Separating Winners from Losers among Iranian Investment Companies during the Years 2004 to 2005

Following the stock crisis in the year 2005, this research was conducted to find out if there is any winner company in the relevant year. Focusing on Iranian investment companies during the years 2004 to 2005 and using F_SCORE model of Piotroski (2000) the results show that the number of winners and...

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Bibliographic Details
Published in:Journal of economic & management perspectives 2008-03, Vol.2 (1), p.12
Main Authors: Tehrani, Reza, Raei, Reza, Faizabad, Arash, Rahmati, Mohsen
Format: Article
Language:English
Subjects:
Abnormal returns
Dividends
Earnings per share
Financial statement analysis
Growth stocks
Investment companies
Investments
Liquidity
Literature reviews
Multivariate analysis
Portfolio performance
Prices
Rates of return
Ratios
Regression analysis
Return on assets
Securities markets
Stock exchanges
Stock prices
Studies
Value stocks
Variables
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Summary:Following the stock crisis in the year 2005, this research was conducted to find out if there is any winner company in the relevant year. Focusing on Iranian investment companies during the years 2004 to 2005 and using F_SCORE model of Piotroski (2000) the results show that the number of winners and losers among the 17 selected investment companies in the year 2004 are 4 and 0, namely 23.53 and 0 percent, respectively. These numbers for the year 2005 are 1 and 5, that is 5.88 and 29.41 percent, respectively. The relation between return and some variables such as trading volume (TV), number of buyers (NOB), number of transactions (NOT), return on equity (ROE), earning per share (EPS), dividend per share (DPS) and liquidity (L) was examined as well. Using panel data in a multivariable regression, the results show that there is only a negative correlation between return and DPS. Another finding of this research show that the mean of returns of the losers and the lone winner company in the year 2005 is significantly different and the winner company with its negative return has statistically earned more return rather the losers. Meanwhile, the non-significant difference between F_SCORE of the years 2004 and 2005 shows that the distribution of all investment companies in F_SCORE groups is not different. While the results earned only for the winners and losers show that the differences are not significant and significant in the years in question, respectively. [PUBLICATION ABSTRACT]
ISSN:2523-5338
2523-5338