Open AccessTHE RELATIONSHIP BETWEEN INCOME SMOOTHING AND INVESTMENT EFFICIENCY WITH COMPANIES’ VALUE
Author(s) -
Mahdi Salehi,
Fatemah Gholami
Publication year - 2016
Publication title -
zbornik radova ekonomskog fakulteta u istočnom sarajevu
Language(s) - English
Resource type - Journals
eISSN - 1986-6690
pISSN - 1840-3557
DOI - 10.7251/zrefis1511027s
Subject(s) - investment (military) , stock exchange , sample (material) , value (mathematics) , business , return on investment , smoothing , stock (firearms) , comprehensive income , regression analysis , econometrics , economics , finance , statistics , microeconomics , public economics , gross income , production (economics) , mathematics , geography , chemistry , chromatography , state income tax , tax reform , politics , political science , law , archaeology
The main objective of this study is to examine the relationship of income smoothing and investment efficiency with the value of the companies listed on the Tehran Stock Exchange. For this purpose, the companies’ information was analyzed for a financial period from 2008 to 2012 and the statistical sample of the research includes those companies of which the fiscal year ends on March 20th. Suitable statistical tests including regression analysis and the data were analyzed with the help of SPSS software used for collecting data regarding investment for testing hypotheses. Generally, the findings indicated that the value of the income smoother companies was higher than income non-smoother companies’. Additionally, the value of companies with investment efficiency was higher than the value of companies without investment efficiency. Furthermore, the results showed that the value of income smoother companies with investment efficiency was higher than the value of income non-smoother companies with investment efficiency.