Surveying the Effect of Management Ability on the Return and Value Added in Tehran Stock Exchange

This study intended to determine the effects of manager operational ability on return and added-value on used capital on the listed companies in Tehran stock exchange. In this study, the return on equity and how to use of physical resources (added-value of used capital) are studied. The study period had been five year, since 200 9 to 2013. The statistical sample consisted of 98 companies among listed companies in stock exchange. The findings indicated that the management ability variable is not significant this year, but it was significant in the last year. It means that manager's ability had positive effect on the company return level in the last year. But, the management ability in the last year had positive and significant effect on return on equity in Tehran stock exchange. As the main variable (i.e. management ability this year) has significant relationship with dependent variable, the research hypothesis is rejected. So, it can be said that management ability on return on equity has no effect in Tehran stock exchange. Also, the results showed that the managers with high ability have better ability in applying the physical resources. In sum, the results suggested that management ability has no effect on return this year, but it effects significantly on added-value of used capital and we can accept that the management ability can be considered as a factor in gaining high interests.

Keywords:

Management ability , return on equity , added-value on used capital