Factors Affecting the Idiosyncratic Volatility Anomaly

Most of the literature on the idiosyncratic volatility anomaly has focused on plausible explanations for it based on investor preferences, investor irrationality or market characteristics and The impact of unsystematic risk based pricing should be noted, when market conditions are appropriate, the company's stock price reflects a fundamental component, but the movement of the stock price does not fully reflect the reflection of the initial value. Because non-fundamental factors, such as investor behavior bias (Lakanyshvk, Shleifer, and Vishnu, 1994), lack of information asymmetry (Tobin, 1969) and systematic risk assessment of stock (Stein, 1996) lead to stock price deviation from the initial value or the actual or mispricing . This situation is affecting investment decisions. The administrator can more stock priced as a source of funding for investment (due to the low cost of capital) benefit and in contrast, the low-priced sale of shares that have been refused because the cost of capital is higher. The results of testing the hypothesis by examining data relating to 67 companies in the period from 1381-1393 that were analyzed ,We therefore suggest that the answer to this investment by companies listed on the Stock Exchange of profitability led to increased volatility unsystematic risk for them.