Abstract

Opportunities for investment growth make up for an important part of the company's value with a positive effect on future investment opportunities of the company, which is one of the factors affecting the decisions related to the distribution of profits and returns in companies. Thus, the purpose of this paper was studying the effect of investment growth on the relationship between profit and current value of each share at different levels of profitability. The population was all listed companies in Tehran Stock Exchange with 80 companies selected as the sample during the period 2012-2016. Univariate and multivariate regression analyses were used to test the hypotheses, and Eviews software was used for data analysis. The findings indicated that in companies with high profitability, investment growth positively and significantly affects the relationship between profit and current value of each share. Moreover, the results showed a positive and significant correlation of current value with stock returns in spite of growth opportunities.