The Effect of Managers Myopia on Investors Behavior in the Capital Market
Author(s):
Article Type:
Research/Original Article (دارای رتبه معتبر)
Abstract:
This research aims to measure the stock market reaction to the managers myopia. Manager myopia tends to increase the current stock prices and inflate the current profitability by decreasing long term profitability or increasing cash flows.
The statistical population of this research is all companies listed on Tehran Stock Exchange during the years 1385 to 1394 (Hijri calendar). After applying some filters and restrictions, 117 companies were selected and investigated.
The results indicate that myopia does not have a significant negative impact on abnormal returns, obtained at the time of profit report.
Overall results indicate that the capital market in the form of efficiency (stocks and time of profit report) dont have significant reaction to managers myopia. In the same time, managers myopia has a positive significant effect on return on future assets, as a measure of future financial performance.
In summary, the results indicate that the capital market doesnt react to managers myopia but managers myopia affects future financial performance of investigated companies.
The statistical population of this research is all companies listed on Tehran Stock Exchange during the years 1385 to 1394 (Hijri calendar). After applying some filters and restrictions, 117 companies were selected and investigated.
The results indicate that myopia does not have a significant negative impact on abnormal returns, obtained at the time of profit report.
Overall results indicate that the capital market in the form of efficiency (stocks and time of profit report) dont have significant reaction to managers myopia. In the same time, managers myopia has a positive significant effect on return on future assets, as a measure of future financial performance.
In summary, the results indicate that the capital market doesnt react to managers myopia but managers myopia affects future financial performance of investigated companies.
Keywords:
Language:
Persian
Published:
Financial Engineering and Protfolio Management, Volume:8 Issue: 33, 2018
Pages:
247 to 264
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