The Relationship between Changes in the Financial Leverage and the Values of the Tehran Listed Firms

Damouri, D; Khanagha, Jamal Barzegari; Kaffash, Mahin

doi:10.6007/ijarafms/v3-i3/130

Cited by 6 publications

(4 citation statements)

References 16 publications

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“…The result of the study conducted by Adenugba, Ige and Keshinro (2016) revealed that financial leverage significantly and positively affects market capitalization of Nigerian listed firms as obtained by Adeyemi and Oboh (2011), Collins et al (2012) in the same context. Similar findings were reported by Black (2001), Cheng and Tzeng (2010), Damouri et al (2013), Gompers et al (2003), Gill et al (2011). Johannes and Dhanraj (2007) and Sharma (2006) reported same result, using Indian manufacturing firms.…”

Section: Empirical Reviewsupporting

confidence: 81%

Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Oyeyemi¹,

Enyi²,

Emmanuel³

2019

Afr. J. Bus. Manage.

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The attainment of going concern concept of an entity relies heavily on its ability to maximize the wealth of its shareholders and value. The prospect of a firm to investors is a function of return, which signals to the market its good governance. The study examined the influence of shareholders' return on the value of manufacturing firms listed on Nigerian Stock Exchange using annual reports and accounts of 36 selected firms for a period of twenty years, between 2007 and 2016 (720 firm year observations). The results of the multivariate regression analysis (fixed effect) revealed that past dividend, agency cost, debt-equity ratio, and size have significant positive effect on market capitalization of listed manufacturing firms in Nigeria; while earnings per share and sales growth have insignificant negative influence on value of a firm though, the magnitude is immaterial. The study concluded that managers should look beyond the signaling effect of dividend, but place the interests of the key stakeholders (shareholders, management, employees, and loan holders) as well as the growth and expansion of the business at the centre of their decision-making. Especially on the proportion of earnings to be paid as dividend and the nature of dividend policy to be adopted to enhance its value.

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Section: Empirical Reviewsupporting

confidence: 81%

Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Oyeyemi¹,

Enyi²,

Emmanuel³

2019

Afr. J. Bus. Manage.

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“…According to the Irom et al [37], there is a signifcant relationship between debt, total assets, and total equity of the company. Te result of Damouri et al's study [38] shows that leverage of the company will negatively afect the investment decision of the company. Furthermore, they also argue that a high debt ratio indicates that the frm will invest less in capital assets.…”

Section: Studies On Overfow Efect Of Covid-19 Pandemic Onmentioning

confidence: 99%

Overflow Effect of COVID-19 Pandemic on Stock Market Performance: A Study Based on Growing Economy

Qadri

Raza²,

Qadri

et al. 2023

Discrete Dynamics in Nature and Society

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Purpose. The purpose of this study is to evaluate the effect that COVID-19 has on the performance of the stock market in emerging economies. The findings as a whole demonstrate that the stock market does not react significantly. We believe that the outcomes of this study provide knowledge that is useful for decision makers in financial markets and policy all around the globe. Methods. Data for 140 companies are obtained from the official websites of the companies listed on the Pakistan Stock Exchange. The Wilcoxon signed-rank test was used to determine whether there was a significant difference before and after the pandemic era. In addition, the ARDL model was chosen because of the variable integration mix (order 0 and 1). Implications. Theoretically, it added to the information that was already available about the implications of the COVID-19 pandemic on the performance of stock markets in emerging economies. In a purely practical way, it will help those in charge of making policies come up with plans to deal with things that cannot be predicted. Results. The findings of the analysis demonstrate that the COVID-19 pandemic has caused a 52.85% reduction in the volatility of Pakistan’s net profit returns. The study shows a statistically insignificant negative association between the COVID-19 pandemic and Pakistan’s stock returns. The empirical results of ARDL models provide the first conclusion of the analysis, indicating that the number of long-term connections was greater than short-term connections. Conclusion. According to the findings of the research, the pandemic caused by COVID-19 has a bigger impact on the financial performance of enterprises (both positively and negatively). Some companies are able to maintain their place in the market even if the bulk of the firms see their performance suffer during a pandemic. Originality. We are the first to use the ARDL model to evaluate the effect of the new COVID-19 pandemic on a stock market in a developing nation.

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“…Although Tally (2014) has suggested that increased leverage results in increased return and risk. Hence, the effect of firms leverage in maximizing the return of equity or shareholders is based on the assumptions that the fixed-charges funds such as the loan and debentures can be obtained at a cost lower than the firm's rate of return on net assets (Damouri, Khanagha and Kaffash, 2013). In comparing the 3 estimation models for financial (ROA, ROE and ROS) in the study, the result was mostly not consistent, but the Akaike info criteria suggested that the return on assets is a better measure of financial performance.…”

Section: Summary and Implication Of Findingsmentioning

confidence: 99%

The Relationship among Cash Flow, Firms’ Size and Financial Performance of Food and Beverage Companies Listed on the Nigerian Stock Exchange (NSE)

Owolabi¹

2022

ijird

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IntroductionFinancial performance is fundamental in business world; it is one of the required tools of business management (Francoise, Gerald and Mansi, 2005). Performance can also be used as a measure to control organizational growth and development. The performance of an organization unfolds the level of improvement made by a company or firm within a period of time that is, financial performance serves as an instrument that measures the success of a company. Financial performance is often used as a benchmark for investors to invest their funds in a firm or company which is of requisite importance for investors, stakeholders and economy at large. According to Mirza and Javed (2013), for investors, the return on their investment is highly valuable, and a well-performing business can bring high and long-term return for their investors. Moreover, financial performance of a company will improve the income of its employees, bring better quality

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The Relationship between Changes in the Financial Leverage and the Values of the Tehran Listed Firms

Cited by 6 publications

References 16 publications

Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Overflow Effect of COVID-19 Pandemic on Stock Market Performance: A Study Based on Growing Economy

The Relationship among Cash Flow, Firms’ Size and Financial Performance of Food and Beverage Companies Listed on the Nigerian Stock Exchange (NSE)

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