The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange

Mehran Ansari; Hojat Jafari

doi:doi:10.11648/j.ebm.20200603.12

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The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange

Mehran Ansari, Hojat Jafari

Published in European Business & Management (Volume 6, Issue 3)

Received: 15 May 2020 Accepted: 1 June 2020 Published: 4 July 2020

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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.

Published in	European Business & Management (Volume 6, Issue 3)
DOI	10.11648/j.ebm.20200603.12
Page(s)	49-60
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Market Anomalies, The Effect of Falling, Mutations, Real Investors

References

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APA Style

Mehran Ansari, Hojat Jafari. (2020). The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange. European Business & Management, 6(3), 49-60. https://doi.org/10.11648/j.ebm.20200603.12

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Mehran Ansari; Hojat Jafari. The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange. Eur. Bus. Manag. 2020, 6(3), 49-60. doi: 10.11648/j.ebm.20200603.12

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AMA Style

Mehran Ansari, Hojat Jafari. The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange. Eur Bus Manag. 2020;6(3):49-60. doi: 10.11648/j.ebm.20200603.12

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@article{10.11648/j.ebm.20200603.12,
  author = {Mehran Ansari and Hojat Jafari},
  title = {The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange},
  journal = {European Business & Management},
  volume = {6},
  number = {3},
  pages = {49-60},
  doi = {10.11648/j.ebm.20200603.12},
  url = {https://doi.org/10.11648/j.ebm.20200603.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20200603.12},
  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.},
 year = {2020}
}

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TY - JOUR
T1 - The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange
AU - Mehran Ansari
AU - Hojat Jafari
Y1 - 2020/07/04
PY - 2020
N1 - https://doi.org/10.11648/j.ebm.20200603.12
DO - 10.11648/j.ebm.20200603.12
T2 - European Business & Management
JF - European Business & Management
JO - European Business & Management
SP - 49
EP - 60
PB - Science Publishing Group
SN - 2575-5811
UR - https://doi.org/10.11648/j.ebm.20200603.12
AB - 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.
VL - 6
IS - 3
ER -

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Author Information

Mehran Ansari

Faculty of Management and Accounting, Tehran University, Tehran, Iran
Hojat Jafari

Abadan Faculty of Petroleum Engineering, Petroleum University of Technology, Abadan, Iran

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Mehran Ansari, Hojat Jafari. (2020). The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange. European Business & Management, 6(3), 49-60. https://doi.org/10.11648/j.ebm.20200603.12

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ACS Style

Mehran Ansari; Hojat Jafari. The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange. Eur. Bus. Manag. 2020, 6(3), 49-60. doi: 10.11648/j.ebm.20200603.12

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AMA Style

Mehran Ansari, Hojat Jafari. The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange. Eur Bus Manag. 2020;6(3):49-60. doi: 10.11648/j.ebm.20200603.12

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@article{10.11648/j.ebm.20200603.12,
  author = {Mehran Ansari and Hojat Jafari},
  title = {The Effect of Real Investors on the Inefficiency of Stock Returns of Tehran Stock Exchange},
  journal = {European Business & Management},
  volume = {6},
  number = {3},
  pages = {49-60},
  doi = {10.11648/j.ebm.20200603.12},
  url = {https://doi.org/10.11648/j.ebm.20200603.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ebm.20200603.12},
  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.},
 year = {2020}
}

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