The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital Market
Financial markets are affected by several factors, one of them is investors. Due to the recent trend of entry and influence of individual investors on the capital market, addressing the effects of the trading behavior of individual investors in various dimensions, including trading volume, has becom...
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| Format: | Article |
| Language: | fas |
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Alzahra University
2022-09-01
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| Series: | راهبرد مدیریت مالی |
| Subjects: | |
| Online Access: | https://jfm.alzahra.ac.ir/article_6615_82ff70c89d9601679e2804943d4b0981.pdf |
| _version_ | 1797903297763344384 |
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| author | Mohammad Mahdi Bahrololoum Moslem Peymany Foroushany MohammadMahdi Rezaveisi |
| author_facet | Mohammad Mahdi Bahrololoum Moslem Peymany Foroushany MohammadMahdi Rezaveisi |
| author_sort | Mohammad Mahdi Bahrololoum |
| collection | DOAJ |
| description | Financial markets are affected by several factors, one of them is investors. Due to the recent trend of entry and influence of individual investors on the capital market, addressing the effects of the trading behavior of individual investors in various dimensions, including trading volume, has become more important than before. In this regard, the present study examines the effect of real investors' transactions on the value of companies admitted to the Iranian capital market in the period 2014 to 2019. Using two-stage least squares regression and Granger causality test, it was found that the transactions of individual investors have a positive and significant effect on the Firm value, thus that the transactions of real investors increase the value of the Firm. Another result is that the effect of real investors' transactions on the value of the Firm is stronger in good companies than in bad companies; this means that the transactions of real investors increase the value of the Firm by improving the price information content |
| first_indexed | 2024-04-10T09:30:39Z |
| format | Article |
| id | doaj.art-22e92820761648b0b48f6308e16a96c4 |
| institution | Directory Open Access Journal |
| issn | 2345-3214 2538-1962 |
| language | fas |
| last_indexed | 2024-04-10T09:30:39Z |
| publishDate | 2022-09-01 |
| publisher | Alzahra University |
| record_format | Article |
| series | راهبرد مدیریت مالی |
| spelling | doaj.art-22e92820761648b0b48f6308e16a96c42023-02-19T04:44:44ZfasAlzahra Universityراهبرد مدیریت مالی2345-32142538-19622022-09-01103274210.22051/jfm.2022.35363.25186615The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital MarketMohammad Mahdi Bahrololoum0Moslem Peymany Foroushany1MohammadMahdi Rezaveisi2Assistant Professor, Finance and Banking Department, Management and Accounting Faculty, Allameh Tabatabei University, TehranDepartment of Accounting and Management, Allameh Tabataba'i University, Tehran, IranAllameh Tabataba'i, Tehran, IranFinancial markets are affected by several factors, one of them is investors. Due to the recent trend of entry and influence of individual investors on the capital market, addressing the effects of the trading behavior of individual investors in various dimensions, including trading volume, has become more important than before. In this regard, the present study examines the effect of real investors' transactions on the value of companies admitted to the Iranian capital market in the period 2014 to 2019. Using two-stage least squares regression and Granger causality test, it was found that the transactions of individual investors have a positive and significant effect on the Firm value, thus that the transactions of real investors increase the value of the Firm. Another result is that the effect of real investors' transactions on the value of the Firm is stronger in good companies than in bad companies; this means that the transactions of real investors increase the value of the Firm by improving the price information contenthttps://jfm.alzahra.ac.ir/article_6615_82ff70c89d9601679e2804943d4b0981.pdfindividual investorfrim valuespreadtrading volume |
| spellingShingle | Mohammad Mahdi Bahrololoum Moslem Peymany Foroushany MohammadMahdi Rezaveisi The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital Market راهبرد مدیریت مالی individual investor frim value spread trading volume |
| title | The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital Market |
| title_full | The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital Market |
| title_fullStr | The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital Market |
| title_full_unstemmed | The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital Market |
| title_short | The Impact of Individual Investor's Trading on Firm Value of Listed Companies in Capital Market |
| title_sort | impact of individual investor s trading on firm value of listed companies in capital market |
| topic | individual investor frim value spread trading volume |
| url | https://jfm.alzahra.ac.ir/article_6615_82ff70c89d9601679e2804943d4b0981.pdf |
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