The Relationship between Stock Mispricing and Corporate Investments with Emphasis on the Role of Financial Constraints and Time Horizon of Stockholders Investment

Subject Areas : Financial Knowledge of Securities Analysis

Younes Badavar Nahandi ¹ ( Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran )
Elahe Sarafraz ² ( Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran )

Received: 2016-07-29 Accepted : 2016-12-21 Published : 2018-03-21

Keywords: Stock Mispricing, Corporate Investments, Financial Constraints, Time Horizon of Stockholders I,

Abstract :

This research investigates the relationship between Stock Mispricing and Corporate Investments with Emphasis on the Role of Financial Constraints and Time Horizon of Stockholders Investment of listed companies in Tehran Stock Exchange (TSE). The goal of this present research is application and the type of research methodology is causal. Statistic population is firms listed in Tehran Stock Exchange, and using systematic elimination sampling method, were selected as sample 128 firms, and time period has been during the years 2009 to 2014. The method used for information gathering is library research and this test hypotheses, we used of multivariate linear regression. The results of this research show that there is positive and significant relationship between Stock Mispricing and Corporate Investments. Financial Constraints and Time Horizon of Stockholders Investment has not effect on Stock Mispricing and Corporate Investments. There is not relationship between Overvalued Stock and Corporate Investments and there is not relationship between Undervalued Stock and Corporate Investments in this research

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