Factors Affecting the Decision to Revaluation of Assets in Listed Companies of Tehran Stock Exchange (TSE)

This study investigated factors affecting the decisions made by companies’ management staff to perform the revaluation of fixed assets according to the approval of the executive bylaw of Part “B”, Section “78” of 2011 National Budget Act in Iran. Five hypotheses were examined in this study. Due to the limited number of active companies in Tehran Stock Exchange (TSE) organization which were done the revaluation of their assets based on the above mentioned by law, the statistical sample in this study included 45 companies (15 companies which evaluated their assets and 30 companies which did not). This was a correlation-descriptive research in which data were extracted from the financial statements of companies and the final analysis was done using the logistic (Logit) regression. Data were analyzed for 2011 as the year in which the revaluation has occurred in order to estimate the regression coefficients. Results demonstrated a significant relationship between the revaluation of assets with the ratio of total debt (RTD), operating cash flow (OCF), and natural logarithm of total assets (NLTA) before performing the revaluation and changes in fixed assets (CFA) of the companies.