Scienceline Publications Journal of Educational and Management Studies 2322-4770 6 4 2016 December Exchange Rate and Financial Performance of Listed Companies on Tehran Stock Exchange 73 81 http://jems.science-line.com/attachments/article/40/J.%20Educ.%20Manage.%20Stud.,%206(4)%2080-88,%202016.pdf EN Abolfazl Ghadiri Moghadam1 PhD, Hakiman Institute of Higher Education; Bojnourd, Iran Mahdi Filsaraei Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran Shima Namdari MA of Accounting, Hakiman Institute of Higher Education; Bojnourd, Iran Najmeh Ghelichi Moghadam MA of Accounting, Hakiman Institute of Higher Education; Bojnourd, Iran Hamideh Alizadeh MA of Accounting, Hakiman Institute of Higher Education; Bojnourd, Iran Nowadays, the increasing importance of capital and efficient markets is absolutely undeniable in the allocation of resources and encouraging investors in productive sections of economy. Empirical studies indicate that rate fluctuations level can significantly affect a firm’s financial variables. Due to the importance of exchange rate, the present study aims to assess the effect of exchange rate fluctuations on the variables of sale, product cost, and gross profit of listed companies on Iran Stock Exchange. Needed data has been seasonally collected from financial statements over a period from 2010 to 2013. Descriptive and inferential statistics such as correlation analysis have been applied to analyze collected data. The achieved findings demonstrate that the percentage of changes in exchange rate (dollar and euro) brings about more changes in sale and gross profit, while makes no changes in product cost of the sold products. Results of testing first and second hypotheses show a direct positive relationship between exchange rate fluctuations (dollar and euro) and sales changes. Thus, first and second hypotheses are confirmed. Moreover, the achieved findings indicate that exchange rate fluctuations do not affect product costs; therefore, third and fourth hypotheses are rejected. Testing fifth and sixth hypotheses also demonstrates that exchange rate fluctuations and gross profit changes are directly and positively associated. As a result, these two hypotheses are accepted. Foreign Currency Exchange Rate Leverages Product Cost Gross Profit