Information Content of Book Value and Net Income in Weak and Strong Companies: An Empirical Study

اقتصاد پولی مالی

Article 7, Volume 17, Issue 30, January 2011   

Document Type: پژوهشی

DOI: 10.22067/pm.v17i30.27242

Authors

Saei Mohammad Javad^* ; Ali Esmaeili; Akbar Bagheri

Abstract

This study examines the relationship of "book value" and "net income" with the value of companies (Stock Prices). The results are consistent with previous study for “strong companies”, but in “weak companies" the relationship of two criteria with the value of companies is almost the same. Although, the "book value" have a higher relationship with the value of the firm, but the difference isn't significant

Keywords

Book Value; Net Profit; Firm value; Weak and Strong Firms; Tehran Stock Exchange