The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycle
Capital productivity concerns the measurement of management power in making optimal use of capital as one of the important and limited company resources. In companies with highly efficient capital productivity, stocks are expected to offer higher returns and the explanatory power of the models propo...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
Islamic Azad University, Tabriz Branch
2020-03-01
|
| Series: | مدیریت بهره وری |
| Subjects: | |
| Online Access: | http://jpm.iaut.ac.ir/article_671975_1efe39fa71583dac8292c1e916d1ac2a.pdf |
| _version_ | 1818319476092829696 |
|---|---|
| author | ali alimohammadpour ali zabihi khosro Faghani Makrani |
| author_facet | ali alimohammadpour ali zabihi khosro Faghani Makrani |
| author_sort | ali alimohammadpour |
| collection | DOAJ |
| description | Capital productivity concerns the measurement of management power in making optimal use of capital as one of the important and limited company resources. In companies with highly efficient capital productivity, stocks are expected to offer higher returns and the explanatory power of the models proposed to predict stock returns is assumed to increase. The purpose of this study was, thus, to examine the extent to which capital productivity might influence the explanatory power of stock market predictive models and to scrutinize this viable effect at various stages of corporate life cycle. The Operating Profit Ratio (ROIC) was used to operationalize Capital productivity, the Tripartite Factor Model (Fama & Franch, 1993) and the Pentagonal Factor Model (Fama & Franch, 2013) were employed to predict stock returns and corporate life cycle was categorized via the Dickinson Cash Flow (2011). The research sample comprised 110 companies with specific descriptive characteristics selected from among all those listed on the Tehran Stock Exchange during a ten-year period from 2005 to 1394. The results of the hypothesis testing analyses demonstrated that capital productivity affects the relationship between market factor and risk-free growth at all stages of the life cycle, but size was found significantly correlated with risk merely at the maturity stage of the life cycle. |
| first_indexed | 2024-12-13T10:09:43Z |
| format | Article |
| id | doaj.art-ad8cacf064ed4ff8b15d5de4fa427ce8 |
| institution | Directory Open Access Journal |
| issn | 2716-9979 2476-7298 |
| language | fas |
| last_indexed | 2024-12-13T10:09:43Z |
| publishDate | 2020-03-01 |
| publisher | Islamic Azad University, Tabriz Branch |
| record_format | Article |
| series | مدیریت بهره وری |
| spelling | doaj.art-ad8cacf064ed4ff8b15d5de4fa427ce82022-12-21T23:51:28ZfasIslamic Azad University, Tabriz Branchمدیریت بهره وری2716-99792476-72982020-03-01141(52)بهار17119410.30495/qjopm.2020.671975671975The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycleali alimohammadpour0ali zabihi1khosro Faghani Makrani2PhD student, Department of Accounting, Sari Branch, Islamic Azad University, Sari, Iran.Assistant Professor, Department of Accounting, Sari Branch, Islamic Azad University, Sari, IranAssociate Professor, Department of Accounting, Sari Branch, Islamic Azad University, Sari, IranCapital productivity concerns the measurement of management power in making optimal use of capital as one of the important and limited company resources. In companies with highly efficient capital productivity, stocks are expected to offer higher returns and the explanatory power of the models proposed to predict stock returns is assumed to increase. The purpose of this study was, thus, to examine the extent to which capital productivity might influence the explanatory power of stock market predictive models and to scrutinize this viable effect at various stages of corporate life cycle. The Operating Profit Ratio (ROIC) was used to operationalize Capital productivity, the Tripartite Factor Model (Fama & Franch, 1993) and the Pentagonal Factor Model (Fama & Franch, 2013) were employed to predict stock returns and corporate life cycle was categorized via the Dickinson Cash Flow (2011). The research sample comprised 110 companies with specific descriptive characteristics selected from among all those listed on the Tehran Stock Exchange during a ten-year period from 2005 to 1394. The results of the hypothesis testing analyses demonstrated that capital productivity affects the relationship between market factor and risk-free growth at all stages of the life cycle, but size was found significantly correlated with risk merely at the maturity stage of the life cycle.http://jpm.iaut.ac.ir/article_671975_1efe39fa71583dac8292c1e916d1ac2a.pdfcapital asset pricingcapital productivity managementcorporate life cycleexplanatory predictive powerstock return |
| spellingShingle | ali alimohammadpour ali zabihi khosro Faghani Makrani The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycle مدیریت بهره وری capital asset pricing capital productivity management corporate life cycle explanatory predictive power stock return |
| title | The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycle |
| title_full | The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycle |
| title_fullStr | The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycle |
| title_full_unstemmed | The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycle |
| title_short | The Effect of Capital Productivity Management on Capital Asset Pricing Models with a Focus on Life Cycle |
| title_sort | effect of capital productivity management on capital asset pricing models with a focus on life cycle |
| topic | capital asset pricing capital productivity management corporate life cycle explanatory predictive power stock return |
| url | http://jpm.iaut.ac.ir/article_671975_1efe39fa71583dac8292c1e916d1ac2a.pdf |
| work_keys_str_mv | AT alialimohammadpour theeffectofcapitalproductivitymanagementoncapitalassetpricingmodelswithafocusonlifecycle AT alizabihi theeffectofcapitalproductivitymanagementoncapitalassetpricingmodelswithafocusonlifecycle AT khosrofaghanimakrani theeffectofcapitalproductivitymanagementoncapitalassetpricingmodelswithafocusonlifecycle AT alialimohammadpour effectofcapitalproductivitymanagementoncapitalassetpricingmodelswithafocusonlifecycle AT alizabihi effectofcapitalproductivitymanagementoncapitalassetpricingmodelswithafocusonlifecycle AT khosrofaghanimakrani effectofcapitalproductivitymanagementoncapitalassetpricingmodelswithafocusonlifecycle |