the inter relationship between profitability and growth in iranian market
Publish place: International Journal of Industrial Engineering & Production Research، Vol: 27، Issue: 3
Publish Year: 1395
نوع سند: مقاله ژورنالی
زبان: English
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شناسه ملی سند علمی:
JR_IJIEPR-27-3_002
تاریخ نمایه سازی: 2 آبان 1396
Abstract:
Owing to the attractiveness of developing economies, which seems Firm profitability engaging for investors, studying cardinal features of financial market of these economies seems important and necessary. The present study examines the relationship between firm s profitability and growth in Iranian manufacturing industry consisting of Tehran Stock Market listed between manufacturing firms. For the purpose of the study, firms annual data during2005-2014 period constituted the sample of the paper. In order to understand the direction of causality between firm growth and profitability, system GMM (Generalized Method of Moments) is employed to estimate growth and profit regressions. The results obtained indicate that there is a positive bilateral relationship between profitability and growth in the case of Iranian manufacturing firms. Also, the empirical analysis finds that the positive impact of current profit (growth) on current growth (profit) is stronger than the impact of the prior s year
Keywords:
Iranian financial market . Firm growth.System-GMM. Firm profitability
Authors
seyed babak ebrahimi
Department of Industrial Engineering, K. N. Toosi University of Technology
hooman abdollahi
Department of Industrial Engineering, Karaj Branch, Islamic Azad University
ali farmani
Department of MBA ,Iran University of Science and Technology