Investigating the Effects of Stable Profitability and Free Cash Flow on Stock Returns of Companies Listed in Tehran Stock Exchange

Vakilifard, Hamidreza; Shahmoradi, Nassim

doi:10.6007/ijarafms/v4-i3/977

Cited by 5 publications

(5 citation statements)

References 14 publications

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“…Suggesting that, since the management of the firm tends to distribute the free cash flow available to them as dividends to the shareholders; the investors will not need to increase the cost of monitoring on the management that controls free cash flow. This finding is also in line with the result of Vakilifard and Shahmoradi (2014), who reported a strong relationship between free cash flow and return on equity of firms quoted in Iran stock exchange.…”

Section: Resultssupporting

confidence: 91%

Testing the validity of free cash flow hypothesis: Evidence from Nigeria

2020

IJFAM

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Purpose: This study empirically tests the validity of the free cash flow hypothesis among firms quoted on the Nigerian Stock Exchange (NSE) from 2007 to 2017. Research methodology: The study employed a dynamic panel system Generalized Method of Moments (GMM) in analyzing the data generated. Results: the result failed to provide empirical evidence in support of the Jensen free cash flow hypothesis in Nigeria. The equally showed that a high concentration of shareholding in the hand of a few individual increases the amount of dividend paid out to shareholders. The result is however robust using different methods. Limitations: We focused only on testing the validity of the free cash flow hypothesis proposed by Jensen (1986). Contribution: The study provided empirical evidence that invalidates the propositions of the free cash flow hypothesis among publicly quoted firms in Nigeria. The result is robust using different estimation techniques.

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Section: Resultssupporting

confidence: 91%

Testing the validity of free cash flow hypothesis: Evidence from Nigeria

2020

IJFAM

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“…In recent decades, the issue of determining the fair price (Fair Price), which is derived from the intrinsic value of each commodity, has been raised as market efficiency and efficient market theory, and has been challenged under a variety of headings, including behavioral economics and behavioral finance. In fact, the increased depth of economic research employing other sciences such as psychology and sociology to eliminate additional economic assumptions and make them real has led to the emergence of new scientific subfields within the field of economics, such as behavioral finance and behavioral economics [1].…”

Section: Theoretical Foundationsmentioning

confidence: 99%

“…AU 4 : The ten-day period after crossing barriers in the upward mode. 1 Before downward 2 After downward 3 Before upward homogeneity will be denied, however, for the time periods 2009 to 2013 and 2017 to 2021, as determined by the goodness-of-fit test. The hypothesis of uniform data frequency is rejected during economic eras characterized by uncertainty and instability; as a result, the establishment of behavioral finance is strengthened.…”

Section: Research Hypothesesmentioning

confidence: 99%

Behavioral finance research of the Tehran Stock Exchange by mathematical round numbers in the Tehran Stock Exchange’s overall index

2023

RNA

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The formation of market interactions is directly affected by the decision-making of market players. This paper seeks to assess the presence of behavioral finance on the Iranian financial market as a factor influencing market participants' decisions. The current study evaluates the existence of behavioral finance on the Iranian capital market by focusing on the phenomena of "price clustering" in the total index of the Tehran Stock Exchange. It proposes a new criterion for identifying behavioral bias in the financial market. One of the reasons for the lack of uniformity in the distribution of data in the total index of Tehran securities is the propensity of individuals to make individual decisions based on the index of total securities of Tehran. People use the total index as a criterion for making decisions, and when the total index reaches round numbers, their purchasing and selling behavior changes. The results of the study validate the phenomena of price clustering in round numbers in Tehran's total stock index. In actuality, the lack of uniform distribution in the total index numbers of Tehran stock is an appropriate indicator of the existence of behavioral finance on the Tehran Stock Exchange. The main differentiating aspect of this study is the introduction of the overall index as a new measure compared to individual symbols for demonstrating behavioral bias in the financial market, which has been employed in previous studies.

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“…It is argued that the role of management accountants after ERP implementation has changed to focus on performance evaluation, data interpretation and other business consulting and analytics tasks (Hassan and Mouakket, 2018;Goumas et al, 2018;Vakilifard et al, 2014). ERP systems offer accurate and real-time information for better budgeting and forecasting (Gullkvist, 2013).…”

Section: S-erp Systems Supporting Lmmentioning

confidence: 99%

Integrating S-ERP systems and lean manufacturing practices to improve sustainability performance: an institutional theory perspective

Abobakr

Abdel-Kader

Elbayoumi

2022

JAEE

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PurposeThis paper aims to investigate the impact of integrating Sustainable Enterprise Resource Planning (S-ERP) systems and lean manufacturing (LM) practices on sustainability performance, especially in Egypt as an emerging country.Design/methodology/approachThe authors carried out an experimental study with a sample of 144 professional accountants of MPA, MBA and DBA students at two of the top universities in Egypt.FindingsThe results provide significant evidence that the integration of S-ERP systems and LM practices implementation improve sustainability performance. However, there is no significant evidence that S-ERP adoption contributes to the success of LM practices implementation.Research limitations/implicationsBecause of the chosen research approach, this study is limited to use of a laboratory experiment design. Empirical evidence based on quasi experiments on a field setting would add value to the current literature.Practical implicationsFindings provide practical insights for the manufacturing sector managers into the benefits of integrating S-ERP systems and LM practices for sustainability performance improvement (e.g. reducing cost and waste, increasing operational efficiency). For ERP vendors, findings highlight how ERP vendors introduce “enablers” that incorporate LM best practices into their ERP systems and also how those vendors conform to the software sustainability criteria in the design of ERP applications.Originality/valueContrary to previous studies that addressed the individual impact of S-ERP systems and LM practices on performance, this paper experimentally gives an indication of the impact of concurrent implementation of S-ERP and LM practices on sustainability performance, especially in developing countries.

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Investigating the Effects of Stable Profitability and Free Cash Flow on Stock Returns of Companies Listed in Tehran Stock Exchange

Abstract: Given economical conditions being dominated in Iran and recent changes in domestic industries

Cited by 5 publications

References 14 publications

Testing the validity of free cash flow hypothesis: Evidence from Nigeria

Testing the validity of free cash flow hypothesis: Evidence from Nigeria

Behavioral finance research of the Tehran Stock Exchange by mathematical round numbers in the Tehran Stock Exchange’s overall index

Integrating S-ERP systems and lean manufacturing practices to improve sustainability performance: an institutional theory perspective

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