International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Factors affecting the assessment of the acquisition performance of firms listed on the Tehran Stock Exchange using the generalized method of moments (GMM)

Document Type : Original Article

Authors
fatemeh dadbeh 1
Maryam Khalili Araghi 2
Hashem nikoumaram 3
1 Ph.D. student of financial management, Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
2 Assistant professor and faculty member of Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
3 Professor and faculty member of Faculty of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
10.30495/ijfma.2022.60573.1638
Abstract
Determining an effective approach to assessing portfolio performance is one of the most important modern topics in the field of investment management. Accordingly, evaluation criteria for an investment project cannot be selected only based on its high return. The models developed for evaluating portfolio performance in terms of both risk and return are not based on the fundamental approach to financial elements. Assessing the acquisition performance has been one of the most important issues in finance for a long time and many studies have developed models to determine the optimal portfolio. As the problems with these models have been detected over time, they have been replaced with new models. In this study, the generalized method of moments (GMM) was used to explore the factors affecting the portfolio performance of stock firms in terms of accounting and economic factors. The research sample included the most efficient firms listed on the Tehran Stock Exchange. The results of the study indicated that the economic approach is more efficient than the accounting approach with an explanatory rate of 0.82. Therefore, most investors consider the economic approach in their acquisition decisions.
Keywords
Portfolio Performance
Accounting Approach
Economic Approach
the Generalized Method of Moments (GMM)
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