Study of Relationship between Financial Ratios and Stock price in Stock Exchange of Tehran

Nowadays changes of stock price are one of the main and the most central issues in efficient market. The main purpose of this study is to analyze the relationship between financial ratios and stock prices of listed companies in stock exchange of Tehran. Four this purpose four main hypotheses and ten other hypotheses were tested. To test hypotheses 118 companies during 1386 and 1392 were chosen from listed companies of stock exchange of Tehran.This choice was made by systematic elimination to test the hypotheses and analyze data; E views 7 software and the integration of cross sectional data and time (Panel Data) were used.The results show that from selected financial ratios, current rates, immediate rates, debt, debtto shareholders equity, output of property, profit on sale, circulation of stock, circulation of all properties have significant relationship with stock price. There is no significantrelationship between fixed assets turnover ratios, gross profit margin on sales, and stock price.

Keywords:

Financial ratios , stock price , the integration of cross sectional data and time , Stock Exchange of Tehran