The Relationship between the Operational Profit, Operational Cash Flow and Abnormal Returns of Initial Public Offering in Tehran Stock Exchange

Document Type : Research Paper

Authors

1 Department of Management, Economics and Accounting, PNU University

2 . M.A. in Acounting

3 M.A. in Acounting

Abstract

The main purpose of the study was to survey the relationship between the operational profit and operational cash flow, and abnormal returns of the accepted companies' stock in Tehran stock exchange. To do so, it was analyzed a sample consisted of 36 companies among newly entered ones in Tehran stock exchange during 2006 to 2013. The results indicated that there is a positive and significant relationship between the operational profit and abnormal returns of stock in IPO; and, there is a weak relationship between the operational cash flow and abnormal returns of stock in IPO

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