Investigating the relationship between strategy levels and financial performance in companies listed on the Tehran Stock Exchange

The purpose of this study was to investigate the relationship between business strategies including cost leadership and product differentiation strategy with financial performance in companies listed on the Tehran Stock Exchange experimentally. The differentiation strategy is measured by the ratio of R&D cost to sales and the cost leadership strategy is measured by the ratio of sales to total assets, and financial performance is measured using the rate of return on equity. also, financial leverage, asset return, sales growth and company size as control variables were included in the research model. The research sample includes 110 companies in the period from 2013 to 2020. The test results using combined regression indicate that there was a significant relationship between both differentiation strategy and cost leadership with financial performance, so that the relationship between differentiation strategy and rate of return on equity is negative and significant and the relationship between cost leadership strategy and The rate of return on equity has been positive and significant.