The most important decision criterion for the investors and creditors to select the most appropriate investment option are stock price and firm value. Given the high dependence of Iran's economy to the oil industry and oil export, which constitute large portion of Iran’s GDP, the purpose of this research is to study the impact of oil prices on the value of listed firms in Tehran Stock Exchange. In order to achieve this goal, a major hypothesis and three sub-hypotheses were formulated. To test the hypotheses, the Spearman’s correlation test was used. In this study, to measure the value of the firm, three indicators are used: Tobin’s Q, normalized price per share and the created value for shareholders. Target population of this study includes all listed companied in Tehran Stock Exchange. Using the systematic elimination sampling, 62 firms were included in the sample for this study. The research’s period is from 2003 to 2013. About the impact of oil prices on the value of the firm, results of Spearman’s correlation test does not confirm significant effect of oil prices on firm value. Based on Tobin’s Q, oil prices was not influential on 12 industries of 16 industries and 34 firms of 62 firms. Based on normalized price per share, oil prices was not influential on 1 industry of 16 industries and 8 firms of 62 firms. Based on the created value for shareholders, oil prices was not influential on 2 industries of 16 industries and 8 firms of 62 firms.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
