The Analytical Comparison of Financial Ratios of Listed Companies in Tehran and Istanbul Stock Exchanges

Abstract

The purpose of this study is to compare financial ratios of companies listed in Tehran Stock Exchange and Istanbul Stock Exchange. To do so, 10 financial ratios including liquidity ratios, activity, debt and profitability in 7 different industrial groups were compared. 159 companies of Tehran Stock Exchange and 84 companies of Istanbul Stock Exchange were selected during 2010 to 2012. In order to test the hypotheses, first Kolmogorov-Smirnov was used to check the normality of the data. Then, T-test and nonparametric Mann-Whitney were used for testing two independent statistical populations. The overall results indicated that liquidity, activity, and debt ratios of companies in Istanbul Stock Exchange had a better condition than those in Tehran Stock Exchange. In contrast, profitability ratios of Tehran Stock Exchange companies were higher.

Keywords

• Analytical comparison
• Financial Ratios
• Tehran Stock Exchange
• Istanbul Stock Exchange