Investigating the Relationship between Dependence on Business Group and Stock Price Simultaneity in Companies Listed in Tehran Stock Exchange

Stock price synchronization is a tool to measure stock price movement and also shows the amount of company specific information at the market and country level. At the same time, the stock price indicates that the stock price is related to the information published by the issuer, which is the financial statements, which should be audited, which can be considered as an indicator of the intensity of the market reaction. Higher synchronization indicates a lower intensity of the relationship between company information and price, and conversely, if the degree of synchronicity is low, the relationship between company information and stock price is higher and the stock market has a more positive reaction. Although business groups are legally legal in most countries, they have a single reporting personality in economic and accounting terms. The governance structure of business groups reduces representation problems by reducing information asymmetry. The present study investigates the effect of relationship between business group dependence and stock price concurrency in companies listed on the Tehran Stock Exchange between 2015 and 2017 and the final sample consists of 134. In this study, several regression analysis Variables were used to test the hypotheses. The tests were performed using Eviews8 software and panel data statistical technique (fixed effects). The results obtained in this study show that there is no significant relationship between direct and indirect dependence on the business group with the concurrence of stock prices.