ISSN 2736-1721
Global Journal of Business Management ISSN 6731-4538 Vol. 8 (5), pp. 001-008, May, 2014. © International Scholars Journals
Full Length Research Paper
A study of the relationship between the share and criterion of companies’ performance using profit and cash flows: Some Iranian evidence
Mahdi Salehi1*, Maryam Alavian Ghavanini2 and Mahmoud Hematfar3
1Islamic Azad University, Takestan Branch, Iran.
2Islamic Azad University, Science and Research Branch, Tehran, Iran.
3Islamic Azad University, Boroujerd Branch, Iran.
Accepted 26 December, 2013
Abstract
The aim of the current study is to present a relationship between share yield and criterion of companies’ performance using profit and cash flows and items of listed companies on Tehran Stock Exchange during 2004 to 2009. Results show that, there is no meaningful relationship between independent variables such as gross profit, operational profit, profit before tax, net profit and operational cash flow, while cash flow does not exist for free items in the independent variable known as share yield.
Key words: Profit, operational cash flow, free cash flow, share yield, performance criterion, capital market.