Impact of the economic crisis on financial performance and stock returns of companies

Document Type : Original Article

Authors

1 marand

2 MARAND

Abstract

Investors are always looking to increase their capital and are working to invest in companies that have higher returns and better financial performance, but in some cases financial performance of the company and its return on equity are under the economic crisis. Take up The present research studies the impact of the economic crisis on financial performance and stock returns of the companies. It is applied in terms of its purpose and the methodology of correlation is causal (post event). The statistical population of the study was all companies accepted in Tehran Stock Exchange. Using systematic elimination sampling, 110 companies were selected as research sample and studied in the period of 6 years between 1391 to 1396. Static software version 15 was used to test the research hypotheses and multiple regression with panel data model was used. The results of the research show that economic crisis has a reverse and significant effect on financial performance. Also, the impact of the economic crisis on eleven stocks is reversible and significant.

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