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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Investigating the Role of Institutional Intermediary Variable in Explaining the Relationship between Firm Value and Profit Quality in Listed Firms in the Tehran Stock Exchange

Ahmad KAABOMEIR, Abdolnabi ALBOGHOBEISH, Hamidreza TAHERI

http://dx.doi.org/10.6007/IJARAFMS/v7-i4/3509

Open access

The goal of this study is to investigate the relationship between firm value and profit quality considering the role of mediator of institutional ownership in listed firms on Stock Exchange. In this study, to measure and evaluate the quality of profit, according to Laurie and Jenkins (6002) and Wang (2006), also the ownership of investors categorize at three levels: high, medium and low. The research population of this study is the listed firms on Tehran Stock Exchange and the statistical sample includes 222 companies in the period from 2009 to 2013. Investigating the relationships between variables after controlling the company's specific features has done by using multiple linear regressions and the panel method. The results of the research show a significant relationship between the firm's value and the quality of profit that by increasing investor ownership, a stronger relationship established between firm value and profitability.

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