2015, TextRoad Publicatio ISSN: 2090-42 Joural of Applied Evirometal ad Biological Scieces www.textroad.com Review betwee Tobi's Q with performace Evaluatio Scale Based Accoutig ad Marketig Iformatio i Accepted Compaies i Tehra Stock Exchage Behrooz Nabavad 1, Javad Rezaei 2* 1 Master of Accoutig, Ardabil Uiversity of Medical Scieces, Ardabil, Ira, 2 Master studet accoutig, Ardabil Uiversity of Medical Scieces, Ardabil, Ira, Received: Jauary 27, 2015 Accepted: March 31, 2015 ABSTRACT Ivestigatig the performace of compaies is oe of the most importat topics of iterest to maagers, ivestors, creditors ad other iterested parties; ad the results of that form the basis of may decisios, so that ay group of stakeholders seek to maximize their beefits. Evaluatig the performace of compaies is of utmost importace i the ecoomic decisio makig ad there are various criteria ad methods employed to evaluate the performace of compaies; hece, due to some shortcomigs i the accoutig iformatio provided to evaluate the performace of compaies, usig some criteria has bee take ito more cosideratio. Tobi s Q is oe of the criteria used i this regard. The preset research aims to ivestigate the relatioship betwee Tobi s Q ad performace evaluatio criteria based o accoutig ad market iformatio i compaies listed o the Tehra Stock Exchage i a 5-year period. I this research, the Kolmogorov Smirov test was the statistical method used to examie the ormal distributio; also, the Pearso s correlatio coefficiet test at the cofidece level of 95% was used to ivestigate the hypotheses. The results obtaied from this study show that there is a sigificat relatioship betwee the Tobi s Q ratio ad criteria of earigs per share, market price of shares to their book value of equity, ad retur o equity durig the 5-year period of this research as well as there is o sigificat relatioship betwee the Tobi s Q ratio ad ratios of price to earigs per share ad retur o total assets. INTRODUCTION The advacemet of sciece ad techology ad the idustrial revolutio caused huma relatios, especially their ecoomic ad trade relatios to eter a ew phase ad compaies quickly grow ad become larger ecoomic uits. The growth ad developmet of compaies created a lot of complexity i the way of ruig them ad caused the owers to etrust the executive maagemet to professioal ad selected maagers ad do duties such as defiig the executive objectives ad policies of the compay ad moitorig maagers themselves. The separatio of owership from maagemet created coflicts of iterest betwee the two groups ad the owers cocered whether maagers move i the iterests of them or whether they have good performace i optimal allocatio of resources or ot? Hece, owers have always sought to evaluate the performace of maagers. I additio to owers, evaluatig performace has bee oe of the topics of iterest to differet classes such as creditors, govermet, ad eve the maagers themselves. So evaluatig the performace of maagers is of utmost importace. There are various criteria used to evaluate the performace of maagers. However, these criteria are ot free from difficulty ad are always criticized; so attempts have bee made to elimiate defects, which have led to proposig ew criteria. Sice stakeholders are always lookig for criteria to show the performace of maagers i the best way possible, efforts are still ogoig to achieve the best performace evaluatio criteria. The growth ad developmet of joit stock compaies over time led to the emergece ad icrease of a stratum of capital owers who are ot directly ivolved i the maagemet of compaies ad guide ad supervise the affairs of it through the selectio of board. Also, the growth ad developmet of joit stock compaies caused the separatio of owership from maagemet to be raised; i other words, maagemet was a represetative of owers ad moitored their assets activities ad reported to them about operatio ad maagemet of their assets. With the elargemet of compaies, people tured to ivestmet i these compaies to get ivolved i the owership of large ecoomic uits. The majority of people gave their low capital to joit stock compaies ad i retur received iterest; i fact, they sought to maximize their wealth (Kavoosi, 2003). Although cosiderig the above issue, it is assumed that i the above relatioship, both sides try to maximize their ow iterests, the represetative may ot always move i the directio of maximizig the ower s iterests ad oly may maximize its ow iterests or ot have good Correspodig Author: Javad Rezaei, Master studet accoutig, Ardabil Uiversity of Medical Scieces, Ardabil, Ira, accjavadrezaei@gmail.com 138
