International Science Community Association Research Journal of Recent Sciences 2277 - 2502 3 9 2014 September 2 The Relationship between Return on Equity and Investment Opportunities of the Firms Listed in Tehran Stock Exchange 10 14 EN Yasrebdoost Hadi 1 Management Dept, Tabriz Branch, Islamic, Azad University, Tabriz, IRAN SarbazyMoghadam Saeid 2 SalmaGhassem Bagloo 3 Hassanpoor Davood 1 Department of Accounting, Faculty of Management and Accounting, Gilan Science and Research Branch, Islamic Azad University, Gilan, IRAN Pourali MohammadReza 2 > Research Paper 2013 8 26 2014 September 2 As all man-made phenomena, businesses and organizations have a life cycle. Investment opportunities have different life cycles during different steps. A highly flexible firm to take advantage of these opportunities expects a clear vision of the future. An effective strategy to provide investment opportunities is to use appropriate dividend policies. The present study establishes a relationship between ROE and investment opportunities. Participants include firms listed in TSE during 1385-1389. Regression analysis is used to test hypotheses. Results suggest a high correlation between variables. Ratios between book value of fixed assets to their market value, market value of common stock to its book value and earnings per share to price per share positively and significantly influence on ROE of the firms listed in TSE. Statistical tests are used to analyze data by Eviews software. Copyright@ International Science Community Association