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Growing Science » Management Science Letters » Investigating banks’ financial structure on profitability and price volatility of banks’ shares: Evidence from Tehran Stock Exchange

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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 4 Issue 10 pp. 2221-2228 , 2014

Investigating banks’ financial structure on profitability and price volatility of banks’ shares: Evidence from Tehran Stock Exchange Pages 2221-2228 Right click to download the paper Download PDF

Authors: Zeinab Mirzaei, Mohsen Hamidian, Mohammad Khodaei Valahzaghard

Keywords:

Abstract: This paper presents an empirical investigation to study the relationship between financial structure on profitability and price volatility of banks’ shares, which are operating in Iran. The proposed study considers the information of 21 Iranian banks over the period 2006-2012. Using some regression techniques, the study has determined that there was a negative relationship between leverage and return on assets but there was not any meaningful relationship between leverage and price volatility when the level of significance is five percent. In addition, the study has determined that there was a positive relationship between equity ratio and return on assets and there was a positive relationship between equity ratio and price volatility when the level of significance was five percent.

How to cite this paper
Mirzaei, Z., Hamidian, M & Valahzaghard, M. (2014). Investigating banks’ financial structure on profitability and price volatility of banks’ shares: Evidence from Tehran Stock Exchange.Management Science Letters , 4(10), 2221-2228.

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Journal: Management Science Letters | Year: 2014 | Volume: 4 | Issue: 10 | Views: 2763 | Reviews: 0

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