The role of financial components on the relationship between misevaluation of stock prices and innovation of listed companies using the mild transition regression (STR) model

Subject Areas : Financial Knowledge of Securities Analysis

yazdan  goodarzi ¹ (Assistant Professor, Department of Islamic Economics, Faculty of Economics and Management, Qom University, Qom, Iran (Corresponding Author))
Leila  Barati ² (PhD Student, Department of Financial Management, Tehran Science and Research Branch, Islamic Azad University, Tehran, Iran)

Received: 2022-09-17 Accepted : 2022-10-08 Published : 2023-05-22

Keywords: Stock issuance, company growth, Stock Turnover, stock price misevaluation, non-linear regression model,

Abstract :

Incorrect valuation refers to a situation in which the stock price of companies in the capital market differs from its intrinsic value. Incorrect valuation of companies in the capital market considered as a phenomenon that originates from the shortcomings of the capital market. The purpose of this paper is to examine the role of stock issuance; Firm growth and stock turnover on the relationship between stock price misevaluation and firm innovation. The spatial domain of this research was the companies accepted in the Tehran Stock Exchange and the temporal domain was the years between 2013 and 2019. In this paper, the wrong valuation of the independent variable stock price and the innovation of the dependent variable company considered. In the data section, the research done by collecting the data of the sample companies by referring to the financial statements, explanatory notes and the stock exchange monthly. Based on the systematic elimination method, 147 companies selected as a statistical sample. In order to analyze the data, non-linear panel data method has been used. The results showed that the wrong valuation of the stock price has an effect on the innovation of the company, in addition to the issuance of shares; Company growth and stock turnover have a moderating role on the relationship between stock price misevaluation and company innovation.

References:

خدادادی، ولی؛­نوروزی، محمد. (1395). "­قیمت‌گذاری نادرست سهام و رفتار سرمایه‌گذاری شرکت‌ها: شواهدی از نظریه‌ی ارضای سهامداران"، پیشرفت های حسابداری،  2(8)، 93 -122 .

رضایی، محمد؛ بهاروند، اردشیر. (1395). "بررسی تاثیر ارزشیابی نادرست قیمت سهام بر تصمیمات سرمایه­گذاری شرکت های پذیرفته شده در بورس اوراق­بهادار تهران"، پنجمین کنفرانس بین­المللی حسابداری و مدیریت و دومین کنفرانس کارآفرینی و نوآوری­های باز، تهران.

زرگر، صابر؛ آذر، عادل. (1399). "ارائه مدل مفهومی عوامل موثر بر نوآوری باز در مراکز تحقیق و توسعه"،اولین کنفرانس حسابداری و مدیریت.

شاهعلیزاده، بیتا و فاطمه مرادزاده. (1399). بررسی تأثیر سلامت مالی، سپر مالیاتی استهلاک، مماس پذیری بر ساختار مالی در بورس اوراق بهادار تهران، هفدهمین همایش ملی حسابداری ایران، دانشکده مدیریت و حسابداری پردیس فارابی، دانشگاه تهران.

عباسی، ابراهیم؛ شریفی، مریم.(1393). "تاثیر قیمتگذاری نادرست بر سرمایه­گذاری و ساختار سرمایه در شرکت­های با محدودیت مالی"، دوفصلنامه تحقیقات مالی، 16(2)، 308-389

کیان ارثی، زهرا.(1400)."بررسی تاثیر خطاهای ارزشیابی سهام بر حساسیت سرمایه‌گذاری ضمن تاکید برای محدودیت تامین مالی"، پایان نامه کارشناسی ارشد، دانشگاه آزاد خمین.

نادعلیزاده، فاطمه؛ دشمن زیاری، اسفندیار. (1400). "مطالعه تاثیر اشتراک گذاری دانش بر بهبود نوآوری در شرکت­ها (مورد مطالعه: کنسرسیوم بین المللی پرگس)"، هشتمین کنفرانس بین المللی ترفندهای مدرن مدیریت، حسابداری، اقتصاد و بانکداری با رویکرد رشد کسب و کارها، محل انتشار: هشتمین کنفرانس بین المللی ترفندهای مدرن مدیریت، حسابداری، اقتصاد و بانکداری با رویکرد رشد کسب و کارها.

نوروزی، محمد؛­ تقی پوریانی گیلانی، یوسف؛ فرجی، جعفر. (1397).­"نقش تعدیلی سهامداران نهادی در رابطه بین قیمت­گذاری نادرست سهام و سرمایه­گذاری شرکت­ها"، فصلنامه چشم انداز حسابداری و مدیریت، 1(­3).

