During the past few years, there have been tremendous studies on measuring the effects of various factors on stock prices. This paper presents an empirical investigation to study the effects of book value, net earnings and cash flow on stock prices of 129 selected firms listed on Tehran Stock Exchange over the period 2007-2012. Using some regression techniques, the study has determined that the effects of book value, net earnings as well as cash flow decreases over the time although the effects of book value is bigger than net earnings and cash flow. However, as time passes on, there is no change on trend of the effects of these components on stock price.

This paper presents an empirical investigation to study the effects of two macroeconomic factors; namely exchange rate and liquidity on stock index. The proposed study was applied in Iran and on major index of Tehran Stock Exchange over the period 2001-2011. They reported that the currency exchange maintained negative impact on stock exchange for the period of investigation. This is due to the fact that when currency devalued, working capital decreases and firms did not enough money to purchase raw materials, pay wages, etc. In addition, liquidity marinated a direct and positive relationship with exchange index. However, the impact of liquidity seems to be bigger than currency exchange.

One of the primary concerns on most business activities is to determine an efficient method for ranking mutual funds. This paper performs an empirical investigation to rank 42 mutual funds listed on Tehran Stock Exchange using Sortino method over the period 2011-2012. The results of survey have been compared with market return and the results have confirmed that there were some positive and meaningful relationships between Sortino return and market return. In addition, there were some positive and meaningful relationship between two Sortino methods.

Bankruptcy has been one of the most important issues among investors in stock market and there are literally different techniques for predicting bankruptcy. In this paper, we study on effects of cash flow patterns and auditors’ opinions in predicting financial distress on some 80 selected firms traded on Tehran Stock Exchange over the period 2005-2011. In this study, the combination of cash flow patterns represent firm’s resource allocations and operational capabilities interacted with their strategy choices. In additions, predictions about each individual cash flow components, operational, investment, financial, are derived from economic theory, which forms a basis for the life proxy. We use cash flow patterns in the decline stage and compare the results with auditors’ opinions. The results indicate that cash flow patterns could predict financial distress companies in Iran. In addition, the effective cash flow patterns in predicting financial distress is more than auditors’ feedbacks.

This paper measures the likelihood of bankruptcy based on some financial ratios such as debt ratio, current ratio, sales to total assets, etc. using logistic regression and classification and regression tree techniques (CART). The proposed study gathers the information of 36 bankrupted firms and 36 non-bankrupted firms based on Tobin Q ratio. The study gathers the necessary information over the period 2005-2011. The preliminary results indicate that both methods have the capability to predict bankruptcy but with different accuracy. The likelihood of bankruptcy based on CART method were 97.2, 97.5 and 86.1 in the event of bankruptcy, one year before and two years prior to bankruptcy, respectively. These figures were changes to 98.6, 94.4 and 84.7 based on logistic method.