Predicting stock return by Using The market Ratios in Tehran stock exchange

Document Type : Original Article

Authors

10.22034/iaar.2014.104331

Abstract

The purpose of this research is to examine the impact of  financial ratios on predict of stock return. To determine the 4variable the financial ratios, earning per share, price to earning per share, price to sale per share, price to book value per share is used. The research method used in this study is post event semi-empirical design. 159 companies listed in Tehran Stock Exchange in the period 1386-1388 is reviewed. To test the hypothesis of multivariate regression models were used. Finding show that there is a meaningful relationship between the proportion of earning per share with predicted return of stock in 1386 -1388 and in 1386 there is a meaningful relationship between the proportion of price of each share to sale with predicted return of stock and in1387 and 1388 there is a meaningful relationship between the proportion of book value per share with predicted return of stock and in 1386 and 1387 there is a meaningful relationship between the proportion of price to earning per share  with predicted return of stock.

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