Authors : Saman Sheikhmoradi and Parastoo Sedaghat
Abstract: The objective of the present study is to determine the economic value by using residual income formula of listed companies in Tehran Stock Exchange, so residual income is the measure of performance. The results of the hypothesis testing indicate that a significant difference between residual income and value of the firm is observed. In this study, the market value added changes criterion has been used to measure the value of the company. For this purpose, 121 companies have been selected from Tehran Stock Exchange through screening technique during a 7 years period from 1386-1392. The data has been collected through the companies’ financial statements published on the Tehran Stock Exchange site. For data analysis, multivariate regression analysis has been used. The results obtained from hypothesis test indicate that no significant difference has been observed between free cash flow and the company’s value. The results show that residual income can be used to determine the value of listed companies in Tehran Stock Exchange.
Saman Sheikhmoradi and Parastoo Sedaghat, 2016. Valuation of Value by Using the Residual Income (RI) Approach of the Listed Companies in Tehran Stock Exchange. International Business Management, 10: 6286-6292.