The Effect of Beta Risk Control on the Relationship between Corporate Value and Profit Components in Companies Admitted to the Tehran Stock Exchange (TSE)

The purpose of research is to study the effect of beta risk control on the relationship between company value and components of profits in companies admitted to the Tehran Stock Exchange. To this end, the effect of beta risk control on the explanatory power of the relationship between profit and return has been investigated. To test the effect of risk control on the power of regressions, the observations are sorted according to various risk criteria. To this purpose, 128 companies from among the companies admitted in the Tehran Stock Exchange between 2011 and 2016 were selected as samples. Regarding the target type, this is applied research and in terms of content and nature, the research method is a correlation. In this research, a multiple regression model was used to estimate the results. The research findings showed a significant difference in the explanatory power of the profit-return regression equation before and after beta control because the increase in the coefficient of determination is 4%, which is significant.