The relationship between different levels of management ownership, free floatation, stock return volatility and age of the company with stock prices synchronization

Subject Areas : Financial engineering

Zabihallah Khani masuom abadi ¹ , Hossein Rajabdorri ² , sara motamed ³

1 - Assistant Professor, Department of Accounting, Fasa Branch, Islamic Azad University, Fasa, Iran
2 - Accounting Ph.D. Student and Member of Young Researchers and Elite Club, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
3 - Msc Student in Accounting, Lamerd Branch, Islamic Azad University, Lamerd, Iran

Received: 2018-02-11 Accepted : 2018-04-29 Published : 2018-12-22

Keywords: Stock Return Volatility, Management Ownership, Free Floatation, Firm Age, Stock Price Synchronization,

Abstract :

The purpose of this study was to investigate the relationship between different levels of management ownership (high, medium and low), free floatation, volatility of stock returns and age of the company with the synchronization of stock prices in companies admitted to the Tehran Stock Exchange. Also, variables of size and financial leverage are also considered as the control variable. This research is applied in terms of its purpose and its period is from 2012 to 2016, and the sample is composed of 89 companies. To test the hypothesis of the research, multivariate regression was used in Eviews software. The results of the research hypothesis test show that the relationship between managerial ownership and price synchronization as high management (negative and significant), middle management ownership (negative and significant), free-floating shares (negative and significant), age (Positive and significant), volatility of stock returns (positive and significant) and financial leverage (positive and significant). As a result, it is necessary to pay more attention to this issue.