Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Evaluating the effectiveness of stock return fluctuations based on investors' sentiments, taking into account the effects of investment opportunities

Document Type : Original Article

Authors
esmaeel mirzayi 1
Rasoul Baradaran hasanzadeh 2
1 Doctoral student of accounting department, Tabriz branch, Islamic Azad University, Tabriz, Iran.
2 Accounting Group, faculty of Management, Accounting and Economics, Islamic Azad University of Tabriz , IRAN
Abstract
Investor sentiments can significantly cause stock market fluctuations. Due to the difference in investors' access to information and their ability to process information, the asynchronous transmission of information in the stock market leads to information asymmetry. Based on this, the main goal of the current research is to evaluate the effectiveness of stock return fluctuations based on investors' feelings, taking into account the effects of investment opportunities. The current research is practical in terms of its purpose, and in terms of method, it is a causal (post-event) type of research. The statistical population of the research is the companies admitted to the Tehran Stock Exchange, and using the systematic elimination sampling method, 141 companies were selected as the research sample in the period between 1394 and 1400. Linear regression has been used to test research hypotheses. The results showed that investment sentiments have a significant effect on the volatility of stock returns. Also, the presence of the variable of investment opportunities moderates the relationship between investor sentiments and the volatility of stock returns.
Keywords
Volatility of stock returns
investor sentiments
investment opportunity
efficient market