Investigating the Effect of Accounting Concepts on Stock Price Synchronization

The purpose of this study is to investigate the effect of accounting concepts on the concurrency of stock prices in companies listed on the Tehran Stock Exchange. The concepts of accounting in this study include corporate social responsibility, tax avoidance, accounting conservatism, Political cost and corporate dividend policy. For this purpose, five hypotheses for compiling and data related to 131 member companies of the stock exchange for the period between 2010 to 2019 have been analyzed. The research regression model has been investigated and tested using a panel data approach with a random effects approach. The results show that the corporate social responsibility by increasing the level of supervision and accountability has reduced information asymmetry and information complexity, which ultimately has led to a reduction in stock price synchrony. Also, the results indicate that corporate tax avoidance and accounting conservatism have increased the level of stock price synchronicity due to their effect on reducing transparency and increasing information complexity. However, other results confirm that the company's political cost and dividend policy do not have a significant effect on the concurrence of stock prices. The results indicate that accounting concepts with respect to the effect that can have on the information environment of the company, the degree of corporate transparency and the level of supervision required as a factor affecting the level of stock price synchronization in companies listed on the Tehran Stock Exchange.