Information ambiguity and its effect on stock price synchronicity during the life cycle stages of companies
Subject Areas : Investments
Gholamreza Askarzadeh
1
,
Omid Kargarshooroki
2
1 - Department of Finance, Yazd Branch, Islamic Azad University, Yazd, Iran
2 - Department of Finance, Yazd Branch, Islamic Azad University, Yazd, Iran
Keywords: information ambiguity, stock price synchronicity, company life cycle,
Abstract :
Objective: Information asymmetry between managers and shareholders has always been one of the concerns of investors and people active in the capital market. The purpose of this research is to investigate the effect of information ambiguity on the simultaneity of stock prices during the life cycle stages of companies. Research Methodology: The research design is quasi-experimental and using the post-event approach (through past information). Multiple regression model is used in this research and the basis of data analysis is the past information of the company's financial statements during years 2013 to 2023. It is The present research is a study with a practical approach and its results will be useful for managers, investors and other experts in the field of capital market analysis. Findings: The results of the research hypotheses test showed that information ambiguity has an inverse and significant effect on stock price synchronicity. Also, the results of the research showed that the impact is different in the stages of the company's life cycle. So that it has the greatest impact in the growth stage and the other stages (maturity and decline) are less. These results indicate that in the maturity period, the information ambiguity of the company is very low and the stock price synchronicity is more. Originality/scientific added value: The findings of this research will be very useful for managers, investors, analysts and legislative institutions and can lead to reducing the costs of stock exchange, increasing market efficiency, increasing liquidity and finally increasing profits in transactions.
