The Effect of Inflation Accounting Application on Key Financial Ratios of banks and financial institute which listed in Tehran Stock Exchange

Considering the critical role of banks in the economic systems, any loss or inefficiency in the economic system could affect the activity of banks and financial institutions. The occurrence of inflation and price volatility in other markets could affect on operating costs, cost of money and profitability of banks. One way for assessing the performance of institute in analysis of financial ratios, and these ratios can be affected by inflation.  The aim of this study is to evaluate the impact of implementation of inflation accounting on key financial ratios such as liquidity, activity, profitability and market shares ratios for banks which listed in Tehran stock exchange and OTC. In order to test the hypothesis, the paired t-test and t-statistics were used. The sample of paper consists of ۱۳ banks and financial institutions for consecutive years ۱۳۹۰ and ۱۳۹۱. The findings showed that in ۱۳۹۰, there was a difference between homogeneous historical values compared with the historical recorded values for two ratios: return on equity and return on total assets. Moreover in ۱۳۹۱, there was a difference between homogeneous historical values compared with the historical recorded values for five ratios: return on equity, return on total assets, earning growth, earning per share and dividend earning per share.

Keywords:

Inflation Accounting , Financial Ratios , banking. , حسابداری تورمی , نسبت های مالی , بانک .