Modeling Factors Affecting the Gap between the Book Value and the Market value of the Tehran Stock Exchange Firms

We can consider the book value of a firm as a beginning point in valuation, and after it is affected by many various factors, we could reach to the market value of the firm that is observable and can be measured. In this research by focusing on accounting, finance and economics in Iran, we try to reach an integrated model that could explain factors of each domain that affect the gap between the book value and the market value of the Tehran Stock Exchange firms. In this research, we interview 16 experts in accounting, finance and economic domain in Iran. Using grounded theory, we obtain a qualitative model of factors that affect the gap between the book value and the market value of the Tehran Stock Exchange firms. Encouraging indirect investments in capital market, application of IFRS Standards, optimal use of liquidity available, are among the accomplishments of this research that help to change the gap between the book value and the market value of the Tehran Stock Exchange firms