aDepartment of Accounting, Omidiye Branch, Islamic Azad University, Omidiye, Iran
bDepartment of Accounting, Ramhormoz Branch, Islamic Azad University, Ramhormoz, Iran
Online published on 20 February, 2014.
This research deals with the relation between the growth rate of total assets, the growth of current and non-current assets and the changes of working capital with the efficiency of stocks. The timeframe of this study is from 2007 to 2011 that, regarding the limitations of selecting companies, a number of 136 companies are selected for the hypotheses test. Prior to testing the hypotheses, it is dealt with the test of Variance anisotropy that the result confirms the efficiency the research models. For fitting of the best model of compositional data, Chow and Hausman Test are used. The first model of the research is done by use of common effects data that the result shows that there exists a significant and positive relation between the growth of assets and stocks efficiency. Consequently, raise in the growth rate of assets draws the market's attention and triggers its positive reaction, and this fact should be taken into consideration by managers. The second model demonstrates that there exists a significant and positive relation between the growth of current assets and the stocks efficiency and a positive but insignificant relation between the growth of the non-current assets and the stocks efficiency. Finally, the third model demonstrates that there exists a significant and positive relation between the changes of working capital and stocks efficiency.
Growth of Assets, Growth of the Current Assets, Growth of the Non-Current Assets, Changes in Working Capital, Stocks Efficiency
