Study the Relationship between the Percentage of Free Float Exchange with the P / E Ratio in the Firms Listed In Tehran Stock Exchange

Journal Title: Journal of Science and today’s world - Year 2015, Vol 4, Issue 2

Abstract

Making rational decisions by investors in Tehran Stock Exchange is available through raising public awareness and clearing out any actions available in the market. The aim of this study is to answer the question whether the lack of restrictions on floating shares removes the problems of the companies listed in Tehran Stock Exchange in determining the proper P/E ratio that is expected by investors. The answers to these questions help investors to find out whether releasing of free float share improve performance of listed companies in Tehran Stock Exchange, and subsequently absorbing their capital (due to the competitive stock markets in emerging markets of Iran) by the market, or not. In this study, the P/E ratio was used to assess the percentage of free float. For this purpose, the data of the companies listed in Tehran Stock Exchange, during the years 2008 to 2012 were studied. The analysis of the Hypotheses was done using Spearman correlation test. The findings indicate that there is not statistically significant relationship between the percentage of free float and the P/E ratio.

Authors and Affiliations

Puneh Farnia, Mohammad Hassan Janani

Keywords

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  • EP ID EP29528
  • DOI -
  • Views 316
  • Downloads 3

How To Cite

Puneh Farnia, Mohammad Hassan Janani (2015). Study the Relationship between the Percentage of Free Float Exchange with the P / E Ratio in the Firms Listed In Tehran Stock Exchange. Journal of Science and today’s world, 4(2), -. https://europub.co.uk/articles/-A-29528