Asian Journal of Research in Business Economics and Management

  • Year: 2014
  • Volume: 4
  • Issue: 5

Studying the effect of Economic Sanctions on the Stock Price and the Operating Profit of Companies Accepted in Tehran's Stock Exchange

  • Author:
  • Ahmad Sarlak, Nahid Rezaei
  • Total Page Count: 9
  • DOI:
  • Page Number: 274 to 282

Department of Accounting, Arak Branch, Islamic Azad University, Arak, Iran

Abstract

This study is aimed at studying the effects of economic sanctions on the financial statements of companies accepted in Iran's Stock Exchange. This study investigates the difference in the stock price and the operating profit of companies accepted in Iran's Stock Exchange before and after the economic sanction years. The research method is that of correlation and in general, 144 companies from different industries have been selected in the systemic omission method between the years 2006 and 2011. All research hypotheses were separately examines. The research findings show that the stock price decreases in small companies after the economic sanction, and it increases in big companies after the economic sanction. The operating profit decreases in big and small companies after the economic sanction.

Keywords

Information asymmetry, stock price, economic sanction, operating profit