Investigating the Effect of Investors Emotional Trend and Information Asymmetry on Option Pricing
Subject Areas : Financial Economics
مهدی وکیلی
1
,
Alireza Heidarzadeh Hanzaei
2
*
,
Seyed Mohammad Abdollahi Keivani
3
1 - دانشآموخته کارشناسیارشد رشته مدیریت مالی
دانشکده مدیریت و علوم اجتماعی، دانشگاه آزاد اسلامی، واحد تهران شمال، تهران، ایران
2 - Department Financial Management, College of Management & Social Science, Tehran North branch, Islamic Azad University, Tehran, IRAN
3 - ,Department of Financial Management, North Tehran Branch, Islamic Azad University, Tehran, Iran
Keywords: Investors Emotional Trend, Information Asymmetry, Option Pricing.,
Abstract :
The purpose of this study is to investigate the effect of investors' emotional trend and information asymmetry on option pricing. Investors' emotional trends, the degree of optimism and pessimism of shareholders towards a stock which usually occurs due to problems in the valuation of companies, which leads to decisions based on subjective judgments. If the information needed to make a decision is distributed asymmetrically among people, it can lead to different results compared to the subject of thr decision. The research study community is all companies listed on the Tehran Stock Exchange that have the option to buy or sell, in the option market of the Tehran Stock Exchange in the period from 2017/03/21 to 2021/03/20 has been traded. The hypotheses of research using analysis multivariate regression has been tested by combined data with fixed effects. The results of the research showed investors' emotional trend has a direct and significant impact on option pricing. Investors at the option price of a company, which is due to their optimism about the situation of the company, Conversely, Lack of emotional trend relative to price the option of a company that derived from their pessimism about the future state of that company, Decrease the value of the option will include that company. Investors' information asymmetry has a direct and significant impact on option pricing. Investors' information asymmetry that is the result of some investors having specific and confidential information about companies, It leads to influencing the option pricing of companies.