Nabavad ad Rezaei, 2015 performace i optimal allocatio of resources. I the past ad for may years, ecoomists assumed that all groups related to a joit stock compay work for a commo goal but i the last 30 years, may cases of coflict of iterests betwee groups ad how compaies deal with these coflicts have bee discussed by ecoomists (Jese ad Mecklig, 1976), which has led to the argumet that there is a coflict of iterest betwee owers ad maagers as a represetative of the ower. Coflict of iterest cocers the owers (shareholders) isofar as they have to evaluate the performace of maagers to esure the optimal allocatio of resources by them. O the other had, i additio to maximize their ow iterests, maagers have always bee tryig to esure owers that their decisios are made i the iterests of owers (Kavoosi, 2003). I additio to what discussed, assessig ad measurig the performace of each orgaizatio helps to idetify the optimal level of performace, bottleecks ad problems. Owers apply differet tools ad criteria to evaluate the performace of maagers. At ay period of time, certai measures have bee proposed but stakeholders, to evaluate the performace of maagers, have selected ad used the criteria based o their view. Due to the flaws of traditioal criteria used for performace evaluatio, may attempts have bee made to elimiate the defects, which have led to the emergece of ew criteria. So owers always are lookig for criteria by which they evaluate the performace of maagers i the best way possible. The research importace ad ecessity Shareholders are always lookig for ways to assess the performace of maagers i creatig wealth for the compay ad the estimate of future performace; however, it ca be see i actio that they use iappropriate iformatio ad criteria for judgig the performace of maagers (Namazi, 2005). The lack of appropriate criteria for evaluatig performace as well as the lack of value creatio for shareholders causes the stock price of compaies ot to be close to their true value, because this usually leads to losses of a group of purchasers (purchasers of shares) ad profits of other group. I additio, to maximize shareholders wealth, there is o compesatio for maagers services i proportio to their actual performace ad this causes a gap betwee the iterests of maagers ad shareholders ad problems of coflict of iterests betwee the represetative ad the ower (Jahakhai ad Zarif Fard, 1995). Due to the followig reasos, traditioal criteria of performace evaluatio are ot able to assess the actual performace of compaies: 1- Neglectig the cost of fiacig through equity; 2- Havig a retrospective view; 3- Disregardig itagible assets ad itellectual capitals ivolved i the process of value creatio i compaies; 4- Igorig the effects of decisios ad future evets such as access to ew markets ad ew productio techology, iovatio of ew products, labor strikes, ad eactig ew laws ad regulatios; 5- Relyig o the ihibitory priciple of coservatism based o which i fiacial reportig, pessimism has bee see better tha optimism; 6- Ad the ability of large maipulatio through usig differet methods of accoutig earigs maagemet (Zeraatgari, 2007). For this reaso, ivestors, especially shareholders eed criteria to properly measure maagemet performace ad use them as a appropriate base for paymet maagemet ad compesatio systems ad icrease their motivatio ad idetificatio of optimal performace, bottleecks ad problems. I this regard, the Tobi s Q ratio as a ew measure of performace evaluatio is able to give the aswer to shareholders to what extet the maagemet has bee ivolved i icreasig their wealth. Cosiderig the issues discussed so far ad o the coditio that there is a sigificat relatioship betwee the Tobi s Q ratio ad criteria of market price of shares to their book value of equity or price-to-book value (P/B), price to earigs (P/E), retur o equity (ROE) ad retur o total assets (ROA), the Tobi s Q ratio ca be used as a alterative to these criteria for performace evaluatio. THE RESEARCH