Financial Management Perspective

Financial Management Perspective

The role of financial Reporting Quality on the Tendency of Transient Institutional Investors in Adopting Value and Momentum Trading Strategies

Document Type : Original Article

Authors
Maryam Ebrahimi 1
Leila Safdarian 2
Masoud Fouladi 3
Maryam Farhadi 2
1 Ph.D. Candidate in Accounting,, Mobarakeh Branch, Islamic Azad University, Isfahan, Iran.
2 Assistant Prof, Department of Accounting, Mobarakeh Branch, Islamic Azad University, Isfahan, Iran.
3 Assistant Prof, Department of Accounting, Shahin Shahr Branch, Islamic Azad University, Isfahan, Iran.
10.52547/jfmp.11.36.9
Abstract
In recent years, the concept of trading strategies value and Momentum strategies has become important.The present study investigates the role of financial reporting quality on the willingness of short-term institutional investors and the timing of achieving the return of each of the two strategies. Investigating data related to the companies listed on the Tehran Stock Exchange from 2013 to 2020 indicate that The results indicate that the tendency of transient institutional investors to invest in companies with poor financial reporting decreases during the both value and momentum strategies. Institutional investors also achieve abnormal returns in the momentum strategy faster than value strategy.
Keywords
Financial Reporting Quality
Value Strategy
Momentum Strategy
Short-Term Institutional Shareholders
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Financial Management Perspective
Volume 11, Issue 36
Autumn 2021
Pages 9-33