The Effect of Investors Sentiment and Accounting Information on Stock Price
This paper analyzes the mechanism behind the effects of investor sentiment and accounting information on stock price, based on the residual income valuation model. This study Uses data from firms listed in Tehran Stock Exchange over a period of 6 Years (2009-2014, In Solar Calendar) and constructs i...
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| Format: | Article |
| Language: | fas |
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Alzahra University
2017-02-01
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| Series: | پژوهشهای تجربی حسابداری |
| Subjects: | |
| Online Access: | http://jera.alzahra.ac.ir/article_2624_2dbba2f68911f09e0c3a139dbf2ee77a.pdf |
| _version_ | 1819175836517924864 |
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| author | Mohammad Reza Nikbakht Amir Hossein Hossein Pour Hossein Eslami Mofidabadi |
| author_facet | Mohammad Reza Nikbakht Amir Hossein Hossein Pour Hossein Eslami Mofidabadi |
| author_sort | Mohammad Reza Nikbakht |
| collection | DOAJ |
| description | This paper analyzes the mechanism behind the effects of investor sentiment and accounting information on stock price, based on the residual income valuation model. This study Uses data from firms listed in Tehran Stock Exchange over a period of 6 Years (2009-2014, In Solar Calendar) and constructs investors' Sentiment Index and examines investors' sentiment effect on the perspective of the expected earnings growth and the required rate of return. Furthermore, this study investigates the joint effect of investors sentiment and accounting information on stock price, through the correlation method. The empirical results show that investors sentiment can change the expected earnings growth, and thus affects the stock price. However, investor sentiment has no significant effect on the required rate of return. In addition, interaction of accounting information and investors sentiment, in high volatility of earnings, can explain the stock price. It should be noted that accounting information has more effect on stock price when earnings are more stable; whereas the sentiment puts a greater impact on stock prices when there is more information uncertainty. |
| first_indexed | 2024-12-22T21:01:12Z |
| format | Article |
| id | doaj.art-c1cf82f47900485484106adaa2213d4b |
| institution | Directory Open Access Journal |
| issn | 2251-8509 2538-1520 |
| language | fas |
| last_indexed | 2024-12-22T21:01:12Z |
| publishDate | 2017-02-01 |
| publisher | Alzahra University |
| record_format | Article |
| series | پژوهشهای تجربی حسابداری |
| spelling | doaj.art-c1cf82f47900485484106adaa2213d4b2022-12-21T18:12:50ZfasAlzahra Universityپژوهشهای تجربی حسابداری2251-85092538-15202017-02-016221925510.22051/jera.2017.11449.14042624The Effect of Investors Sentiment and Accounting Information on Stock PriceMohammad Reza Nikbakht0Amir Hossein Hossein Pour1Hossein Eslami Mofidabadi2Associate Prof. Of Accounting, University Of TehranPh.D. Student of Tehran UniversityPh.D. Student of Islamic Azad University, Science and Research branchThis paper analyzes the mechanism behind the effects of investor sentiment and accounting information on stock price, based on the residual income valuation model. This study Uses data from firms listed in Tehran Stock Exchange over a period of 6 Years (2009-2014, In Solar Calendar) and constructs investors' Sentiment Index and examines investors' sentiment effect on the perspective of the expected earnings growth and the required rate of return. Furthermore, this study investigates the joint effect of investors sentiment and accounting information on stock price, through the correlation method. The empirical results show that investors sentiment can change the expected earnings growth, and thus affects the stock price. However, investor sentiment has no significant effect on the required rate of return. In addition, interaction of accounting information and investors sentiment, in high volatility of earnings, can explain the stock price. It should be noted that accounting information has more effect on stock price when earnings are more stable; whereas the sentiment puts a greater impact on stock prices when there is more information uncertainty.http://jera.alzahra.ac.ir/article_2624_2dbba2f68911f09e0c3a139dbf2ee77a.pdf: Investor SentimentAccounting InformationEarning UncertaintyResidual Income Valuation Model |
| spellingShingle | Mohammad Reza Nikbakht Amir Hossein Hossein Pour Hossein Eslami Mofidabadi The Effect of Investors Sentiment and Accounting Information on Stock Price پژوهشهای تجربی حسابداری : Investor Sentiment Accounting Information Earning Uncertainty Residual Income Valuation Model |
| title | The Effect of Investors Sentiment and Accounting Information on Stock Price |
| title_full | The Effect of Investors Sentiment and Accounting Information on Stock Price |
| title_fullStr | The Effect of Investors Sentiment and Accounting Information on Stock Price |
| title_full_unstemmed | The Effect of Investors Sentiment and Accounting Information on Stock Price |
| title_short | The Effect of Investors Sentiment and Accounting Information on Stock Price |
| title_sort | effect of investors sentiment and accounting information on stock price |
| topic | : Investor Sentiment Accounting Information Earning Uncertainty Residual Income Valuation Model |
| url | http://jera.alzahra.ac.ir/article_2624_2dbba2f68911f09e0c3a139dbf2ee77a.pdf |
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