The Study of the Relationship between Institutional Investors and Stock Price Synchronicity in Listed Companies in Tehran Stock Exchange

Wide spread presence of institutional investors as a group of investors for corporate decisions and the behavior of stock prices through massive financial sources have important implications. This is a regulatory activity that investors do, emanate. Institutional investors use their ability to monitor and manage corporate performance that is a function of their investment. The goal of this paper is examine the relationship between institutional investors and stock price synchronicity in listed companies in Tehran Stock Exchange. Also in this research institutional investors had classified into two groups, in terms of motivation and desire to control and monitor companies: stable (long-term) and transient (temporary). They examined the relationship of stock price synchronicity. Price synchronicity is degree of market and industry information that reflected in the stock price. And its evaluation scale is systematic risk divided by non systematic risk.To examine this, 50 companies listed on the Stock Exchange during the years 1386 to 1390 as sample were chosen. And to test the hypothesis is used from pooled data (panel data). The results showed a significant negative correlation between institutional investors and stock price synchronicity. Also the findings show a significant negative correlation between the stability of institutional investors and stock price synchronicity and there is significant positive relationship between transient institutional investors and stock price synchronicity.