Document Type : case-study

Authors

• Mohammad Reza Mehrabanpour ¹
• Haider Rabiei ²

¹ Assistant Professor, University of Tehran Faculty member of Tehran University

² Professor at the University of Tehran and financial, economic and investment strategies consultant

Abstract

The growth of corporate assets indicates an increase in the volume of assets in the current year compared to the previous year. Studies have shown that in the capital markets of developed countries, investors, while seeking to preserve their capital, seek to earn a profit commensurate with the level of risk. The growth in the items on the right side of the balance sheet contains messages for investors and shareholders. One of those messages is the existence of growth opportunities in the future, although this message must be carefully examined and evaluated. . Management discretion and increased investment also increase the company's profitability. Over time, this leads to the growth of assets and a decrease in investment returns in the future, because investing in such companies is associated with a decrease in risk and, naturally, a decrease in the expected return of investors. This article discusses the reaction of investors to the growth of assets and interprets the behavior of investors and shareholders according to several theories.

Keywords

• Asset growth
• investors
• decision making

Main Subjects

• Accounting
• Audit
• Financial Management
• Financial Engineering