Investigating the effect of managers' emotional and spiritual intelligence on the concurrence of stock prices and stock returns

Subject Areas : Financial Economics

Mehdi  Haj Ebrahimi ¹ (Department of Accounting, Zahedan Branch, Islamic Azad University, Zahedan, Iran)
Hossein  Shafii ² (Department of Accounting, Sirjan Branch, Islamic Azad University, Sirjan, Iran)
Abbas  Sheybani Tezerji ³ (Department of Accounting, Sirjan Branch, Islamic Azad University, Sirjan, Iran)

Received: 2022-01-31 Accepted : 2022-03-15 Published : 2023-05-01

Keywords: Stock Returns, emotional intelligence, spiritual, Stock Price Synchronization,

Abstract :

Spiritual and emotional intelligence in the field of organizational behavior is very important for the performance of companies, concurrent with stock prices, and the expected return of investors. Managers with these two skills have a remarkable ability to create commitment in employees, strengthen the spirit of self-control in employees and eliminate weaknesses in the control of the company. Is their spirituality and affects the effectiveness of the company. Therefore, based on this argument, the present study examines the effect of managers' spiritual and emotional intelligence on the concurrence of stock prices and stock returns. For this purpose, King (2008) questionnaire and emotional intelligence based on Bar-On (2001) questionnaire were used to measure the spiritual intelligence of managers. The hypotheses were tested using the statistical method of regression analysis with composite data using the information of 60 companies listed on the Tehran Stock Exchange in 2019. The findings of the research hypothesis indicate that the emotional and spiritual intelligence of managers affects the concurrence of companies' stock prices. The results also include the effect of managers 'emotional and spiritual intelligence on companies' stock returns.

References:

[1] Abedi Jafari, H., Moradi, M., The study of emotional intelligence and its relation with entrepreneur leadership, Management Science, 2005, 7, P. 38-52. Doi: 10.22034xcd.1258

[2] Abbasian-Naghneh, S., Tehrani, R., Tamimi, M., The Effect of JCPOA on the Network Behavior Analysis of Tehran Stock Exchange Indexes, Advances in Mathematical Finance and Applications, 2021, 6(3), P. 465-477.

Doi: 10.22034/amfa.2019.1873319.1258

[3] Azadi, M., Izadikhah, M., Ramezani, F., Hussain, F.K., A mixed ideal and anti-ideal DEA model: an application to evaluate cloud service providers, IMA Journal of Management Mathematics, 2020, 31(2), P. 233-256,

Doi: 10.1093/imaman/dpz012

[4] Ahmadi, M.R., Ahmadi Angali, K., Deris, A., Evaluation of disclosure of financial information on the cost of capital based on CAPM model, Quarterly Financial Accounting Journal, 2012, 4(13), P. 66-85. URL: http://qfaj.ir/article-1-699-fa.html

[5] Bavandi Sani, S.M., Malekzadeh, G., and Pouya, A., Investigating the effect of spiritual intelligence on job performance of bank employees with the mediating role of innovation (Case study: Mehr Eghtesad Bank, Khorasan Razavi Province), Bi-Quarterly Journal of Social Sciences, 2018, 15(2), P.173-212. Doi: 10.22067/JSS.V15I2.66575

[6] Balouei, E., Anvary Rostamy, A., Sadeghi Sharif, S., Saeedi, A. The Impacts of Financial Structure on Financial Performance of Banks listed in Tehran Stock Exchange: An Empirical Application. Advances in Mathematical Finance and Applications, 2018, 3(3). P.11-26. Doi: 10.22034/amfa.2018.544946

[7] Baseri, S., Hakaki, A., Analysis of Financial Leverage, Operating Leverage and Capital Venture Effect on Tobin's Q Ratio of Investment and Holding Companies Listed in Tehran Stock Exchange, Advances in Mathematical Finance and Applications, 2018, 3(1), P.91-96. Doi: 10.22034/amfa.2018.539137

[8] Bar-On, R., Emotional Intelligence and Self-Actualization Emotional Intelligence in Everyday Life: A Scientific Inquiry, 1st Edition, Philadelphia: Psychology Press., 2001

[9] Chin, W. W., Marcolin, B. L., Newsted, P. R., A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study, Information systems research, 2003, 14(2), P. 189-217, Doi: 10.1287/isre.14.2.189.16018

[10] Cook, G. L., Bay, D., Visser, B., Myburgh, J.E., and Njoroge, J., Emotional intelligence: The role of accounting education and work experience, Issues in Accounting Education, 2011, 26(2), P. 267-286. Doi: 10.2308/iace-10001

[11] Damoori, D., Saeeda, S., Fallahzadeh, A., The Investigating Overreaction of Investors to Patterns of Past Financial Performance Measures in the Tehran Stock Exchange. Accounting and Auditing Review, 2009, 16(1).

