The Effect of Exchange Rate and Inflation on the Economic Performance of Selected Industries Stock –Iran

Abstract

The impact of macroeconomic variables (exchange rate, inflation, etc.) are active in the financial markets is considerable. Macroeconomic variables reflect the prosperity and economic success and to identify the fate of their investments. The study of these factors on the performance of companies is one of the most important actions to succeed in this market Economic. Economic Value added and refine economic value added is the most important economic performance measurement. Economic value added is the difference between the return on capital investment costs based on the adjusted book value and benefit. The difference between the return on capital and investment cost is measured based on the market value. In this study was to investigate the effect of the exchange rate and inflation on economic performance (EVA and REVA) for the period from (2001 to 2012) for the automotive industry, and cement. The panel data methods used are to hypotheses test. Data were collected annually by the “RahavardNovin” software and website of the Central Bank. The results show that the exchange rate significant impact on REVA and EVA but inflation has no significant on REVA and EVA The reasons for this lack of effect cannot be free to priced products from many industries and actual prices, Domestic support policies in industries like automobile, repair and maintenance costs of export-oriented industries, the inflation effect on many of the companies mentioned.
Keywords: Economic Value Added, Refine Economic Value Added, exchange rate, inflation, macroeconomic variables, economic performance variables.