LITERATURE Studies outside Ira Tobi (1969), to assess the profitability of ivestmet projects, used the ratio of market value to book value of the ivestmet, that the ratio is kow as Tobi s Q idex (simple Tobi s Q ratio). His goal was to establish a causal relatioship betwee Q idex ad the amout of ivestmet made by the compay. He believed that if Q idex is calculated to be greater tha oe, there s plety of icetive to ivest; i other words, a high Q ratio usually suggests valuable ivestmet opportuities ad growth of the compay. If the Q ratio is lower tha oe, the ivestmet will be stopped. He the stated that the performace of compaies ca be measured better usig this ratio. 139
Saliger (1984) i a study as the relatioship betwee cocetratio ad profitability used the Q idex as a measure of moopoly power ad assessmet of the relatioship betwee market structure ad profitability of compaies. Oe result of this research is that the Tobi s Q ratio is the best criterio to measure the moopoly power of a compay. Morck, Shleifer, ad Vishy (1988) used the Tobi s Q as a measure to evaluate ad test the impact of owership o the performace of compaies. I the same year, Birger ad Cythia i a study as Tobi s Q ad the importace of focus i firm performace also ivestigated the Tobi s Q ratio ad foud the use of this criterio useful to evaluate the performace of compaies. Lag ad Litzeberger (1989) used the Tobi s Q ratio as a part of their aalysis to assess the impact of divided chages o stock prices. Lag, Stoles, ad Walkig (1989 ad 1991) used the Tobi s Q ratio as a idex to test the relatioship betwee maagemet performace ad resources resultig from participatio i teder offers ad the free cash flow hypothesis. Also, Opler ad Titma (1993) used the Tobi s Q ratio as a idex for ivestmet opportuities to test the amout of shares purchased. Lag ad Stoles (1994) ivestigated the relatioship betwee the Tobi s Q ratio ad ivestmet opportuities ad cocluded that if the ratio is calculated to be greater tha oe, the compay has more ivestmet opportuities. Deis et al. (1994) used the Tobi s Q ratio as a idex to assess divided chages o stock prices; i the same year, Liyod ad Jahra also used the Tobi s Q ratio to aalyze the relatioship betwee chages i capital structure ad the performace of compaies. Steve B. Perfect ad Keeth W. Wales (1994) i a study as alterative costructios of Tobi s Q ivestigated the Tobi s Q ratio as a idex to measure the performace of compaies. Also, they studied differet versios of Q. The results of this study showed that media, mea, ad stadard deviatio estimates of curret versios of Q are somewhat equal to each other. Berger ad Ofek (1995) used the Tobi s Q ratio to aalyze the relatioship betwee capital structure ad the performace of compaies. Also, Yermack (1996) used Tobi s Q to ivestigate the relatioship betwee the size of the board ad the performace of compaies. Leewille ad Baderat (1997) provided a ew ad somewhat altered patter of Q. I the same year, Loderer ad Marti i a study as the relatioship betwee owership ad firm performace also used the Tobi s Q for performace measuremet. Demsetz ad Villaloga (2000) coducted a study as owership structure ad firm performace. They cosidered firm performace as the depedet variable i their study ad measured it usig the Tobi s Q idex. The results of this study idicated that there is o sigificat statistical relatioship betwee owership structure ad firm performace. Also, their fidigs were cosistet with the view that the spread of owership gives rise to agecy problems, but icreased icome from property developmet compesates the agecy problems. Sevilla (2001) assessed Tobi s Q as a criterio to measure the performace of multiatioal corporatios. The results of this study showed that compaies whose Tobi s Q is higher tha oe ejoy better performace. Gugler ad Yurtoglu (2003) i a article as average Q, margial Q ad the relatioship betwee owership ad performace discussed about measurig the performace of maagemet usig the average ratios such as ROA ad Tobi s Q. These researchers believed that mea is ot a suitable criterio for measurig performace, because: 1- I calculatig the mea, outliers are removed; so it is less tha ideal for beig used to test hypotheses related to maagemet behaviors. 