2018 Volume 3 Issue 2 Supplementary
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THE RELATION BETWEEN SHAREHOLDERS PROFIT SHARING STRATEGIES AND FINANCIAL PERFORMANCE EVALUATION


Mahmood TAVASOLI1, Mohammad Ali MORADI2*, Habib PIRI3
Abstract

This study aims toward deliberation of the relation between Banks' financial function and the profit sharing policy in private banks accepted in the Tehran stock market. We considered the bank's financial function as the independent variable including Rate of return on assets; annual rate of return of the bank; economic value added; and market increase variables. Profit sharing policy was considered as the dependent variable. The statistical population was the private banks accepted in the Tehran's stock market consisting 22 banks. Study period was based from 2010 to 2015. Data collection method was library in the theoretical part. On the other hand, data of the hypothesis testing part was collected from financial statements and website of the Tehran stock market. Analysis method was consisted of correlation and multiple regression tests.  Theories were tested by Flymer and Watson camera test and multiple regressions. Results implicate that there is a direct and significant relation between profit sharing policy and annual rate of return and bank return of equity. Also, there was a significant reverse relation between profit sharing policy and Market's added value and economical added value.


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