Investigation the Relationship between Performance Evaluation Criteria and Corporate Value

According to modern financial theories, there is a relationship between performance and corporate value. Companies that offer optimum performance and optimally utilize the resources at their disposal are of greater value and thus have the potential to increase the wealth of owners. Therefore, the present study aimed to investigate the relationship between performance evaluation criteria (efficiency) and corporate value. For this purpose, a sample of 92 companies listed in Tehran Stock Exchange form 1380 to 1391 was analyzed. In order to test the hypotheses of this study, a multiple regression and Stepwise regression were used.. The results indicated that there was a direct relationship between corporate value and performance criteria; in other words, the companies which have more appropriate financial ratios and have optimum performance in this regard are deemed to have greater value. Besides, the results revealed that there was a greater correlation between corporate values and some criteria such as return on assets, cash flow per share, earnings per share, return on sales and sales growth. Hence, it can be declared that these criteria offer more information for decision-makings.