Political management and share price of the companies listed on Tehran Stock Exchange: Test of Political Economy Theory

Subject Areas : Financial Knowledge of Securities Analysis

Mohamadreza  Mahdifard ¹ (دانشجوی دکتری حسابداری، گروه حسابداری، دانشکده مدیریت و اقتصاد، دانشگاه آزاد اسلامی واحد علوم و تحقیقات)
Ramezanali  Royayee ² (استادیار، گروه مدیریت امور فرهنگی، دانشکده مدیریت و اقتصاد، دانشگاه آزاد اسلامی واحد علوم و تحقیقات)

Received: 2014-03-21 Accepted : 2014-05-26 Published : 2015-04-09

Keywords: Political management, Share price, Political Economy,

Abstract :

In the context of political economy, this study investigates relationship between political management and share price in 95 listed firms of Tehran Stock Exchange (TSE) during a seven-year period from 2006 to 2012.Using correlation method and multiple regression technique, We categorize companies in two groups as a theoretical view. First, companies which have directed by political management and second companies which have not political management .The results of this study indicates   that there is a negative relation between political management and firms share price. Our result confirms political economic theory.