Studying the Return of value and Growth Stock Based on the ratio of Book Value/MARKET Value (Case: Publicly Traded Companies)

Subject Areas : Journal of Investment Knowledge

Ameneh Banaizadeh ¹ (Master Student of Financial management, Islamic Azad University, Qeshm Branch)
Hamidreza Kordlouie ² (Ph. D. Holder in Finance, Islamic Azad University, Eslamshahr Branch)

Received: 2013-01-29 Accepted : 2013-05-20 Published : 2013-05-20

Keywords: value stocks, growth stock, Book Vaue/Market Value Ratio, Return,

Abstract :

Aim of this research is the survey of role, amount and sort of relation between variables such as ratio of book value to market value, different returns and also study of dfference between value stocks and growth stocks at Tehran stock exchange. Time period is 6 years, since 2007 to 2012, and 88 publicly traded companies were chosen. To test hypotheses, static panel data and generalized least squree were chosen. Results in minor group that, the relation between B/M ratio and cash return is negative, meanwhile the relation between aforementioned ratio and total return and also capital return are positive. In major group results show that, there is higher return for growth stock retun in comparison to value stock return. It also shows that the relations are similar to minor group.