2- Usig the mea for performace measuremet requires settig a structural model of determiats; but such a model does ot exist. Hece, they suggested usig a ratio achieved from divisio of the compay s ivestmet returs by the cost of capital to accurately measure the performace of maagers. They called the ratio margial Q. Harey ad Tower (2003) tried to predict the stock retur usig Tobi s Q ad P/E ratios. The results of this study were cosistet with the results of studies coducted by Smith ad Wright (2000) ad differet from the results of a study coducted by Shiller (2000). The results of this study showed that the Tobi s Q ratio is more reliable tha the P/E ratio i predictig real rate of retur. Wolf (2003) i a article as Tobi s Q as a idex of performace evaluatio ivestigated the Tobi s Q ratio. Accordig to this study, amog various ecoomic idices for the assessmet of firm performace, the Tobi s Q ratio ca be used to evaluate a compay s efficiecy i ivestmet. Arcelus et al. (2005) examied the relatioship betwee the compay s accoutig retur o ivestmet (ROI) ad its ecoomic retur measured by Tobi s Q. The results of this study cotrasted with a study that was coducted i 1995 by Shapiro ad Ladsma who claimed that ROI has a descriptive role for Tobi s Q ad there is completely a 140
Nabavad ad Rezaei, 2015 liear relatioship betwee them, but the fidigs of Arcelus et al. showed a o-liear relatioship betwee these two criteria (Q ad ROI). Studies iside Ira Kavoosi (2003) ivestigated the relatioship betwee the Tobi s Q ratio ad ecoomic value added (EVA) of compaies listed o the Tehra Stock Exchage i 1998-2001. The results of this study showed that there is a sigificat relatioship betwee the Tobi s Q ratio ad EVA. Karimi (2006) ivestigated the relatioship betwee chages i market value added (MVA) ad EVA ad the Q idex i compaies listed o the Tehra Stock Exchage. The results of this study show that both criteria of EVA ad Q idex are able to explai MVA ad evaluate the performace to idetify the value created i the market ad chages i shareholders wealth; i additio, they are able to substitute for oe aother. Razaziai (2007) studied the relatioship betwee accoutig ad market criteria i evaluatig the performace of compaies listed o the Tehra Stock Exchage i 2001-2005. The results of this study showed that i compaies with high, average, ad low growth, there is a positive ad sigificat relatioship betwee the ratio of operatig profit ad retur o equity ad Tobi s Q as well as betwee the ratio of operatig profit ad retur o equity ad stock returs. Zeraatgari (2007) ivestigated the applicatio of the Tobi s Q ad the compariso betwee Tobi s Q ad other performace evaluatio criteria i compaies listed o the Tehra Stock Exchage. The results of this study showed that there is a sigificat relatioship betwee the Tobi s Q ratio ad criteria of stock price ad earigs per share; however, there is o sigificat relatioship betwee the Tobi s Q ratio ad quick ad curret ratios, operatig profit, sales, asset turover ratio, the growth of sales, ad profit growth. The research objectives The preset research aims to discover the correlatio betwee traditioal criteria of performace evaluatio such as price to earigs (P/E), earigs per share (EPS), market price of shares to their book value of equity or priceto-book value (P/B), retur o equity (ROE) ad retur o total assets (ROA) ad the Tobi s Q ratio as a ew criterio of performace evaluatio; that i the case of ay correlatio betwee the traditioal criteria ad the Tobi s Q ratio, the Q ratio ca be used as a alterative to these criteria for performace evaluatio. The research hypotheses 1- There is a sigificat relatioship betwee the Tobi s Q ad price to earigs (P/E) ratios. 2- There is a sigificat relatioship betwee the Tobi s Q ad earigs per share (EPS) ratios. 3- There is a sigificat relatioship betwee the Tobi s Q ad price-to-book value (P/B) ratios. 4- There is a sigificat relatioship betwee the Tobi s Q ad retur o equity (ROE) ratios. 