The relationship between the Foreign Currency Translation Adjustment (FCTAs) and investor decisions in Tehran Stock Exchange (TSE)

This paper is about the relationship between the Foreign Currency Translation Adjustment (FCTAs), per-share values, and their impacts on investors’ decisions. For this study, one hypothesis has been proposed and data analysis was performed through panel data techniques. The sample consisted of 64 companies listed in Tehran Stock Exchange (TSE) in the period of 2006–2011. All of these companies had foreign exchange trading and therefore they have been reported profit and loss of foreign currency translation. The research hypotheses were analyzed by using the regression panel data methods and Eviews7 software. The results indicate that there is a direct and significant relationship between the foreign currency translation adjustment and per- share values leading to changes in supply and demand in stock markets. Therefore, this kind of information is directly related to the decisions of investors and has information content.