Abstract

The present study deals with the evaluation of linear and non-linear relations between accounting variables and share return in automobile industry in Iran. The accounting variables under examination include three variables of operational profit, net profit and cash flows resultant from the operation. The regression analysis has also been used for testing the existence of a relation between variables and significance of measured linear and non-linear models. The results of the research express the existence of linear and non-linear relations between the accounting variables of share return of automobile industry. Of course, some of these models explain that this relation is better than other models, regardless of their test results. In other words, some of the models, such as exponential model and third-grade non-linear model are more capable of defining share return. Also, models without width from onset relative to models with width from the onset could explain share return better.

Key words: Accounting variables, share return, linear relation, non-linear relations.