Analysis of the Impact of Economic Growth and Asymmetric Information of Capital Market of Iran on Investors' Confidence: A Multivariate GARCH approach

The stock exchange, as part of the capital market, in case of necessary conditions, can equip national capital and direct it towards economic growth. A secure environment for investment and information asymmetry are considered to be the features of a good business, in which managers are working towards stockholders. This research seeks to investigate whether information asymmetry of financial market and macroeconomic growth can affect investors’ confidence ratio? Our model is estimated using MGARCH for seasonal data of the stock market in Iran and the real GDP during the period from 1991-2016. The findings of the research have shown a significant effect of macroeconomic growth and information asymmetry of financial market on the growth of investors’ confidence ratio. There is also a two-way gradient relationship between the information asymmetry and the confidence of investors in the short run. There is an cointegration relationship between these three variables.