The Evaluation Of The Relationship Between Price-To-Book Ratio And Accounting Variables
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 6, Issue 10
Abstract
The primary purpose of this research is introduction criterion that it can show created value for stockholders. This criterion is price- to- book ratio, one of ratios related to market value. For proof this matter ( subject) we evaluate and analysis relationship between price- to – book with accounting variables in Tehran Stock Exchange (TSE). In this research we use of price- to- book as dependent variable and liquidity ratio, leverage ratio, return on equity, assets efficiency, cost control and dividend as independent variable. The main point of presented hypothesis is that price- to- book has significant relationship with independent variables. In this study, we use the data of 56 companies for a period of 2005-2009. For hypothesis testing correlation method are used. The results show that price- to- book hasn’t significant positive relationship with profitability but it has significant positive relationship with other variables. So hypothesis presented in this research confirmed. Results show that price- to- book is suitable criterion for measuring created value for stockholder.
Authors and Affiliations
Hamid Moridipour| Department of Accounting ,Andimeshk Branch , Islamic Azad University , Andimeshk, Iran, email: Hamidmoridi@yahoo.com, Zahra Farrahipour| Department of Accounting ,Andimeshk Branch , Islamic Azad University , Andimeshk , Iran
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