Investigating the Relationship between herding Behavior Bias and Value of Companies in the Chemical Products Industry of Tehran Stock Exchange
Subject Areas : Financial Markets and Institutions
saeed pakdelan
1
,
Mohammed Hussain vadeei
2
,
Alireza Azarbrahman
3
,
Samira Salim
4
1 - Assistant Professor of Accounting Department and Faculty Member of Shandiz Higher Education Institute – Mashhad
2 - Assistant Professor of Accounting, Ferdowsi University of Mashhad
3 - PhD Student in Accounting, Mazandaran University and Faculty Member of Shandiz Non-Profit Higher Education Institute - Mashhad
4 - Senior Accounting Expert, Shandiz Institute of Higher Education
Keywords: Company value, Mass Bias, Manager Mass Behavior, Investor Mass Behavior,
Abstract :
Financial markets play a vital role in macroeconomics and sustainability. Therefore, considering this role in macroeconomics, it seems necessary to study the behavior of managers and investors regarding the tendency to imitate the actions of others and the formation of mass behavior and the impact of this behavior on the value of companies. The main purpose of this study is to investigate the bias of corporate mass behavior with the value of the company at the company, industry and the entire research community, which can help to develop behavioral financial issues. For this purpose, the behavioral bias of managers and investors was examined from the perspective of mass production at the company and industry levels and its effect on the value of the company was analyzed. To test the hypotheses, a sample of 44 companies active in the chemical products industry for the years 1391 to 1397 was selected and correlation and multivariate regression tests were used. The experimental results of this study indicate the existence of bias in the mass behavior of managers and investors at the industry level. The results showed that stock prices have a significant mass behavior at the company level. It was also confirmed that investor behavior bias can affect the value of the company. Finally, it was confirmed that the behavior of managers has a significant effect on the value of the company.
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