Assessment of Relationship between Market Anomalies and Investors’ Decisions : Evidence from Tehran Stock

This study aimed to assess the relationship between market anomalies and investors' decisions. To this end, using correlation and regression analyses, the impact of market anomalies indices in a prevailing approach, the stock price to earnings (P/E) ratio, operating cash flow to price ratio and accruals to investors' decisions ratio were assessed and measured in six hypotheses based on two criteria of investment in workforce and investment in capital assets. The results obtained from testing the hypotheses by investigating 75 companies listed in Tehran Stock Exchange during 2009-2013 revealed that there was no relationship between P/E ratio and accruals indices with investing in the workforce; but presence of a relationship between operating cash flow to price ratio and investment in workforce was confirmed. Also, the association between two indices of stock price to earnings ratio and operating cash flow to price ratio with investments in capital assets was confirmed. However, no significant relationship was found between accruals and investment in capital assets