Journal of Commerce and Accounting Research

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Effective Factors of Price Bubble in Tehran Stock Exchange


Affiliations
1 Department of Accounting, Science and Research Branch, Islamic Azad University, West Azarbyjan, Iran, Islamic Republic of
2 Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran, Islamic Republic of
     

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The aim of this study is to investigate effective factors of price bubble in Tehran Stock Exchange. In order to achieve this objective, 92 companies during the 5-year period from 2006 to 2010 are studied. Predicted income, industry characteristic, ownership structure and dividends are considered as effective factors on price bubble and so independent variable and price bubble are regarded as dependent variable. To test the hypotheses, multivariate regression model is used. The results indicate that predicted income and dividend are effective factors on price bubble. The relationship between predicted income and dividend with price bubbleis positive and significant showing that increasing dividend and predicted income leads to price bubble. The results also highlights that there is not a significant relationship between industry characteristic, ownership structures with price bubble. These results indicate that firm’s behavioural factors are effective factors on price bubble.

Keywords

Predicted Income, Industry Characteristic, Ownership Structure, Dividends, Price Bubble.
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  • Effective Factors of Price Bubble in Tehran Stock Exchange

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Authors

Hamed Akbari
Department of Accounting, Science and Research Branch, Islamic Azad University, West Azarbyjan, Iran, Islamic Republic of
Saeid Jabbarzadeh Kangarlouei
Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran, Islamic Republic of
Morteza Motavassel
Department of Accounting, Science and Research Branch, Islamic Azad University, West Azarbyjan, Iran, Islamic Republic of

Abstract


The aim of this study is to investigate effective factors of price bubble in Tehran Stock Exchange. In order to achieve this objective, 92 companies during the 5-year period from 2006 to 2010 are studied. Predicted income, industry characteristic, ownership structure and dividends are considered as effective factors on price bubble and so independent variable and price bubble are regarded as dependent variable. To test the hypotheses, multivariate regression model is used. The results indicate that predicted income and dividend are effective factors on price bubble. The relationship between predicted income and dividend with price bubbleis positive and significant showing that increasing dividend and predicted income leads to price bubble. The results also highlights that there is not a significant relationship between industry characteristic, ownership structures with price bubble. These results indicate that firm’s behavioural factors are effective factors on price bubble.

Keywords


Predicted Income, Industry Characteristic, Ownership Structure, Dividends, Price Bubble.

References