Investigating the effects of global financial crisis on stock price and operating profit: Evidence from Tehran Stock Exchange

In some decades, capitalism countries have suffered from financial crises and the financial crises have created economic recession started from the country of origin and distributed to other counties. The purpose of this paper is to study the global financial crisis effects on the stock price as well as operating profit of some listed companies in Tehran Stock Exchange(TSE). This research shows the difference between operating profit and the price of the products of the firms before and after the global financial crisis. The aim of this research is to study the effects of the global financial crisis on 133 TSE firms over the period 2004-2011 by considering two periods: Before/after crisis, i.e. 2004-2008 and 2008-2011. The results of testing different hypotheses show that there was a significant difference between the operating profit and the stock price of the firms before and after the global financial crisis on the different industries of the Iranian companies.

Abstract licence: CC BY

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