In this paper, we examine the relationship between inflation rate and profitability ratios in the
top 36 companies in the Tehran Stock Exchange (TSE). The study uses historical data over the
period 2005-2010 and using linear regression methods examines different hypotheses. The main
idea of the proposed hypotheses is that there is a significant relationship between the inflation
rate and profitability ratios, and the results confirm the significant relationship between the
inflation rate and profitability ratios such as return on assets (ROA) ratio, return on equity
(ROE) ratio, gross profit as well as net profit ratio. There is no significant
correlation, however, between these two variables in past and future periods.
کلید واژگان :
Inflation rate, Return on equity, Return on assets, Net profit ratio, Gross profit ratio
