Determinants of real stock return of pharmaceutical products and materials companies
Social Determinants of Health,
Vol. 9 (2023),
1 January 2023
,
Page 1-12
https://doi.org/10.22037/sdh.v9i1.39590
Abstract
Background: The present study aimed to investigate the factors that determine the actual efficiency of pharmaceutical companies.
Methods: This study was an applied and descriptive-correlation research. Using the financial information of 28 pharmaceutical materials and products companies of Tehran Stock Exchange during 2013-2016, modeling of multiple variables on the real returns of pharmaceutical companies was performed. Data entered to excel and were calculated and the relationship between independent and dependent variables was analyzed by performing multiple regression tests in Eviews software.
Results: There is a significance association between company size and real stock returns, but there was no relationship between assets and real stock returns and between equity returns and real stock returns. Between financial leverage and real stock returns, between price-to-earnings ratio and real stock returns; a significance association was observed between the ratio of book value to the market and the real stock return, and between the margin profit and the real stock return.
Conclusion: Considering the importance of the factors determining the real return of pharmaceutical products and materials companies, it is expected that the financial characteristics of pharmaceutical companies and Stock returns on the Tehran Stock Exchange should be used by planners as a guide for investors in Tehran Stock Exchange.
- Costs and Cost Analysis
- Economics
- Marketing
- Pharmaceutical Preparations
How to Cite
References
Malekipour Gharbi M. Analytical study of the use of financial leverage in the profitability of companies on the Tehran Stock Exchange. Master Thesis in Accounting, Shahid Beheshti University;2017.
Mehrani S, Mehrani K. Study of the relationship between profitability ratios and stock returns. Accounting and Auditing Review. 2003;10(3):93-105. https://acctgrev.ut.ac.ir/article_10446.html?lang=en
Fama EF, French KR. Size, value, and momentum in international stock returns. Journal of Financial Economics. 2012;105(3):457-472. https://doi.org/10.1016/j.jfineco.2012.05.011
Ahmadpour A, Rahmani Firouzjaei M. Study of the effect of company size and the ratio of book value to market value on stock returns. Journal of Economic Research (Tahghighat- E- Eghtesadi). 2007;42(2):9-19. https://doi.org/20.1001.1.00398969.1386.42.2.2.4
Namazi M, Shoushtarian Z. A Review of Tests on the weak form of Efficient Market Hypothesis. Financial Research Journal. 1996;3(11):62-109. https://doi.org/20.1001.1.10248153.1375.3.11.6.5
Chaharmahali A, Zahedi J, Mohammadi R. The Role of Market Capitalization in the Relationship Between ROA, ROE and Stock Prices in Tehran Stock Exchange. Journal of Asset Management and Financing. 2019;7(4):17-30. https://doi.org/10.22108/amf.2019.103686.1094
Rosenberg B, Reid K, Lanstein R. Persuasive Evidence of Market Inefficiency. Journal of Portfolio Management. 1985;11(1):9-17. http://dx.doi.org/10.3905/jpm.1985.409007
Basu S. The relationship between earnings' yield, market value and return for NYSE common stocks: Further evidence. Journal of Financial Economics. 1983;12(1):129-156. https://doi.org/10.1016/0304-405X(83)90031-4
Chan LKC, Lakonishok J. Are the reports of beta's death premature.? Journal of Portfolio Management. 1993;19(4):51-62. https://www.proquest.com/docview/195582355
Asgarnezhad Nouri B. Factors Affecting Stock Return of Firms Listed in Tehran Stock Exchange: Meta-analysis Approach. Journal of Asset Management and Financing, 2018;6(1):29-50. https://doi.org/10.22108/amf.2017.21193
Ahmadzadeh Suraki S. Study of the relationship between company size, book value to market price ratio, profit to price ratio with stock returns on the Tehran Stock Exchange. Master Thesis, Central Tehran Branch;2021.
Foroughi D, Mazaheri M. Study of the effect of leverage and financial distress risk on the real stock returns of companies listed on the Tehran Stock Exchange. Journal of Financial Accounting. 2013;5(8):46-61. https://qfaj.mobarakeh.iau.ir/article-1-180-fa.html
Hashemi S, Behzadfar F. The Evaluation of the Relationship Between the Informational Content of Accruals and Selected Financial Ratios with Stock Price of Listed Companies in Tehran Stock Exchange. Journal of Financial Accounting Research. 2011;3(1):55-76. https://far.ui.ac.ir/article_16903.html
Baqerzadeh M. Financial Management 1 (10th edition), Tehran: Payame Noor University;2005.
Dehghani Ashkazari F. Relationship between information asymmetry and the relative gap between real returns and expected returns of companies. Master Thesis, University of Science and Art;2019.
Rai R, Pouyanfar A. Advanced Investment Management. Samat Publications, Tehran: Sarman Study and compilation of academic books;2012.
Douglas Moses O. Income Smoothing and Incentives: Empirical Tests Using Accounting Changes. The Accounting Review. 1987;62(2):358-377. https://www.jstor.org/stable/247931
Dinarvand R. New National Drug Policy in Iran leading to Expanded Pharma ceutical Market and Extended Access of Public to Medicines. Iran J Public Health. 2009;38(1):158-161. https://ijph.tums.ac.ir/index.php/ijph/article/view/2876
Daniel K, Hirshleifer D, David A, Subrahmanyam A. Investor Psychology and Security Market Under and Overreactions. Journal of Finance. 1998;53(6):1839-1885. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3181607
Bhandari L. Debt/Equity Ratio and Expected Common Stock Returns: Empirical Evidence. Journal of Finance. 1988;43(2):507-528. https://doi.org/10.1111/j.1540-6261.1988.tb03952.x
Rasekh HR, Mehralian G, Vatankhah-Mohammadabadi AA. Situation analysis of R & d activities: an empirical study in Iranian pharmaceutical companies. Iran J Pharm Res. 2012;11(4):1013-25. https://pubmed.ncbi.nlm.nih.gov/24250532/
Derakhshandeh Dashti Gh. Application of cross-sectional method in relation to the study of the effect of company size and the ratio of book value to market value of ordinary stock on stock returns and profitability of companies listed on the Tehran Stock Exchange. B.Sc. Thesis Master of Accounting, Shiraz University;2020.
- Abstract Viewed: 244 times
- PDF Downloaded: 175 times