Analyzing the effect of rating of liquidity, profitability ratios and dividend on performance of accepted investment companies in Tehran stock exchange

Abstract

Investment companies as one of the financial brokers have put into action the forming of the various and vast portfolio through selling their stocks. Their advantages include reduced investment risk due to a variety of stock basket and flexibility in decision-making due to possessing massive cash. These companies should consider elements, such as the power of liquidity, profitability ratios and dividend of the companies. The aim of this paper is analyzing the influence of those mentioned elements on the performance of the investor companies according to two indices of Sharp and Trainer. In achieving this goal, the factors such as risk, portfolio feedback, beta, liquidity rate, profitability ratios, dividend and the amount of Sharp and Trainer indices, were computed for companies’ portfolio and by using T-test and comparing the mean of two populations and regression, the hypothesis was being studied. The results of the study indicate that the liquidity rating was influenced on investment companies on the basis of Sharp, but profitability ratios and dividend have no influence on the performance of the companies. By reviewing the leaner connection between the efficiency portfolio of investment companies by the liquidity rating and profitability and dividend, the results were similar.