Relationship between Net Operating Assets and Future Stock Returns

Abstract

The purpose of investing in any property or institution to maintain capital in addition, is yield that in this direction predicted yield for potential investors, actual and financial analysts is important. Present research, a new method has provided for analyzing and forecasting stock return. In this method, the operational assets considered by Sloan in 1996, is used as a new variable to predict the stock return. This research relationship between net operating assets and abnormal stock returns has investigated companies accepted on Tehran Security Exchange if any relationship can be meaningful, can be used study results to predict the stock return. In order to, for companies accepted in Tehran Stock Exchange, as the statistical community, the number of 95 companies eligible for the above research were selected .The results of the research after applying F test and regression analysis conducted in this study showed that there was not a significant relationship between net operating assets and abnormal stock returns. In other words, information contained in balance sheet in the investors decision making to determine the stock returns and abnormal stock returns no effect or balance sheet have no content information.

Keywords

• net operating assets (noa)
• net current operating assets (ncoa)
• net non current operating assets (nncoa)
• abnormal stock returns