Dor: 20.1001.1.26458020.1388.16.1.4.9

[12] Dhaoui, A., Empirical Linkages between Trading Volume and Stock Markets Shocks:  When Sentiments Drive Investors Behavior. Journal of Economic and Social Studies, 2015, 5(2), P.105-126. Doi: 10.14706/JECOSS15527

[13] Dong, D., Wu, K., Investor attention is a risk pricing factor? Evidence from Chinese investors for self-selected stocks. China Finance Review International, 2019, 10(1), P. 95-112. Doi: 10.1108/CFRI-11-2017-0218

[14] Dostar, M., The model presentation of influence manager’s emotional intelligence on staff’s organizational commitment with attention to leadership styles role, PhD thesis of management, Modares university., 2006

[15] Druskat, V. U., Mount, G., Sala, F., Linking Emotional Intelligence and Performance at Work: Current Research Evidence with Individuals and Groups, 3rd Edition, United States, Philadelphia: Psychology Press, 2013.

[16] Farooq, O., Aktaruzzaman, K., Does stock price synchronicity effect information content of reported earnings? Evidence from the MENA, Financial Markets & Institutions, 2016, 6(3), P. 41-47, Doi: 10.22495/rcgv6i3c1art5

[17] Fernandes, N., Ferreira, M. A., Insider trading laws and stock price informativeness, Review of Financial Studies, 2009, 22(5), P. 1845-1887, Doi: 10.1016/j.ememar.2020.100690

[18] Fallahzadeh Abarghouhei, A., Taftiyan, A., Heirany, F. Relationship between Information Disclosure with the Stock Price Synchronicity and Crash Risk of Falling Stock Prices within Simultaneous Equations System, Journal of Accounting Knowledge, 2019, 10(1), P. 169-194. Doi: 10.22103/jak.2019.11485.2580

[19] Goleman, D., A Conversation with Daniel Goleman, Educational Leadership, 1996, 56(1), P. 6-11

[20] Goleman, D., Emotional intelligence, translated by Parsa, N., Tehran: Roshd, 2001.

[21] Golparvar, M., Khaksar, F., The Relationship between Emotional Intelligence and Job Performances in a Set of Industrial Factories in Isfahan. Clinical Psychology and Personality, 2010, 8(1), P. 19-34.

[22] Ghobari Bonab, B., Salimi, M., Soliani, L., and Nouri Moghadam, S., Spiritual intelligence. Andishe-Novin-E-Dini. 2007, 3 (10), P. 125-147 Dor: 20.1001.1.20089481.1386.3.10.5.6

[23] He, W., Li, D., Shen, J., Zhang, B., Large foreign ownership and stock price informativeness around the world, Journal of International Moneyand Finance, 2013, 36, P. 211-230. Doi: 10.1016/j.jimonfin.2013.04.002

[24] Hoffmann, A. O., Post, T., Pennings, J. M., How investor perceptions drive actual trading and risk-taking behavior, Journal of Behavioral Finance, 2015, 16(1), P. 94-103. Doi: 10.1080/15427560.2015.1000332

[25] Izadikhah, M. Improving the Banks Shareholder Long Term Values by Using Data Envelopment Analysis Model. Advances in Mathematical Finance and Applications, 2018, 3(2), P.27-41. Doi: 10.22034/amfa.2018.540829

[26] Jin, Y., Yan, M., Xi, Y., Stock price synchronicity and stock price crash risk: Basedon the mediating effect of herding behavior of QFII. China Finance Review International, 2016, 31(2), P.1011-1041, Doi: 10.1108/CFRI-05-2015-0047

[27] King, D.B., Rethinking Claims of Spiritual Intelligence: A Definition, Model, and Measure, M. A. Thesis in Psychological, Trent University, Peterborough, Ontario, Canada. 2008.

[28] Lajevardi S J, Kokabi S., Studying the Role of Emotional Intelligence in the Quality of Decision Making of Managers Case: Institute of International Energy Studies, Strategic studies in the oil and energy industry, 2016, 8(29), P. 79-97, URL: http://iieshrm.ir/article-1-64-fa.html

[29] Martinez, M. N., The Smart that Count, HR Magazine, 1997, 42(11), P. 72-78.

[30] Mayer, J. D., Caruso, D. R., Salovey, P., Emotional Intelligence Meets Traditional Standards for an Intelligence, Intelligence, 1999, 27(4), P. 267-298. Doi: 10.1016/S0160-2896(99)00016-1

[31] Mushinada, V.N.C and Veluri, V.S.S., Elucidating investor's rationality and behavioural biases in Indian stock market, Review of Behavioral Finance, 2019, 11(2), P. 201-219. Doi: 10.1108/RBF-04-2018-0034

[32] Miryekemami, S., Sadeh, E., Sabegh, Z. Using Genetic Algorithm in Solving Stochastic Programming for Multi-Objective Portfolio Selection in Tehran Stock Exchange. Advances in Mathematical Finance and Applications, 2017, 2(4), P. 107-120. Doi: 10.22034/amfa.2017.536271

[33] Nasr, N., Farhadi Sartangi, M., Madahi, Z. A Fuzzy Random Walk Technique to Forecasting Volatility of Iran Stock Exchange Index. Advances in Mathematical Finance and Applications, 2019, 4(1), P.15-30.

