Volume 6, Issue 3, May 2020, Page: 49-60
The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange
Mehran Ansari, Faculty of Management and Accounting, Tehran University, Tehran, Iran
Hojat Jafari, Abadan Faculty of Petroleum Engineering, Petroleum University of Technology, Abadan, Iran
Received: May 15, 2020;       Accepted: Jun. 1, 2020;       Published: Jul. 4, 2020
DOI: 10.11648/j.ebm.20200603.12      View  203      Downloads  42
Abstract
Fluctuations in stock returns and the factors that affect them are controversial in financial research. Institutional investors, as a group of investors, play an important role in the economic development of the capital market through their access to huge financial resources. But real investors may not be able to achieve the return and profitability due to the scarcity of their financial resources. Accordingly, the study of the role of real investors in the volatility of stock returns is very important. The present study aims to find evidence for the relationship between real investors in open volatility of ten stocks. Few studies of financial market irregularities and the behavior of capital market investors have focused on the results. By challenging the efficient market hypothesis, it is clear that real investors raise the stock price of companies that have been successful over time. The real price and the price of unsuccessful stocks are lower than the real price, but over time the market realizes its mistake and the prices return to equilibrium. Acceptance of stock returns is irregular (Tehran Stock Exchange). In order to achieve the research goal, ten-year information (2009-2019) of 140 companies by judicial sampling method was studied. This research is applied in terms of purpose and testing the hypotheses of logit and cross-sectional regression. Fama and French three-factor model and Carhart's four-factor model were used. The results indicate that the relationship between stock price jump and real investors has been explained and finally practical suggestions have been provided.
Keywords
Market Anomalies, The Effect of Falling, Mutations, Real Investors
To cite this article
Mehran Ansari, Hojat Jafari, The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange, European Business & Management. Vol. 6, No. 3, 2020, pp. 49-60. doi: 10.11648/j.ebm.20200603.12
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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