Abstract
This study aimed to investigate the impact of seasonal fluctuations in annual and long-term inventory on stock returns of companies listed on the Stock Exchange in Tehran. A sample of 84 listed in the Tehran Stock Exchange, which their data for a period of 5 years (1388 to 1392) were the statistical analysis. Model study of research Steinker and Hoberg (2014) has been adapted where long-term stock return as the dependent variable is a function of the independent variables. The findings suggest that there is a significant relationship between annual and seasonal abnormal growth of inventory and long-term stock returns. This finding indicates that the capital market has reacted to inventory changes at different times. Based on the above results, it can be covered in the basic hypotheses accepted.
Highlights
Investors and financial analysts are seeking a good payoff through anticipating stock price trend in future by analyzing the financial statements
2-Abnormal growth of seasonal inventory To calculate the ABIQi,t variable, annual abnormal growth of inventory followed according to form of research Steinker and Hoberg (2014) and measured as follows: ABIi,t
Ret: annual return of company’s shares ABIQ: unusual changes in seasonal inventory of Company Beta: systemic risk index Size: the size of the company Market value to book value ratio (MTB): growth opportunities index Lev: financial leverage ROA: return on assets Statistical Society In this study to hypotheses testing classified and audited financial data of companies listed in Tehran Stock Exchange are used
Summary
Investors and financial analysts are seeking a good payoff through anticipating stock price trend in future by analyzing the financial statements. Lack of inventory makes that companies are unable to respond to their customers at the right time and that in the long run can lead to the loss of customers and reduce the profitability of the company. Since inventory is one of the most important items of current assets, given the absence of inflationary conditions, retention too much inventory can reduce internal efficiency. In countries such as Iran that there is a high inflation rate, it may not lead to lower rates of returns and eliminated loss of monetary items (Tribo, 2007)
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