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The Relationship between EPS and CFO with Return on Shares in Companies Listed in Tehran Stock Exchange

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  • Abolfazl Ghadiri Moghaddam
  • Yones Gholami
  • Arezoo Salarian
  • Mahsa Sareminia
  • Navid Farzaneh
  • Mahsa Asgari

Abstract

The present study was designed to gather evidence about the relationship between earnings per share and cash flow from operating activities and current return on shares in listed companies in Tehran. A multiple linear regression was used to test the relation between earnings per share and operating cash flow and the rate of return on equity. Also four hypotheses for this study were provided. Statistical sample of study consists of 50 participates in a period of time 5 years from 2010 to 2013. The findings indicated that the first hypothesis is confirmed. It means there is a positive significant relationship between earnings per share and return on equity. Also about third hypothesis that examines the relationship between earnings per share and current return on equity, the result showed there is significant positive relationship between these two variables. But the results of research showed that there is not significant relationship between operational cash flow for each share and the current return and total shares.

Suggested Citation

  • Abolfazl Ghadiri Moghaddam & Yones Gholami & Arezoo Salarian & Mahsa Sareminia & Navid Farzaneh & Mahsa Asgari, 2015. "The Relationship between EPS and CFO with Return on Shares in Companies Listed in Tehran Stock Exchange," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(4), pages 37-45, April.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:4:p:37-45
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    References listed on IDEAS

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    1. Doron Nissim & Amir Ziv, 2001. "Dividend Changes and Future Profitability," Journal of Finance, American Finance Association, vol. 56(6), pages 2111-2133, December.
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    Cited by:

    1. Murtadha Alhilfi, 2019. "Role of using the Relative Strength Index in Making Speculation Decision in Stock Applied Research in the Iraq Stock Exchange," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(1), pages 123-135, January.

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