*Corresponding author. E-mail addresses: d.ghodrati42@yahoo.com (H. Ghodrati) © 2014 Growing Science Ltd. All rights reserved. doi: 10.5267/j.msl.2014.2.010 Management Science Letters 4 (2014) 765–770 Contents lists available at GrowingScience Management Science Letters homepage: www.GrowingScience.com/msl An investigation on different factors influencing firm’s value: Evidence from Tehran Stock Exchange Hassan Ghodrati a* and Seyed Reza Ghazi Fini b a Associate Professor at Faculty of Accounting and Management, Kashan Branch, Islamic Azad University, Kashan, Iran b Accounting and Management, Kashan Branch, Islamic Azad University, Kashan, Iran C H R O N I C L E A B S T R A C T Article history: Received July 28, 2013 Received in revised format 20 November 2013 Accepted 4 January 2014 Available online February 10 2014 This paper presents an empirical investigation to evaluate the relationship among firms’ performances including cash, management efficiency and profitability. The proposed study considers eight components of current ratio, acid-test ratio, properties turnover, receivables collection period, earnings per shares, assets flow, return on assets and return on equities. The study selects some firms from Tehran Stock Exchange over the period 2007-2011. Using Spearman correlation ratio as well as regression technique, the study has determined that there was a weak and positive correlation between cash conditions and the firms’ value. In addition, there is a reverse relationship between receivables collection period and the firms’ value. The study has also found some weak relationship between firms’ value and other management efficiency components. Finally, the study has detected some weak and direct relationship between the profitability and firms’ value. © 2014 Growing Science Ltd. All rights reserved. Keywords: The value of the firm Profitability components Cash condition Management efficiency 1. Introduction The firm value is one of the most determinants of shareholder's wealth criteria used for management decision-making issues and it influences on the investor's behavior. Performance measurement of any financial firms plays an important role among most investors on making long-term financial decisions and it can be accomplished through various techniques such as econometric method, which investigates the relationship between firms’ financial performance and firm's value. One of the problems for this evaluation is the firm's value measurement, which is based on book-value, fair- value, equity etc. When the performance of various firms is compared, we need to consider firms’ characteristics such as technology, life cycle, etc. Therefore, it is sometimes a difficult task to measure the performance of the firms, properly and, in this paper, we look for measuring the fair- value of the firms without measuring the fair-value of firms’ assets by determining appropriate