The Relationship between Corporate Innovation Strategy and the Risk of Falling Stock Prices with Emphasis on Managers' Behavioral Factor

This study investigates the relationship between corporate innovation strategy and the risk of falling stock prices with emphasis on managers' behavioral factor. The purpose of this study is applied and is a causal (post-event) type of research methodology. The statistical population of the study consisted of all listed companies in Tehran Stock Exchange. Using systematic elimination sampling method, 114 companies were selected as the sample of the study. The method used for data collection was a library and logistic regression was used to test the research hypotheses. The results of the research hypotheses show that there is a significant inverse relationship between the firm's innovation strategy and the risk of falling stock prices. Also, increased investment spending has a significant negative effect on the relationship between firm innovation strategy and stock price risk, and excess investment also has a significant negative effect on the relationship between firm innovation strategy and stock price risk.