Investigating the effect of stock tendency of stock collision to fluctuation limit and price fluctuation threshold and change the basis of fluctuation limit in creating returns fluctuations

Subject Areas : Financial Accounting

Mahdieh  Farahbakhsh ¹ (Department of Accounting, Qom Branch, Islamic Azad University, Qom, Iran)
Majid   Zanjirdar ² (Department of Financial Management, Arak Branch, Islamic Azad University, Arak, Iran)
Hossein  Jahangirnia ³ (استادیار، گروه حسابداری ، واحد قم ، دانشگاه ازاد اسلامی، قم ، ایران)
Mojgan  Safa ⁴ (استادیار، گروه حسابداری ، واحد قم ، دانشگاه ازاد اسلامی، قم ، ایران)

Received: 2021-01-04 Accepted : 2021-04-19 Published : 2023-12-01

Keywords: company-related factors, market-related factors, stock tendency to deal with fluctuation limit,

Abstract :

The purpose of this study is to identify the effect of stock tendency to deal with fluctuations and price fluctuation thresholds in creating fluctuations. The statistical population of the present study is the companies listed on the Tehran Stock Exchange that were present in the stock exchange during the years 2005 to 2018. In order to confirm and reject the research hypothesis, Eviews software has been used. In Tehran Stock Exchange, following severe stock price fluctuations, the stock price fluctuation mechanism is used to limit severe stock price fluctuations, and according to certain periods, the range of stock price fluctuations changes and over time the range of fluctuations increases. The basis of trial and error has been determined and in a short period of time there have been many changes in the procedures related to the application of stock price fluctuations, without really measuring the impact of these decisions in the market and investors' reaction to changes in price fluctuations. Findings showed that the number of times each share hits the price fluctuation Yield fluctuation has a significant effect.slow efficiency fluctuations have a significant effect; And in line with the concepts of hyper-reactive theory, it can be justified, that is, after the price reaches the range of fluctuation, the trend reverses and the basis of the fluctuation limit changes; It has changed the volatility of stock returns based on jump and price continuity.

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