A Study of the Relationship between Change in Productivity indices and Change in Financial Variables among Accepted Companies in Tehran Stock Market

Productivity is one of the most important objectives of organizations and institutes in recent world. Increasing the productivity level can guarantee the stage development of organization in the competitive market. Productivity as a prominent index determines accurately the efficiency of labor power, investment and other resources of an organization. It also shows a clear situation of the company in the future. A company can achieve sustainable profits in the future if it does not ignore the productivity issue. The aim of this study is to determine if there is any significant relationship between Change in Productivity indices (labor and capital productivity) as independent variables and change in financial variables (profit of each portfolio, Book value of portfolio, Market portfolio value) as dependent variables. To do so, 102 companies accepted in Tehran Stock Market were selected based on screening (systematic deletion) in a five-year period between 2004-2009. The required data were gathered from basic financial statement, committee reports, and other available documents in Tehran Stock Market. Step by step regression and Pearson correlation were used to analyze the data. The results of the study revealed that there is a significant relationship between the variables.