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- Title
The Effects of Exchange Rate Volatility and Entry of Real Shareholders on the Return on Assets in the Food and Drink Companies of the Tehran Stock Exchange (Dynamic Panel Data Approach).
- Authors
Damankeshideh, Marjan; Safa, Fereshteh Shams; Afsharirad, Majid; Hadinejad, Manijeh; Asli, Alireza Daghighi
- Abstract
The food and drink industry is one of the main exporting sectors that has an important share in the capital market and a considerable role in stock market transactions via the collection of community micro-savings. Hence, the crucial aim of this article is to investigate the effects of nominal exchange rate volatility and entry of real shareholders on the return on assets (ROA) in the 44 food and drink companies of the Tehran stock exchange as an export-oriented companies during the period of 2011-2019. For achieving this, at first by using of Panel GARCH method, the nominal exchange rate volatility has been estimated and then, the impacts of this variable with other explanatory variables such as entry of real shareholders, profit margin, capital and interest rate to the operational profit, have been examined on return on assets in these companies. The empirical results of model estimation by GMM estimator revealed that the nominal exchange rate volatility has negative and entry of real shareholders has positive and significant effect on the return on assets. Moreover, the other explanatory variables like profit margin, capital and interest rate have positive, positive, and negative effects on the return on assets in mentioned companies. According to the results of this article, we can suggest that financial and economic policymakers with decreasing exchange rate volatility through control of domestic prices and capital market stabilization policies, motivate and stimulated real shareholders to enter the capital market and increase the production and profitability of food and drink companies.
- Publication
Financial Management Perspective / Chashm/&āz-i Mudīriyyat-i Mālī, 2022, Vol 12, Issue 39, p121
- ISSN
2645-4637
- Publication type
Article
- DOI
10.52547/JFMP.12.39.121