The association between investment opportunity set and income growth of accepted firms in Tehran Stock Exchange (TSE)

This study is conducted to provide evidences for investment opportunity set and income growth. The samples of the study consisted of 70 firms listed in Tehran Stock Exchange over a 5-year period. For investment opportunities, three variables including the ratio of book to market value of equity, book value of long assets to market value of assets and earnings per share to price ratio are used. Using statistical methods including principal components of the correlation matrix and Pearson's linear correlation coefficients, it was concluded that there is a significant relationship between investment opportunity and income growth.