THE INFLUENCE OF THE RATE OF FIXED ASSETS ON THE STOCK TURNOVER ON ADMITTED COMPANIES IN TEHRAN STOCK EXCHANGE

KARIMI A.^1
1Accounting Department, Management and Accounting Faculty, Shahre E Ray Branch, Islamic Azad University, Tehran, Iran.

Received : 21-04-2012     Accepted : 02-01-2014     Published : 18-12-2014
Volume : 4     Issue : 1       Pages : 41 - 47
Bioinfo Bus Manag 4.1 (2014):41-47

Conflict of Interest : None declared

The present study is intended to provide information regarding the influence of investment in fixed assets on the financial function of companies measured through short-term (annual) and long-term (5-year period average) stock turnover rate. Studying the status of investment in fixed assets is of great importance both in terms of its influence on financial resources available to be distributed among the company's stakeholders and creditors and its influence on decrease in the company's general risk due to increase in the expected benefits of the assets and consequently, the decrease in turnover; so that the results of research conducted in this regard proves the existence of negative relationship between the increase in the rate of growth of fixed assets and stock turnover. In this study, the relationship between the rate of growth in fixed assets and stock turnover from 2004 until 2008 in the companies admitted in Tehran Stock Exchange was studied. Correlation test and linear regression tests using SPSS statistical software were used to analyze the test results. Study results suggest that there is a significant negative relationship between the increase in the rate of growth of fixed assets with the turnover of short-term and long-term stock.