The Relationship between Structure of Assets and the Firm's Performance: Evidence from Tehran Stock Exchange

International Journal of Economics, Business and Finance, Vol. 1, No. 8, September 2013

8 Pages Posted: 10 Nov 2013

See all articles by Claudio Sottoriva

Claudio Sottoriva

Università Cattolica del S. Cuore di Milano - Dipartimento di Scienze dell'Econonomia e della Gestione Aziendale

Akbar Javadian Kootanaee

Islamic Azad University (IAU) - Faculty of Management & Accounting

Jalal Seyyedi

University of Tehran

Emran Mohamad Al-Qudah

University of Tehran

Date Written: September 1, 2013

Abstract

In recent years, extensive studies have been undertaken concerning the capital structure and performance. However, research on the relationship between structure of assets and performance has not applied. In this paper, the relationship between structure of assets and performance of firms listed in Tehran (Iran) Stock Exchange has been studied in various industries. For this purpose, the ratio of current assets to non-current assets as a structure of assets and Return on Assets (ROA) as criteria for firm performance was used. Findings of investigating 252 firms listed in Tehran Stock Exchange observation in the 2001 to 2012 in the four industries (pharmaceutical, chemical, cement and automobile) suggest in 95% confidence level, signification relation between structure of assets and performance existent. In other words Significant linear relationship between structure of assets and performance of active firms in the industry are examined, in fact, this relationship is different in various industries for examine the relationship, Nonlinearity test was used. Without intervention the moderating variable (in this study is capital structure), these statistical results show that the relationship between the pharmaceutical industry and cement as the relationship logarithmic; that is, with the increasing ratio of current assets to Non-current performance may improve, but its slope is less. In the Automotive industry and the Chemical yield was observed nonlinear relationship between structures of assets.

Keywords: Structure of Assets, Firms Performance, Type of Industrial

Suggested Citation

Sottoriva, Claudio and Javadian Kootanaee, Akbar and Seyyedi, Jalal and Al-Qudah, Emran Mohamad, The Relationship between Structure of Assets and the Firm's Performance: Evidence from Tehran Stock Exchange (September 1, 2013). International Journal of Economics, Business and Finance, Vol. 1, No. 8, September 2013, Available at SSRN: https://ssrn.com/abstract=2351961

Claudio Sottoriva

Università Cattolica del S. Cuore di Milano - Dipartimento di Scienze dell'Econonomia e della Gestione Aziendale ( email )

Largo Gemelli, 1
Via Necchi 9
Milan, MI 20123
Italy

HOME PAGE: http://www.unicatt.it

Akbar Javadian Kootanaee (Contact Author)

Islamic Azad University (IAU) - Faculty of Management & Accounting ( email )

Tehran
Iran

Jalal Seyyedi

University of Tehran ( email )

No.1 , North Didar St. , Haghani Hwy. , Tehran , I
Tehran, Tehran 5433174616
Iran
00989124372736 (Phone)

Emran Mohamad Al-Qudah

University of Tehran ( email )

Amirabad e shomali, kuye daneshgah e Tehran
Tehran, UT Tehran 5433174616
Iran

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