period 2001-2008
Our study analyzes cost efficiency of Islamic and conventional banks drawing on a sample of 233 banks in 17 countries from Africa, Asia, Europe and Middle East, over the period 2001-2008. We found an efficiency score o...
Determinants of Capital Structure: An Age Wise Analysis from NonFinancial Sector of Pakistan
This study examines various determinants of capital structure in non-financial sector of Pakistan. Data are retrieved from the balance sheets, income statements and notes of 214 companies from non-financial sector in P...
Impact of Capital Structure on Profitability of Commercial Banks Listed on Karachi Stock Exchange
This study investigates the impact of capital structure on the profitability of Pakistan commercial banks listed on Karachi Stock Exchange (KSE) by applying fixed and random effects on panel data of 15 listed Commercia...
Research of Risk Measure for the CSI 300 Index Futures
The CSI 300 stock index futures are the first financial futures in China; it is also one of the effective hedging tools for investors in stock market. Effective management for risk of the CSI 300 stock index future mark...