An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE)
In this study we investigate the possibility of earning abnormal returns through the use of contrarian trading strategy in Tehran Stock Exchange (TSE). Contrarian trading strategy states that stocks which had better performances in the past, should be sold and stocks that had poor performances, shou...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | fas |
| Published: |
University of Tehran
2008-05-01
|
| Series: | بررسی‌های حسابداری و حسابرسی |
| Subjects: | |
| Online Access: | https://acctgrev.ut.ac.ir/article_19317_7e8e3bbc1721a0d48a14f1d1f81b9c52.pdf |
| _version_ | 1811284527851503616 |
|---|---|
| author | ساسان مهرانی علی‌اکبر نونهال نهر |
| author_facet | ساسان مهرانی علی‌اکبر نونهال نهر |
| author_sort | ساسان مهرانی |
| collection | DOAJ |
| description | In this study we investigate the possibility of earning abnormal returns through the use of contrarian trading strategy in Tehran Stock Exchange (TSE). Contrarian trading strategy states that stocks which had better performances in the past, should be sold and stocks that had poor performances, should be bought. This strategy is based on the belief that capital market shows overreaction to the recent information and determines the price of Winner stocks more than their real value and the price of less Losers than their real value. Consequently in the subsequent periods, market will recognize its mispricing and return reversal will be observed in these stocks. Five major industries of Tehran Stock Exchange (TSE) which were studied between the years of 1379 to 1384, formed statistical sample of this study. Statistical Method of T-test were used to analyze the gathered data. Results revealed that it is possible to increase return of investments on securities in the TSE through the use of contrarian investment strategy. |
| first_indexed | 2024-04-13T02:30:57Z |
| format | Article |
| id | doaj.art-3124ab0cbc8a41548041205893aefae6 |
| institution | Directory Open Access Journal |
| issn | 2645-8020 2645-8039 |
| language | fas |
| last_indexed | 2024-04-13T02:30:57Z |
| publishDate | 2008-05-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | بررسی‌های حسابداری و حسابرسی |
| spelling | doaj.art-3124ab0cbc8a41548041205893aefae62022-12-22T03:06:35ZfasUniversity of Tehranبررسی‌های حسابداری و حسابرسی2645-80202645-80392008-05-0115119317An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE)ساسان مهرانیعلی‌اکبر نونهال نهرIn this study we investigate the possibility of earning abnormal returns through the use of contrarian trading strategy in Tehran Stock Exchange (TSE). Contrarian trading strategy states that stocks which had better performances in the past, should be sold and stocks that had poor performances, should be bought. This strategy is based on the belief that capital market shows overreaction to the recent information and determines the price of Winner stocks more than their real value and the price of less Losers than their real value. Consequently in the subsequent periods, market will recognize its mispricing and return reversal will be observed in these stocks. Five major industries of Tehran Stock Exchange (TSE) which were studied between the years of 1379 to 1384, formed statistical sample of this study. Statistical Method of T-test were used to analyze the gathered data. Results revealed that it is possible to increase return of investments on securities in the TSE through the use of contrarian investment strategy.https://acctgrev.ut.ac.ir/article_19317_7e8e3bbc1721a0d48a14f1d1f81b9c52.pdfContrarian trading strategyEfficient Market Hypothesis (EMH)OverreactionReturn reversalWinner and loser stocks. |
| spellingShingle | ساسان مهرانی علی‌اکبر نونهال نهر An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE) بررسی‌های حسابداری و حسابرسی Contrarian trading strategy Efficient Market Hypothesis (EMH) Overreaction Return reversal Winner and loser stocks. |
| title | An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE) |
| title_full | An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE) |
| title_fullStr | An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE) |
| title_full_unstemmed | An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE) |
| title_short | An Investigation of Implementing Contrarian Trading Strategy in Tehran Stock Exchange (TSE) |
| title_sort | investigation of implementing contrarian trading strategy in tehran stock exchange tse |
| topic | Contrarian trading strategy Efficient Market Hypothesis (EMH) Overreaction Return reversal Winner and loser stocks. |
| url | https://acctgrev.ut.ac.ir/article_19317_7e8e3bbc1721a0d48a14f1d1f81b9c52.pdf |
| work_keys_str_mv | AT sạsạnmhrạny aninvestigationofimplementingcontrariantradingstrategyintehranstockexchangetse AT ʿlyạḵbrnwnhạlnhr aninvestigationofimplementingcontrariantradingstrategyintehranstockexchangetse AT sạsạnmhrạny investigationofimplementingcontrariantradingstrategyintehranstockexchangetse AT ʿlyạḵbrnwnhạlnhr investigationofimplementingcontrariantradingstrategyintehranstockexchangetse |