Doi: 10.22034/amfa.2019.583911.1172

[34] Osoolian, M., Sadeghi Sharif, S., Khalili, M. Accruals, Cash Flow, and Operating Profitability in the Cross Section of Stock Returns; Evidence from Tehran Stock Exchange (TSE). Accounting and Auditing Review, 2018, 24(4), P. 463-482. Doi: 10.22059/acctgrev.2018.240522.1007683

[35] Poordavoodi, A., Moazami Goudarzi, M.R.,  Haj Seyyed Javadi, H., Rahmani, A.M., Izadikhah, M., Toward a More Accurate Web Service Selection Using Modified Interval DEA Models with Undesirable Outputs, Computer Modeling in Engineering & Sciences, 2020, 123(2), P. 525-570, Doi: 10.32604/cmes.2020.08854

[36] Rahimi, I., Nezampour, I., Investigating the Relationship between Accounting Disclosure, Stock Price Synchronization and Risk of Stock Fall in Companies Listed on the Tehran Stock Exchange, New Research in Humanities, 2016, 3(14), P. 141-117.

[37] Roll, R., The stochastic dependence of security price changes and transaction volumes: implications for the mixture-of-distributions hypothesis. The Journal of Finance, 1988, 43(3), P. 541-566, Doi: 10.2307/1912726

 [38] Roostaee, R., Izadikhah, M., Hosseinzadeh Lotfi, F., An interactive procedure to solve multi-objective decision-making problem: an improvment to STEM method, Journal of Applied Mathematics, 2012, 324712, P.1-18,

Doi: 10.1155/2012/324712

[39] Salehi, M., Yazdani, M., Mirzaee, M. The Effect of Spiritual and Emotional Intelligence of Managers on Corporate Financial Performance. Journal of Health Accounting, 2017, 6(1), P. 68-87.

 Doi: 10.30476/jha.2017.39333

 [40] Sayyadi Tooranloo, H., Azizi, P., Sayyahpoor, A., Analyzing causal relationships of effective factors on the decision making of individual investors to purchase shares, International Journal of Ethics and Systems, 2019, 36(1), P. 12-41. Doi: 10.1108/IJOES-03-2019-0053

[41] Song, L., Accounting disclosure, stock price synchronicity and stock crash risk: An emerging-market perspective. International Journal of Accounting & Information Management, 2015, 23(4), P. 349-363. Doi: 10.1108/IJAIM-02-2015-0007

[42] Tavana, M., Izadikhah, M., Farzipoor Saen, R., Zare, R., An integrated data envelopment analysis and life cycle assessment method for performance measurement in green construction management. Environ Sci Pollut Res, 2021,  28, P. 664–682. Doi: 10.1007/s11356-020-10353-7

[43] Tischler, L., Biberman, J., McKeage, R., Linking Emotional Intelligence, Spirituality and Workplace Performance: Definitions, Models and Ideas for Research, Journal of Managerial Psychology, 2002, 17(3), P. 203-218. Doi: 10.1108/02683940210423114

[44] Vaughan, F., What is Spiritual Intelligence? Journal of Humanistic Psychology, 2002, 42(2), P.16–33. Doi: 10.1177/0022167802422003.

[45] Yang, K-P., Maou, X-Y., A study of nurses spiritual intelligence: A cross-sectional questionnaire survey, International Journal of nursing studies, 2007, 44 (6), P. 999-1010. Doi: 10.1016/j.ijnurstu.2006.03.004

[46] Zare, R., Izadikhah, M., Multi-criteria decision making methods for comparing three models of aluminum ingot production through life cycle assessment, Applied Ecology and Environmental Research, 2017, 15(3), P. 1697-1715, Doi: 10.15666/aeer/1503_16971715

[47] Zanjirdar, M., Overview of Portfolio Optimization Models, Advances in Mathematical Finance and Applications, 2020, 5(4), P. 419-435. Doi: 10.22034/amfa.2020.674941

[48] Zarei Matin, H., Kheirandish, M., and Jahani, H., Conceptualization of Spiritual Intelligence in Organization (Case Study in Labbafi Nejad Hospital of Tehran). Public Management Researches, 2011, 4(12), P. 71-94. Doi: 10.22111/jmr.2011.640

[49] Zeidner, M., Matthews, G., Roberts, R.D., What We Know About Emotional Intelligence, 1st Edition, London: A Bradford Book, MIT Press, 2009.