The Impact of Abnormal Growth of Inventories on Expected Stock Returns for Listed Companies on the Tehran Stock Exchange

Document Type : Original Article

Authors

1 Lecturer, Accounting Department, Saqez Technical and Vocational School, Technical and Vocational University (TVU), Kurdistan, Iran.

2 Lecturer, Department of Electrical and Computer Engineering, Saqez Technical and Vocational School, Technical and Vocational University (TVU), Kurdistan, Iran.

Abstract

This study was aimed at examining the impact of abnormal growth of inventories on expected stock returns for listed companies on the Tehran Stock Exchange. This study was based on library, analytical-causal study and analysis of panel data (data panel). It deals with financial information from 102 listed companies on the Tehran Stock Exchange between 2003 -2014 (1224 companies). The results suggested that the abnormal growth of inventories had a significand, direct impact on expected stock returns whereas similar studies in other countries, for instance the U.S.A, have demonstrated contradictory results. One main reason for the contradictory results might be inflation in Iran to the point that the unusual increase of inventories led to the rise in prices and thus more return.

Keywords

References

References
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Karafan Quarterly Scientific Journal
Volume 17, Issue 3 - Serial Number 49
Management and Entrepreneurship
December 2020
Pages 231-246

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History

  • Receive Date: 26 January 2020
  • Revise Date: 05 December 2020
  • Accept Date: 07 December 2020

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