Investigating the effect of Investor Sentiment on the stock price crash risk in Tehran Stock Exchange

Document Type : Original Article

Authors

1 Associate Prof, Department of Finance and Accounting, Shahid Beheshti University, Tehran, Iran.

2 Ph.D. Student in Accounting, Alzahra University, Tehran, Iran.

Abstract

Research on the relationship existing between Investors’ sentiments and stock pricing and price crash risk is of scholars’ concerns, especially in behavioral economics and finance. The purpose of this paper is to analyze the effect of investors’ sentiments over stock price crash risk among Tehran Stock Exchange (TSE)’s listed companies during 2010 to 2016. To review the research hypothesis, pooled/panel model regression analysis was applied. The findings indicate that there is a direct relationship between investors’ sentiments (based on Arms index) and different criteria of stock price crash risk. In other words, as Arms index, an indicator of investors’ sentiments rises, 

Keywords

References

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