Salience Theory and Pricing Stock of Corporates in Tehran Stock Exchange

Khaleghi, Parvaneh; Aghaei, Mohammadali; Rezaei, Farzin

doi:10.22034/amfa.2019.577140.1120

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	Salience Theory and Pricing Stock of Corporates in Tehran Stock Exchange
Article 1, Volume 3, Issue 4, Autumn 2018, Page 1-16 PDF (1.16 MB)
Document Type: Research Paper
DOI: 10.22034/amfa.2019.577140.1120
Authors
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
Abstract
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.
Keywords
Under risk selection; Salience; Disproportionate pricing; Overreaction
Main Subjects
Financial Accounting


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