Abstract

This study aims to identify long-term financial performance of the companies in Tehran Stock Exchange and some economic variables like inflation rate, liquidity growth rate, exchange rate, and oil income. In this study, data was analyzed in a quarterly form from 2005-2013 using self-regression with distributional lags. Results of co-integration test showed a long-term correlation between economic variables and growth rate of cash return index. The long-term correlation between growth rate of cash return index and oil return and exchange rate was negative while the correlation between growth rate of cash return index and inflation rate was positive. Also, the significance of cash growth rate coefficient was rejected at 90% significance level.

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