Effect of indices associated to corporate profitability on investors’ decisions in Tehran stock exchange

Many factors are essential in stock Investment. One of the essential parameters mentioned as an important index in Analysis of Companies is the issue of profitability . A particular attention was paid on Changes in profit associated to companies by investors and stockholders. Investors have a tendency toward investment in stocks of companies with fast increase in the profits. In present paper, an observation about Effect of indices associated to corporate profitability on investors’ decisions of Tehran stock exchange has been provided. Independent variables include liquidity, ratio of Long-term debt to Equity (Total Debt / Total Equity), Sales Growth, Average stock price, and gross domestic product (GDP); also, dependant variables include on investors’ decisions of Tehran stock exchange. To collect data, library and field methods have been used. For the purpose of data collection, Questionnaires were distributed among 130 investors in Tehran stock exchange, and then according to data collection, observation about hypotheses of research and also data analysis were done through descriptive and inferential statistics. Data gathered via Questionnaire were analyzed via SPSS software.

Keywords:

corporate profitability , investors’ decisions , Stock Traders