Investigating the Relationship between Political Uncertainty and Market Irregularities: With Emphasis on the Risky Information Environment

Subject Areas : Financial Accounting

Hossin  Sharifirad ¹ (PhD Student, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran)
negar  Khosravipoor ² (Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran)
sina  kheradyar ³ (Assistant Professor, Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran)
Mohammadreza  Vatanparast ⁴ (Assistant Professor, Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran)

Received: 2021-04-10 Accepted : 2021-07-05 Published : 2023-01-01

Keywords: Accrual Anomaly, Normal Stock Anomaly Cost, Firm Size, Political Uncertainty,

Abstract :

investors and managers are always faced with uncertainty in the information environment, which uncertainty can be due to factors such as the synchronization of stock returns, extraordinary fluctuations in stock returns and the number of equations. The purpose of this study is to investigate the political uncertainty caused by the size of the firm under the influence of risky information environment, the irregular behavior of accruals anomaly and the anomaly behavior of the cost of normal stock equity of companies. For this purpose, the data of 99 companies listed on the Tehran Stock Exchange and Iran TSETMC during the years 2009 to 2019 were examined and tested through combined data. The results showed that the political uncertainty caused by the firm size affected the concurrency stock returns with the optional accrual anomaly behavior and the cost of normal stock equity behavior of companies has a positive and signification relationship. The results also showed that the political uncertainty caused by the firm size is affected by the extraordinary fluctuation of stock returns with the optional accrual anomaly behavior and the cost of normal stock equity behavior of companies has a positive and signification relationship. In addition, the political uncertainty caused by the firm size is affected by the number of equations with the optional accrual anomaly behavior and the cost of normal stock equity behavior of companies has a positive and signification relationship.

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