Managerial ability, investment efficiency and risk of stock collapse

Subject Areas : Financial engineering

Negin Hosseini ¹ , mohammadreza kashefi Nishaburi ²

1 - department of Risk Management Financial Engineering , Tehran Branch, Damavand University of Guidance, Tehran , Iran
2 - Department of Financial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2020-12-21 Accepted : 2021-02-02 Published : 2021-03-21

Keywords: managerial ability, Investment Efficiency, stock fall,

Abstract :

Given thechanges that have taken place in the world today,in developing countriesthat face many threats,these countries need appropriate solutions tosolve their economicproblems tomake better useof theirGod-givenfacilities and wealth.Oneof the important strategies is investment development.Due to limited resources,inaddition tothe issue ofinvestment development,increasing investment efficiency and awareness of the riskofstock falls are among the most important issues.The purposeof thisstudywas to investigate the effectofmanagerial abilityon the investment efficiencyof companieslisted on theTehran StockExchange andto investigate the effectof investment efficiency onthe risk of fallingstock pricesof companieslisted ontheTehranStockExchange usingthe methodThe data panel isfor the period 2011-2018.The results showedthat managerialability has a positive effecton investment efficiency so that if themanagerial abilityof a unit increases,investment efficiency/0005.The unit increases;The risk of falling stockpriceof the first benchmark of theprevious year and investmentefficiency have a negative effect on therisk ofstock falling, so that if the risk of falling stock priceofthe first benchmarkof the previousyear and the investment efficiencyof a unit increases,the riskof fallingstock is0.08 And decreasesby1.54 points;The riskof fallingstock priceof the second benchmark of theprevious year and investment efficiency have a significant negative effect onthe risk of stockfalling, sothat if the riskof fallingstock price of thesecond benchmarkof the previous year and the investmentefficiency of one unit increases,the risk ofstock falling is/07Anddecreasesby1.81points