Evaluate the stock market performance of companies based on uncertainty in the internal information environment and behavioral biases

Subject Areas : Journal of Investment Knowledge

reza aghaha ¹ , sina kherdyar ² , Farzin Rezaei ³ , fadhel mohamadi node ⁴

1 - Ph.D. Student in Accounting, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran.
2 - Assistant Professor of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran.
3 - Associate Professor of Accounting. Faculty member Of Qazvin Islamic Azad University
4 - Assistant Professor, Department of Management, Faculty of Humanities, Islamic Azad University, Lahijan Unit, Lahijan, Iran

Received: 2021-02-12 Accepted : 2021-07-24 Published : 2021-12-22

Keywords: Equity Cost, Behavioral Biases, internal information environment, company value,

Abstract :

Uncertainty due to environmental changes, limited resources and higher profits have made planning a necessary necessity. For this reason, recognizing and analyzing the internal environment is very important for directing the resources of organizations. Understanding the internal environment of the organization in practice means determining the strategic strengths and weaknesses of the organization, which is possible through the identification and evaluation of internal strategic factors. The purpose of this study is to evaluate the stock market performance of companies based on uncertainty in the internal information environment and behavioral bias. To test the hypotheses, the information of 84 companies listed on the Tehran Stock Exchange in the period between 1397-1391 has been used. The results showed that there was a positive and significant relationship between managers 'distrust and corporate value, but there was a negative and significant relationship between managers' distrust and corporate equity costs. Had. The results showed that there is a positive and significant relationship between managers' pessimism and information prominence and the cost of equity of companies, respectively. Uncertainty in the internal information environment weakens the relationship between managers 'distrust and corporate value, but internal information uncertainty strengthens the relationship between managers' pessimism about stock market performance and information prominence with corporate value. But uncertainty in the internal information environment undermines the relationship between information prominence and the cost of corporate equity.

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