The relationship between Prospectors strategy and the stock price crash risk with the role of overvalued equities
Subject Areas : Futurology
mohammad hossein ranjbar
1
,
Hossein Rajabdorri
2
1 - Assistant professor and faculty member, Department of Accounting, Bandar Abbas, Islamic Azad University, Bandar Abbas, Iran
2 - Accounting Ph.D student and Member of Young Researchers and Elite Club, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
Keywords: Commercial strategy, Stock Price Crash Risk, Over valuation,
Abstract :
The purpose of this study is to investigate the relationship between Prospectors strategy and the stock price crash risk with the role of a moderating over-valuation of stocks in companies admitted to the Tehran Stock Exchange. This research is in terms of its purpose and its time period is from 2012 to 2016 and a sample of 380 years is a company. To test the hypothesis of the research, Regression method of least squares was used in Eviews software. The results of the research hypothesis test show that after controlling the variables of the financial leverage, the size of the company, the ratio of the book value to the market value of equity and the equity ratio, between the Prospectors strategy and the stock price crash risk in two There is a positive and significant relationship between the skewness of the stock returns and the low-to-high fluctuation. Also, after controlling the listed control variables, the stock price overestimates positively and significantly the relationship between Prospectors strategies and the stock price crash risk in both of the two cases of the negative skewness of stock returns and low-to-high fluctuations. As a result, managers and investors need to pay more attention to business strategies and, with their knowledge, have more investment and management.
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