The Relationship between Performance Evaluation Criteria and Abnormal Stock Return

The main objective of this research is investigation and analysis of the relationship between abnormal stock return and some performance evaluation criteria in listed firms on Tehran Stock Exchange. Therefore the performance evaluation criteria as an independent variable and abnormal rate of return as a dependent variable are considered. The main idea to formulate the hypotheses is the existence of a significant relationship between the proposed performance evaluation criteria and abnormal rate of return. Required information is collected for the period 2006 to 2011. In order to test hypotheses، the multiple regression method is used. The results show، among all performance evaluation criteria، only the current ratio، quick ratio، percentage of debt to total assets، total asset turnover، total assets’ return، percentage of profit togross margin، percentage of operating profit to revenue، percentage of gross margin to revenue، P/E and P/B ratios،has a significant relationship with abnormal rate of return