The effect of stock market situation on investment among Iranian firms

Abstract

This study investigates the effect of stock market on the firm's investment in Iran from the price informativeness perspective. The objective of this study is to explain the effect of the stock market performance, including corporate governance and informative roles on the firm's investment in Iran using the price informativeness criterion and to explain the effect of basic principles of the firm on investment. This study was conducted using multivariate regression Change model. The price informativeness was estimated using price synchronization combined with the transparency of information. The population included the firms listed in Tehran Stock Exchange during 2004 to 2011. Systematic elimination method was used to determine the samples, and finally, 77 firms were studied. The data were analyzed by using analyzed different statistical tests, including t , f and wong tests. The results indicated that the stock market performance has no effect on firm's investment from the price informativeness perspective.