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A Study of the Correlation between Investment Opportunities and Current Assets Growth in Firms listed in Tehran Stock Exchange, Iran

Author Affiliations

  • 1Department of Accounting, Persian Gulf International Branch, Islamic Azad University, Khorramshahr, IRAN

Res. J. Recent Sci., Volume 3, Issue (3), Pages 65-71, March,2 (2014)

Abstract

The present paper aims at providing evidence on the link between investment opportunities and current assets growth. A sample of 66 Tehran Stock Exchange enlisted firms during a 5-year period (2004-2009) was selected and examined. For investment opportunities, the market value to book value ratio and the profit to price ratio were used as independent variables and their relationship with current assets growth was studied. By using correlation matrix main component and Pearson linear correlation coefficient, it was concluded that there is a significant relationship between investment opportunities and current assets growth in firms and enterprises.

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