The purpose of this study is to investigate the relation between changes of net income and operational cash flows with changes of stock returns in chemical productions industry. The statistical population taking part in this study includes the industries of chemical productions and during years 1382-1389. The aim was to forecast the changes in the stock returns using the net income changes and cash flows from operations changes. Based on this subject three hypotheses have been considered and analyzed by simple regression methods. The results shows only the first hypothesis have been confirmed and there is a correlation between net income changes and return on stock changes. It means, 6% of Changes in stock return can be explained with the net income changess. Generally, it was concluded that the issued information from the listed companies are unreliable because the Tehran Stock Exchange (TSE) is inefficient. Since issued information cannot affect the companies’ stock price and return, cash flows from operations changes cannot be used as a part of information to forecast companies’ stock returns.
Gord, A. and Parandin, K. (2015). The Relationship between Changes of Net Income and Operational Cash Flow with Variations of Stock Returns in Chemical Industry. New Researches on Accounting, 1(1), 37-45.
MLA
Gord, A. , and Parandin, K. . "The Relationship between Changes of Net Income and Operational Cash Flow with Variations of Stock Returns in Chemical Industry", New Researches on Accounting, 1, 1, 2015, 37-45.
HARVARD
Gord, A., Parandin, K. (2015). 'The Relationship between Changes of Net Income and Operational Cash Flow with Variations of Stock Returns in Chemical Industry', New Researches on Accounting, 1(1), pp. 37-45.
CHICAGO
A. Gord and K. Parandin, "The Relationship between Changes of Net Income and Operational Cash Flow with Variations of Stock Returns in Chemical Industry," New Researches on Accounting, 1 1 (2015): 37-45,
VANCOUVER
Gord, A., Parandin, K. The Relationship between Changes of Net Income and Operational Cash Flow with Variations of Stock Returns in Chemical Industry. New Researches on Accounting, 2015; 1(1): 37-45.