Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

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
     

   Subscribe/Renew Journal


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.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Asadi, G. (2006). Investigation of stock price bubble in Tehran Stock Exchange with an emphasis on firms type and firms size. Accounting Research, 14, 39-71.

  • BabaeiSemiromi, M. R. (2010). Literatures aboutassets price bubbleand monetary policy. International Conference On Applied Economics - ICOAE 695.

  • Campello, M., & Graham, J. R. (2013). Do stock prices influence corporate decisions? Evidence from the technology bubble. Journal of Financial Economics, 107(1), 89-110.

  • Fischbacher, U., Hens, T., & Zeisberger, S. (2013). The impact of monetary policy on stock market bubbles and trading behavior: Evidence from the lab. Journal of Economic Dynamics and Control, 37(10), 2104-2122.

  • Hematfar, M. (2013).Evaluation of the Relationship between Capital and the Creation of Price Bubbles of listed companies in the Tehran Stock Exchange. Journal of Basic and Applied Scientific Research, 3(8) 814-820.

  • Gilchrist, S., Himmelberg, C. P., & Huberman, G. (2005). Do stock price bubbles influence corporate investment? Journal of Monetary Economics, 52(4), 805-827.

  • Madalat, K. (2002). Investigation of existence of price bubble in firms listed in Tehran Stock Exchange during recent years, Central Bank of Iran researches collection, No 20.

  • Narayan, P. K. N., Mishra, S., Sharma, S., &Liu;, R. (2013). Determinants of stock price bubbles. Economic Modelling, 35, 661-667.

  • Smadi, S., VaezBorazjani, M., & Gasemi, M. R. (2010). Analysis of behavior of price bubble creation in capital market: The case of Tehran Stock Exchange. Economic Research Journal, 39.

  • SalehAbadi, A., & Dalirian, H. (2010). Investigation of price bubble in firms listed in Tehran Stock Exchange. Journal of Stock Exchange Commission, 61-75.

  • Scheinkman, J. A., & Xiong, W. (2003). Overconfidence and Speculative Bubbles. 13th Annual Utah Winter Finance Conference; AFA 2003 Washington, DC Meetings. Retrieved from http://ssrn.com/abstract=298865 or http://dx.doi.org/10.2139/ssrn.298865.

  • Shirazi, J. K., Ghasemi, M. R. A., & Setaysh, A. R. (2012). Relationship between liquidity and price bubble in Tehran's asset market. Journal of Business Research, 7, 5-12.

  • Sorayaei, A., Memarian, E., & Amiri, M. O. (2013). Examine the relationship between free float of shares and P/E ratio with a price bubble in the companies listed in Tehran stock exchange. World Applied Sciences Journal, l 21(2), 170-175.

  • Soltani, B. (2007). Auditing: An international approach. Prentice Hall-Pearson Education, pp. 660.

  • Rostami, M., Javid, D., & Hematfar, M. (2013). The effect of free float on cost of equity capital in the companies listed in Tehran stock exchange. International Journal of Basic Sciences & Applied Research, 2(6), 635-639.

  • Vakilifard, H. R., Talebnia, G., & Kiani, H. The investigation of the relationship between amount of free floating with price bubble creation in firms listed in Tehran Stock Exchange. Financial Engineering and Portfolio Management, 1(4), 67-87.


Abstract Views: 364

PDF Views: 2




  • Effective Factors of Price Bubble in Tehran Stock Exchange

Abstract Views: 364  |  PDF Views: 2

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