5- There is a sigificat relatioship betwee the Tobi s Q ad retur o total assets (ROA) ratios. The research variables The idepedet variable Here, the ratios of price to earigs (P/E), earigs per share (EPS), market price of shares to their book value of equity or price-to-book value (P/B), retur o equity (ROE) ad retur o total assets (ROA) have bee cosidered as the idepedet variables of the research. The depedet variable I this research, the Tobi s Q ratio has bee cosidered as the depedet variable. THE RESEARCH METHODOLOGY Based o the purpose of this study, it is a applied research which has bee coducted usig a causalcomparative approach ad iformatio from the past; o the other had, the research is a correlatioal study i terms of the method. The iformatio required to test the research hypotheses are amog the secod class iformatio of samples compaies, which has bee extracted from various sources such as the CD of fiacial iformatio of compaies listed o the Tehra Stock Exchage (provided by Exchage Iformatio Compay) ad the websites of www.seo.ir ad www.rdis.ir. The research statistical populatio ad sample The research populatio cosists of all compaies listed o the Tehra Stock Exchage i 2005-2009, which should at least have the followig coditios: 141
- Compaies fiscal year should ed o March 20; - Their shares should be i the stock market durig the years uder study; - Compaies must ot have chaged their fiscal year durig the period uder study; - The compaies iformatio should be accessible; - Ad their operatios must ot have bee iterrupted. Cosiderig the above restrictios, 91 compaies were selected as the statistical populatio. Usig the Cochra s sample size formula, the size of statistical sample has bee calculated as follows: 2 Nt p( q) 2 = 91(1.96).5(.5) 2 2 = = Nd + t p( q) 2 2 91(.05) + 1.96.5(.5) N = the statistical populatio which is reported equal to 91. t = percetile of the stadard ormal distributio which is equal to 1.96 i this research. P = it is cosidered to be 0.5 to achieve the maximum sample size. q (1-p) = it is cosidered to be 0.5. d = absolute error which is equal to 0.05. Accordigly, the sample size for this research is obtaied equal to compaies. The period of ivestigatio Here, the period uder study icludes 5 years from 2005 to 2009. The data collectio method I this study, the library method has bee used to gather the required data. Accordigly, the data required for theoretical foudatios were gathered through studyig Persia ad Lati books ad specialized jourals. Also, to test the research hypotheses, the required data related to sample compaies were collected through visitig the Tehra Stock Exchage ad extractig the required iformatio from the fiacial statemets, explaatory otes, weekly reports, ad aals ad magazies of Stock Exchage. The data aalysis Statistical methods used i the research I iferetial statistics, the hypotheses have bee tested usig the Kolmogorov Smirov test alog with statistics relatig to the measuremet of the ormal distributio. I additio, the Pearso s correlatio coefficiet test has bee used to measure the hypotheses. The extracted data were firstly arraged i the Excel software ad the aalyzed by the SPSS software. The statistical methods Here, two statistical methods have bee used to aalyze data ad test the research hypotheses: 1- The first part: descriptive statistics icludig the mea ad stadard deviatio 2- The secod part: iferetial statistics icludig: A) The default test: testig the ormality of the populatio distributio B) The mai test: the Spearma s oparametric correlatio coefficiet The reaso for usig the Spearma s correlatio coefficiet is that the populatio distributio is ot ormal; hece, the Spearma s correlatio coefficiet which is equal to the Pearso s oparametric correlatio coefficiet has bee used to examie the relatioship betwee o-ormal variables. The results of testig hypotheses The first hypothesis: There is a sigificat relatioship betwee the Tobi s Q ad price to earigs (P/E) ratios. H 0= There is t a sigificat relatioship betwee the Tobi s Q ad price to earigs (P/E) ratios. H 1 There is a sigificat relatioship betwee the Tobi s Q ad price to earigs (P/E) ratios. At this stage, the hypotheses are tested separately for each year. Table 1 shows the iformatio. Table 1: The Spearma correlatio coefficiet for review betwee the Tobi s Q ad price to earigs (P/E) ratios. 0.22 0.13-0.01-0.05 0.07 P-Value 0.06 0.23 0.87 0.64 0.52 Test result Cofirm H 0 Cofirm H 0 Cofirm H 0 Cofirm H 0 Cofirm H 0 142