Abbasi, Ibrahim; Sharifi, Maryam. (2013). "Effect of incorrect pricing on investment and capital structure in companies with financial constraints", Journal of Financial Research, 16(2), 308-389(In Persian).

Alzahrani, M. & Rao, R. P (2014). “Stock Market Mispricing and Corporate Investments: Evidence from Market-to-Book Ratio Decomposition”, the Financial Review, 49(1), 89-116.

Beason, R., Weinstein, D.E., (1996). “Growth, economies of scale, and targeting in Japan (1955-1990)”. Rev. Econ. Stat. 78 (2), 286–295.

Bekkum, S., Smit, H., Pennings, E., (2011). “Buy smart, time smart: are takeovers driven by growth opportunities or mispricing?” Financ. Manag. 40 (4), 911–940. https:// doi.org/10.1111/j.1755-053X.2011.01166.x.

Caves, D.W., Christensen, L.R., Swanson, J.A., (1981). “Productivity growth, scale economies, and capacity utilization in US railroads”, 1955-74. Am. Econ. Rev. 71 (5), 994–1002.

Dong, M., Hirshleifer, D., & Teoh, S. H. (2017). “Stock Market Overvaluation, Moon Shots, and Corporate Innovation (No. w24142)”. National Bureau of Economic Research.

Goldsmith, Saber; Azar, Adel. (2019). "Presenting a conceptual model of factors affecting open innovation in research and development centers", the first accounting and management conference. (In Persian)

Jensen, M., Meckling, W., (1976). “Theory of the firm: management behavior, agency costs and capital structure”. J. Financ. Econ. 3 (4), 305–360.

Kang, S., Chung, C.Y., & Kim, D. (2019). “The effect of institutional blockholders' short-termism on firm innovation: Evidence from the Korean market”.

Khodadadi, Vali; Norouzi, Mohammad. (2015). "Stock Mispricing and Corporate Investment Behavior: Evidence from Shareholder Satisfaction Theory", Accounting Advances, 2(8), 122-93. (In Persian)

Kian Erthi, Zahra. (1400). "Investigation of the impact of stock valuation errors on investment sensitivity while stressing the limitation of financing", Master's Thesis, Khomein Azad University. (In Persian)

Nad Alizadeh, Fatima; Doshen Ziari, Esfandiar. (1400). "Study of the effect of knowledge sharing on improving innovation in companies (case study: Pergas International Consortium)", 8th international conference on modern management, accounting, economics and banking techniques with the approach of business growth, publication place: 8th international conference between Internationalization of modern techniques of management, accounting, economics and banking with the approach of business growth. (In Persian)

Norouzi, Mohammad; Taghipuriani Gilani, Youssef; Faraji, Jafar. (2017).‌"The moderating role of institutional shareholders in the relationship between incorrect stock pricing and corporate investment", Accounting and Management Perspectives Quarterly, 1(‌3). (In Persian).

Rezaei, Mohammad; Baharond, Ardeshir. (2015). "Investigation of the impact of incorrect valuation of stock prices on the investment decisions of companies listed on the Tehran Stock Exchange", the 5th International Conference on Accounting and Management and the 2nd Conference on Entrepreneurship and Open Innovations, Tehran, https://civilica. Com/doc/501595(In Persian).

Shahalizadeh, Bita and Fatemeh Moradzadeh. (2019). Investigating the effect of financial health, depreciation tax shield, and tangibles on financial structure in Tehran Stock Exchange, 17th Iran National Accounting Conference, Faculty of Management and Accounting, Farabi Campus, University of Tehran. (In Persian)

Shahzad, F., Ahmad, M., Fareed, Z., & Wang, Z. (2022). “Innovation decisions through firm life cycle: A new evidence from emerging markets”. International Review of Economics & Finance, 78, 51-67.

Shen, Huayu, Shaofeng Zheng, Hao Xiong, Wenjie Tang, Jiachun Dou, Henry Silverman. (2021).” Stock market mispricing and firm innovation based on path analysis” Economic Modelling. https://doi.org/10.1016/j.econmod.2021.03.001.

Trinugroho, I. & Rinofah, R. (2013). “The Effect of Mispricing on Investment of Indonesian Firms: Do Financial Constraints Matter?” Middle Eastern Finance and Economics, 9 (1): 14-23.

Wenwen,An, Yuehua,Xu, Jianqi,Zhang.­(2018).­"Resource constraints, innovation capability and corporate financial fraud in entre.

Wu,­ W, Wang,­L. (2019). “Institutional Ownership Mispricing and Corporate Investmen”. Open Journal of Business and Management, 4(3), 282-290.