Companies’ Investments and the Relationship between Loses and Companies’ Value in Tehran Stock Exchange

Abstract

This thesis investigates the affects of company investments on the relation between losses with value of company in Iran economic environment for the first time. The statistical society includes companies accepted in Tehran Stock Exchange and the time span of the study is from the beginning of 2000 up to end of 2010.Statistical samples of research has been elected by eliminating method from society companies. Furthermore, sample companies of research are lost companies. In this study, for statistical analysis and to test hypothesis, descriptive statistics and multiple linear regression are used. The main question is, if there is relation between loss and market value of stocks in lost companies. The results from testing of assumption show that investment of companies have a positive effect on the relation between losses with market values of stocks in lost companies. It means that investments of companies reduces negative relation between loss and market value of stocks.

Keywords

• investment
• firm value
• loss firms