Nabavad ad Rezaei, 2015 Based o the evidece collected, the first hypothesis is rejected. The results obtaied from testig the hypotheses of this research show that there is o correlatio betwee the Tobi s Q ad price to earigs (P/E) ratios durig 2005-2009. The secod hypothesis: There is a sigificat relatioship betwee the Tobi s Q ad earigs per share (EPS) ratios. H 0= There is t a sigificat relatioship betwee the Tobi s Q ad earigs per share (EPS) ratios. H 1 There is a sigificat relatioship betwee the Tobi s Q ad earigs per share (EPS) ratios. At this stage, the hypotheses are tested separately for each year. Table 2 shows the iformatio. Table 2: The Spearma correlatio coefficiet for review betwee the Tobi s Q ad earigs per share (EPS) ratios. -0.67-0.65-0.70-0.68-0.69 P-Value 0.001 0.001 0.001 0.001 0.001 Test result reject H 0 reject H 0 reject H 0 reject H 0 reject H 0 Based o the evidece collected, the secod hypothesis is cofirmed. The results obtaied from testig the hypotheses of this research show that there is a correlatio betwee the Tobi s Q ad earigs per share (EPS) ratios durig 2005-2009. The third hypothesis: There is a sigificat relatioship betwee the Tobi s Q ad price-to-book value (P/B) ratios. H 0= There is a sigificat relatioship betwee the Tobi s Q ad price-to-book value (P/B) ratios. H 1 There is a sigificat relatioship betwee the Tobi s Q ad price-to-book value (P/B) ratios. At this stage, the hypotheses are tested separately for each year. Table 3 shows the iformatio. Table 3: The Spearma correlatio coefficiet for review betwee the Tobi s Q ad price-to-book value (P/B) ratios. 0.28 0.32 0.29 0.26 0.32 P-Value 0.013 0.005 0.010 0.022 0.005 Test result reject H 0 reject H 0 reject H 0 reject H 0 reject H 0 Based o the evidece collected, the third hypothesis is cofirmed. The results obtaied from testig the hypotheses of this research show that there is a correlatio betwee the Tobi s Q ad price-to-book value (P/B) ratios durig 2005-2009. The fourth hypothesis: There is a sigificat relatioship betwee the Tobi s Q ad retur o equity (ROE) ratios. H 0= There is t a sigificat relatioship betwee the Tobi s Q ad retur o equity (ROE) ratios. H 1 There is a sigificat relatioship betwee the Tobi s Q ad retur o equity (ROE) ratios. At this stage, the hypotheses are tested separately for each year. Table 4 shows the iformatio. 143
Table 4: The Spearma correlatio coefficiet for review betwee the Tobi s Q ad retur o equity (ROE) ratios. -0.59-0.34-0.41-0.43-0.34 P-Value 0.001 0.002 0.001 0.001 0.003 Test result reject H 0 reject H 0 reject H 0 reject H 0 reject H 0 Based o the evidece collected, the fourth hypothesis is cofirmed. The results obtaied from testig the hypotheses of this research show that there is a correlatio betwee the Tobi s Q ad retur o equity (ROE) ratios durig 2005-2009. The fifth hypothesis: There is a sigificat relatioship betwee the Tobi s Q ad retur o total assets (ROA) ratios. H 0= There is t a sigificat relatioship betwee the Tobi s Q ad retur o total assets (ROA) ratios. H 1 There is a sigificat relatioship betwee the Tobi s Q ad retur o total assets (ROA) ratios. At this stage, the hypotheses are tested separately for each year. Table 5 shows the iformatio. Table 5: The Spearma correlatio coefficiet for review betwee the Tobi s Q ad retur o total assets (ROA) ratios. 0.10 0.10-0.03-0.006-0.003 P-Value 0.89 0.38 0.78 0.96 0.98 Test result Cofirm H 0 Cofirm H 0 Cofirm H 0 Cofirm H 0 Cofirm H 0 Based o the evidece collected, the fifth hypothesis is rejected. The results obtaied from testig the hypotheses of this research show that there is o correlatio betwee the Tobi s Q ad retur o total assets (ROA) ratios durig 2005-2009. The coclusio Although accordig to statistical aalyses it is cocluded that there is o correlatio betwee the Tobi s Q ad the two ratios of price to earigs (P/E) ad retur o total assets (ROA), it does ot mea that there is o relatioship betwee these variables. I other words, statistically ad based o the aalyses, the researcher could ot reject the ull hypothesis idicatig the lack of a sigificat relatioship betwee the Tobi s Q ratio ad the two ratios of price to earigs (P/E) ad retur o total assets (ROA); hece, it has bee ievitably accepted; but the correlatio betwee the Tobi s Q ad the ratios of earigs per share (EPS), price-to-book value (P/B), ad retur o equity (ROE) is proved ad the ull