the factors effect on profitability of companies accepted in tehran stock exchang (tse)

this paper studies the effects of six factors including industry type size age ratio of capital to total assets ratio of debts to assets and advertising costs on profitability of com companies accepted in tse. profitability is defined at the three standard levels of roa roat and roe. the sample used in this research belong to the companies which are accepted in tse vy feb. 2001 and they maintained their membershipe in tse during the period of this research. multiple regressions with dummy variable are used to test the hypotheses. findings indicate that if the three criterias of profitability roa roat and roe are defined then size ratio of capital to total asset and ratio debts to assets can affects the profitability of the company but industry type company age and advertising cost have no affect on its profitability. morever if the criteria of rate of return on capital istaken into account industry type and size of company will affect the profitability of company but age the ratio of capital to total assets the ratio of debt to total assets and advertising costs have no effect on its profitability. jel classification: r53 m41 g31 g21