The Study of Accumulated Depreciation and Stock Prices in Iranian Industries

Abstract

The study of relationships between accumulated depreciation expense and stock prices, is the subject which has been always considered by financial field researchers. The purposes of present study are providing the required information for decision making and in order to accessing this subject, disclosure of financial information is necessary. In this study the relation between accumulated depreciation expense and stock prices has been considered. The statistical society of this study has been conducted in eight Iranian industries of 800 observation which are the companies that are listed at Tehran stock exchange, for a period of 6 years from the April 2008 till the end of March 2013. To answer the question: Whether accumulated depreciation of assets affects the stock price?This study includes of a hypothesis, that whether accumulated depreciation of assets affects the stock price. The available information in Tehran stock exchange has been applied for accounting the hypothesis variables. Regression and analysis of the combined data (panel data) correlation coefficient has been used for hypothesized experiment. According to data of study, the hypothesis experiment has been rejected in reliance level %95. This conclusion has been resulted that there is no significant relation between accumulated depreciation expense and stock prices.