Abstract

The objective of this research is the relationship examination of selected standards of performance (sale, operating income, net income etc.) and return of companies as the representative of their performance in explaining companies return. Therefore, 166 companies listed on the Tehran Stock Exchange were tested from 2007 to 2011 in order to examine this issue. In this research, the adjusted coefficient of determination of regression models through panel data was used to test the hypotheses. Furthermore, the value relevance of selected standards of performance was examined in order to determine that which of the standards could best explain annual return. The result of this examination indicates that there is a significant relationship between selected standards of performance and return.

Keywords: Capital Market, Stock Return, Value Relevance, Performance.

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