A study on relationship between inflation rate and changes in profitability ratios in Tehran Stock Exchange

Abstract

In this paper, we examine the relationship between inflation rate and profitability ratios in the top 36 companies in the Tehran Stock Exchange (TSE). The study uses historical data over the period 2005-2010 and using linear regression methods examines different hypotheses. The main idea of the proposed hypotheses is that there is a significant relationship between the inflation rate and profitability ratios, and the results confirm the significant relationship between the inflation rate and profitability ratios such as return on assets (ROA) ratio, return on equity (ROE) ratio, gross profit (GPR) as well as net profit ratio (NPR). There is no significant correlation, however, between these two variables in past and future periods

Analysis of the Performance of Courier Companies in Selected Listed Counters in Malaysia

“…This finding indicates that the analysed courier companies have utilised all of their assets to earn substantial profits. The same results have also found out that LQR, LEV, and INF have a positive relationship with ROA as discovered by Bolek (2013), Ondigi and Willy (2016), Saripalle (2018), Boadi et al (2013), Vuković et al (2020), and Aghaee and Kazempour (2013). Findings by Jureviciene and Doftartaite (2013), and Rauličkis and Jurevičienė (2018), on the other hand, assert the opposite results of a negatively significant coefficient of UER.…”

“…In addition, governments need to increase equitable gross domestic products and maintain exchange-rate stability and inflation. However, Aghaee and Kazempour (2013) have stood on their opinions that there is a positively significant relationship between inflation and net income because market volatility is affected by inflation.…”