Salience Theory and Pricing Stock of Corporates in Tehran Stock Exchange

Advances in Mathematical Finance and Applications

مقاله 1، دوره 3، شماره 4، اسفند 2018، صفحه 1-16   

نوع مقاله: Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2019.577140.1120

نویسندگان

Parvaneh Khaleghi^{* 1}؛ Mohammadali Aghaei²؛ Farzin Rezaei³

¹Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran

²Department of Accounting, Tarbiat Modares University, Tehran, Iran

³Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran

چکیده

How the investors react to the received information plays a crucial role in determining the return of stock exchange market. Supply and demand based upon incorrect decisions lead to the price deviation of inherent values. This paper aims to study the impact of salience phenomenon on disproportionate pricing and investor overreaction in the corporates in Tehran stock exchange. Research methodology is correlative. Statistical sample involves 120 corporates accepted by Tehran stock exchange during 2012-2016. To test the hypotheses, a regression analysis method has been selected. Research findings have indicated that there exists a promising phenomenon in Tehran stock exchange causing the investors overreaction followed by the disproportionate pricing and also, the results have shown that the impact of salience is different on strong and weak information environments.

کلیدواژه‌ها

Under risk selection؛ Salience؛ Disproportionate pricing؛ Overreaction

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