hypothesis is rejected. Due to the weak correlatio coefficiet ad coefficiet of determiatio betwee the Tobi s Q ad price to earigs (P/E) ad retur o total assets (ROA), it ca be cocluded that these two ratios are weakly able to explai chages i the Tobi s Q ratio; as a result, the Tobi s Q ratio caot be used as a alterative to these criteria for fiacial performace evaluatio. Also, cosiderig the results of testig hypotheses ad high correlatio coefficiet ad coefficiet of determiatio betwee the Tobi s Q ratio ad ratios of earigs per share (EPS), price-to-book value (P/B), ad retur o equity (ROE), it ca be cocluded that these ratios are highly able to explai chages i the Tobi s Q ratio. However, amog these three ratios, EPS ad P/B respectively have the highest ad lowest ability to explai the Tobi s Q chages; thus, the Tobi s Q ratio ca be used as a alterative to these criteria for fiacial performace evaluatio. The results regardig the relatioship betwee the Tobi s Q ratio ad earigs per share (EPS) are cosistet with results of the study coducted by Zeraatgari (2007) ad the results regardig the relatioship betwee the Tobi s Q ratio ad retur o equity (ROE) are cosistet with results of the study coducted by Razaziai (2007). The research limitatios 1- Due to the lack of adequate ad reliable iformatio for some compaies, some of them were removed from the populatio. 144
Nabavad ad Rezaei, 2015 2- Oly few compaies have regularly published midterm reports; so, assessig the periods less tha oe year has bee ievitably eglected. The practical suggestio of the research 1- To prevet irregular stock price chages of some compaies, which lead to earig abormal profits through iformatio ret of some major shareholders, it is recommeded to the Tehra Stock Exchage to make compaies provide clear ad timely iformatio about the causes of their excessive share prices ad prevet the losses of may retail ivestors. 2- Ivestors i Tehra Stock Exchage are recommeded ot to stop at stock prices i their decisios ad take ito cosideratio other performace evaluatio criteria. Besides the other criteria, they ca fid the Tobi s Q ratio a useful performace measure to get help for proper decisio-makig. 3- The Tehra Stock Exchage should require compaies to provide ew ratios such as Tobi s Q for users alog with other fiacial reports. REFERENCES 1. Jahakhai,Ali, Sadjadi,Asghar(1995), Usig the cocept of ecoomic value added i fiacial decisios, Fiacial Research,year 2,No 3&4,pp 69-75 2. Jahakhai,Ali, zarif fard,ahmad(1995), Are maagers ad shareholders used criterio to measurig compaies?, Fiacial Research,year 2,No 7&8,pp 41-66 3. Hafez ia, Mohammad Reza (2009)Itroductio to Research i the Humaities, samt Publicatios 4. Ezzati, Mortaza(1998), Tarbiat Modares Uiversity ecoomic research istitute, Methods i the Social Scieces,first prited 5. Delavar, Ali(2006), Theoretical ad practical research i the humaities ad social,roshd Publicatios, fifth prited 6. amazi,mohammad(2007),a Ivestigatio of the Tobi's Q Ratio ad it's Compariso with other Criterio of the Maagers1 Performace Measuremets for Compaies Accepted i Tehra Stock Exchag, Joural of Accoutig Advaces,PP 231-262 7. Modarres,Ahmad,abdollahzadeh,farhad,(1990) Fiacial maagemet, Fiacial maagemet, Commercial Publicatio,first prited 8. Naderi, Ezatollah, Saif Naraghi, Maryam(2013) Methods of Research ad the evaluatio of Humaitie,badr Publicatio,Fifth Editio, Nith pritig 9. amazi,mohammad(2005), Review applicatio of agecy theory i maagemet accoutig,pp147-164 10. Houma,heydar ali(2006), Recogitio scietific Method i the Behavioral Scieces, Parsa Publicatio,6th prited 11. Arcelus F. J. Nitra D. ad G. Sriivasa (2005). O the Icidece of Deferred Taxes Itagibles ad No- Liearities i the Relatioship 12. Betwee Tobi s Q ad ROI. Joural of Ecoomics ad Busiess 57 (2) 165-185. 13. Berger P. G. ad Ofek E. (1995). Diversificatios Effect o Firm Value.Joural of Fiacial Ecoomics 38 39-65. 14. Bartlett J. E. Kotrlik J. W. ad Higgis C. C. (2001). Orgaizatioal Research: Determiig Appropriate Sample Size i Survey Research. 15. Iformatio Techology Learig ad Performace Joural 19 (1) 43-50. 16. Bharadwaj A. Bharadwaj S. ad Kosyski B. (1999). Iformatio Techology Effect o Firm Performace as Measured by Tobi'q.Maagemet Sciece 45 (6) 1008-1025. 