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The role of positive and negative news in the emergence of price bubbles based on financial reporting in the period before and after the takeover (Study of companies admitted to Tehran Stock Exchange)
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Mansour Moghaddasin   , Mirfeiz Fallah Shams * , Seyed Kazem Chavoshi , Reza Gholami Jamkarani |
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Abstract: (397 Views) |
The purpose of this article was to investigate the issue of price bubbles based on financial reporting in companies listed on the Tehran Stock Exchange in the period before and after the takeover. One of the strategies that is increasing in Iran's capital market during the recent periods due to the privatization program of state-owned industries and the expansion of investment companies as a result, is the takeover strategy. This strategy is among the strategies of companies to increase their competitive position in order to maximize the wealth of shareholders.
The purchase and acquisition of companies can be considered as a trading opportunity, and the buyer prevents the decrease of the market share and prevents the entry of a new competitor. In this study, the information related to the transferred companies for the period of 2011-2021 was used. The obtained results have shown that there is a positive relationship between the increase in stock price and takeover, and in the estimated logit regression model, it was observed that a one percent increase in takeover can lead to a 6.5% increase in price and price bubbles. Companies react differently to positive and negative news. Based on this, the results of the test indicate that there is a relationship between takeover and the occurrence of price bubbles, and in companies that have takeovers and changes in ownership, the probability of occurrence of price bubbles is higher. |
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| Keywords: Positive and negative news, price bubble, price manipulation, logit regression, financial reporting |
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Full-Text [PDF 1014 kb]
(95 Downloads)
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Type of Study: Research |
Subject:
Management
Received: 2024/07/10 | Accepted: 2024/09/7 | Published: 2024/08/27
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