Investigating the Logical Behavior of Tehran Stock Exchange Based on the Failure of the trend performance criteria

Document Type : Original Article

Authors

1 Assistant Prof, Department of Accounting, East Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Assistant Prof, Department of Financial Management, East Tehran Branch, Islamic Azad University, Tehran, Iran.

Abstract

The purpose of this study is to investigate the Logical Behavior of the Tehran stock exchange Based on the simultaneous failure of increasing and decreasing Long-term and short-term trends of performance criteria (including earnings per share, operating profit per share, operating cash flows of each share and Net growth of assets of per share adjusted by inflation (and Corporate Dividend. for this purpose, According to different financial theories, Six hypotheses are developed and data on 301 companies listed in Tehran Stock Exchange for the period between the years 1993 to 2017 are analyzed. The research method using Panel data method with fixed effects approach and using comparative tests reviewed and tested. The results showed that for the main hypothesis of the first and second, with the exception of the functional criterion, the net changes in the assets of each share, the information content of future performance and market reaction on the basis of the failure of long-term and short-term trends are increasing and decreasing for bad news is more than good news. In addition, for four main thirty to sixth hypotheses, the results show that the information content of future performance and market reaction do not follow reasonable and theoretical behavior to compare long-run and short-term patterns of failure of the performance criteria and Dividend, and Displays conflicting results. As a result, these four main hypotheses have been rejected.

Keywords

References

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