17. Birger W. ad Cythia A. M. (1988). Tobis q ad the Importace of Focuse i Firm Performace. America Ecoomic Review 89 246-250. 18. Braiard W. ad Tobi J. (1977). Pitfalls i Fiacial Model-Buildig. America Ecoomic Review 58 (2) 99-122. 19. Braiard W. Shove J. ad Weiss L. (1980). The Fiacial Valuatio of The Retur to Capital. Brookigs Papers o Ecoomic Activity (2) 453-502. 20. Cael M. C. ad Servaes P. (1995). Additioal Evidece o Equity Owership ad Corporate Value. Joural of Fiacial Ecoomics 27 (2 595-612). 21. Chi Ch. L. Lee P. ad Chi H. Y. (2006). Patet Citatio R&D Spillover ad Tobi's Q: Evidece from Taiwa Semicoductor Idustry. Review of Quatitative Fiace ad Accoutig 26 (1) 67-84. 22. Chug K. H. ad Pruitt S. W. (1994). A Simple Approximatio of Tobi s Q. Fiacial Maagemet 23 0-4. 23. Demstz H. ad Villaloga B. (2000). Owership Structure ad Performace. Joural of Fiacial Ecoomics 65 211-254. 145
24. Deis D. J. Deis D. K. ad Sari A. (1994). The Iformatio Cotet of Divided Chages: Cach Flow Sigalig Over Ivestmet ad Divided Clieteles Joural of Fiacial ad Quatitative Aalysis 35 (13) 567-587 25. Foster G. (1986). Fiacial Statemet Aalysis New Jersey: Pretice-Hall Ic. 26. Gugler K. ad Yurtoglu B. B. (2003). Average Q Margial Q ad the Relatio betwee Owership ad Performace. Ecoomics Letters May/July 379-384. 27. Harey W. ad Tower T. (2003). Predictig Equity Returs Usig Tobi q ad Price-Earigs Ratio Joural of Ivestig 12 (3) 80-92. 28. Hampto Johs (2007) Fiacial Maagemet cocept problems ad cases 76-88 29. Hug J. (2006). A Three-Phased-Switchig Relatioship betwee Tobi s Q ad the Shares Owed by the Directors: A Empirical Study o the Taiwaese Electroic Idustry. The Joural of America Academy of Busiess 8 (1) 260-266. 30. Jese M. G. ad Mecklig W. (1976). Theory of the Firm: Maagerial Behavior Agecy Costs ad Owership Structure. Joural of Fiacial Ecoomics 3 (4) 305-360. 31. Ladsma W. R. ad Shapiro A. C. (1995). Tobi s Q of ad the Relatio betwee Accoutig ROI ad Ecoomic Retur: Professioal Adoptio.Joural of Accoutig & Fiace 10 (1) 103-121. 32. Lag L. ad Litzeberger R. H. (1989). Divided Aoucemets: Cash Flow Sigalig vs Free Cash Flow Hypothesis Joural of Fiacial Ecoomics 24 181-191. 33. Lag L. ad Stulz R. (1994). Tobi q Corporate Diversificatio ad Firm Performace. Joural of Political Ecoomy 1248-1281. 34. Leewille W. G. ad Baderet S. G. (1997). O the Measuremet of Tobis Q Joural of Fiacial Ecoomics 44 (1) 77-122. 35. Lideberg E. B. & Ross S. A. (1981). Tobis Q Ratio ad Idustrial Orgaizatio. Joural of Busiess 54 (1) 1-33. 36. Meigs Williams Haka Better Accoutig eleve editio 1999-37. Morck R. Shleifer A. ad Vishy R. W. (1988). Maagemet Owership ad Market Valuatio: A Empirical Aalysis. Joural of Fiacial Ecoomics 20 (44) 293-315. 38. Opler T. ad Titma S. (1993). The Determiats of Leveraged Buyout Activity: Free Cash Flow Versus Fiacial Distrees Costs. Joural of Fiace 18 68-95. 39. Saibal G. (2007). Bak Moitorig Maagerial Owership Ad Tobi's Q:A Empirical Aalysis for Idia. Maagerial ad Decisio Ecoomic 28(2) 129-143. 40. Saliger M. (1984). Tobis Q Uioizatio ad the Cocetratio Profits Relatioship. Rad Joural of Ecoomics 15 159-170. 41. Sauaia A. C. A. (2001). Evaluatio of Performace i Busiess Games:Fiacial ad No-Fiacial Approaches. Developmets i Busiess Simulatio ad Experietial Learig 28 210-215. 42. Steve B. P. ad Keeth W. W. (1994). Alterative Costructio of Tobis Q: A Empirical Compariso. Joural of Empirical Fiacial 1. 341-313 43. Stewart G. B. (1991 ). The Quest for Value: A Guide for Seior Maagers. New York: Harper Busiess Publisher. 44. Tobi J. (1969). A Geeral Equilibrium Approach to Moetary Theory.Joural of Moey Credit ad Bakig 1 15-29. 45. Tobi J. (1978). Moetary Policies ad the Ecoomy: the Trasmissio Mechaism. Souther Ecoomic Joural 37 421-431. 46. Tompkig S. ad Darrell E. L. (1999). A Modified Versio of the Lewelle ad Badriath Measure of Tobis Q. Fiacial Maagemet 35 20-31. 47. Tosi H. ad Gomez-Mejia L. (1994). CEO Compesatio Moitorig ad Firm Performace. Academy Maagemet Joural 37 (4) 1002-1016. 48. Wolfe J. (2003). The Tobi'q as a Compay Performace Idicator. Developmets i Busiess Simulatio ad Experimetal Learig 30-155-160. 49. Yermack D. (1996). Higher Market Valuatio of Compaies with a Small Board of Directors. Joural of Fiacial Ecoomics 25 185-211. 146