Performance appraisals of ICT companies in the Tehran stock market: contradiction with the global trend

Figures & data

Figure 1. Changes in the Tehran Stock Index over the six years from 21 March 2007 to 19 March 2012 at current prices. Source: Authors’ calculations, adapted from http://www.iranbourse.com.

Figure 2. Percentage of venture capital investments. Source: Gaba & Meyer, 2008.

Figure 3. Stock price indices of ICT sectors. Source: Qiao et al., 2008.

Table 1. List of Companies operating in the ICT industry in the Tehran Stock Exchange.

	Company Name	Symbol	Field of Activity	website
1	Iran Argham	IAGM1	Informatics hardware production	iranargham.com
2	Information Services	INFO1	ICT services to financial institutions	isc.co.ir
3	Parsian Ecommerce	EPRS1	E-Card services	pec.ir
4	Data Processing of Iran	DADE1	Provide all the hardware and software services	dpi.ir
5	Iran telecommunication Factories	KMOA1	Manufacturer of fixed and mobile stations	itmc.ir
6	Payam Industries	PYAM1	Audio and Video Production and Distribution	payam.co.ir
7	Pars Electric	PELC1	Audio and Video Production and assembly	parselectric.com
8	Iran telecommunication Co.	MKBT1	Creation and distribution of communication services	tci.ir

Source: Authors’ calculations, adapted from http://www.iranbourse.com.

Table 2. Kolmogorov–Smirnov test results.

	INFO1	PELC1	MKBT1	PYAM1	KMOA1	DADE1	IAGM1	EPRS1
N	1,042	781	866	60	914	1182	1090	134
K-S Z	10.59	10.25	6.47	3.69	7.65	5.33	7.25	2.86
Asymp. Sig. (2-tailed)	0.000	0.000	0.000	0.000	0.000	0.000	0.000	0.000

Source: Authors’ calculations.

Table 3. Runs test results.

Company Name	Total Cases (N)	Number of Runs (R)		Number of Expected Runs (m)		Z
		First method	Second method	First method	Second method	First method	Second method
INFO1	1042	330	229	683	451	-23.38	-15.94
PELC1	781	213	161	517	315	-23.19	-13.73
PYAM1	60	13	13	28	18	-5.39	-2.21
KMOA1	914	288	234	610	373	-22.57	-11.31
DADE1	1182	391	339	743	584	-22.05	-14.50
IAGM1	1090	364	300	718	506	-22.82	-13.46
EPRS1	134	48	37	74	63	-5.10	-4.83
MKBT1	865	257	210	559	386	-22.02	-13.45

Source: Authors’ calculations.

Table 4. Rate of growth indices related to profitability.

	Sale	NIS	ROA	ROE	EPS	P/E
Annual rate of growth	-0.0888	-0.0778	-0.1877	-0.1588	-0.5921	-0.4467

Source: Authors’ calculations.

Table 5. Degree of diversification and criteria's weights.

	NIS	ROA	ROE	EPS	P/E
Entropy (E)	0.90787	0.94793	0.98398	0.90321	0.97933
Degree of Diversification (d)	0.09212	0.05206	0.01601	0.09678	0.02066
Criteria's weight (W)	0.33177	0.18753	0.05768	0.34858	0.07442
			K= 0.3529561

Source: Authors’ calculations.

Table 6. The final score for each industry.

Rank	Industry	Score	Rank	Industry	Score
1	Metallic mineral	0.88008	10	Foods except sugar	0.24164
2	Chemical	0.66738	11	Vehicle and Parts Manufacturing	0.22416
3	Pharmaceutical	0.58810	12	ICT	0.19139
4	Cement	0.57803	13	Metal products	0.07869
5	Petroleum	0.51662	14	Machinery	0.07827
6	Sugar	0.45713	15	Tiles and ceramics	0.07527
7	Technical and Engineering	0.43875	16	Rubber	0.06930
8	Electrical devices	0.32333	17	Non-metallic mineral	0.05207
9	basic metals	0.27247

Source: Authors’ calculations, adapted from companies listed in the Tehran Stock Exchange, 2015.

Gaba, V., & Meyer, A. D. (2008). Crossing the organizational species barrier. Academy of Management Journal, 51, 976–998.10.5465/AMJ.2008.34789671

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Qiao, Z., Smyth, R., & Wong, W. K. (2008). Volatility switching and regime interdependence between information technology stocks 1995–2005. Global Finance Journal, 19, 139–156.10.1016/j.gfj.2008.01.003

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