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:: year 15, Issue 60 (2023) ::
fa 2023, 15(60): 37-58 Back to browse issues page
The Effect of Stock Price Synchronicity on Mispricing with an Emphasis on the Role of Financial Reporting Quality
Seyed Hesam Vaghfi * 1, Jeyran Seddighi2 , Seyed Ehsan Hosseini2 , Saeed Pakdelan3
1- Department of Management,Economics & Accounting,Payame Noor University,Tehran,Iran.
2- Faculty of Administrative Sciences, Imam Reza International University, Mashhad, Iran.
3- Department of Accounting Shamdiz Non-Profit Higher Education Institute, Mashhad, Iran.
Abstract:   (197 Views)
Abstract
 Stock mispricing is a situation where the stock price in the market capital differs from its intrinsic value. Incorrect stock pricing lead to a decreased efficiency in resource allocation in the stock market. Given the importance of stock pricing in the capital market, this study aims to investigate the effect of stock price synchronization on stock mispricing, with a focus on the role of financial reporting quality.The population of the research consisted of all the companies admitted to the Tehran Stock Exchange. Using the specified limitations, 149 companies were selected as the sample for the period of 2011-2021, and the research hypotheses were tested using the multivariate regression method.The findings from the test of research hypotheses indicate that the Synchronicity of stock prices has a significant and direct relationship with stock mispricing. Conversely, the evidence suggests that the quality of financial reporting has a moderating (weakening) effect on stock prices and stock mispricing.The results of this research emphasize the concern about the decrease in the quality of financial reporting and provide insight so that the drafters of regulations and researchers can identify the root causes of the decrease in the quality of financial reporting and, if necessary, revise the current regulations governing financial reporting. This is because the quality of financial reporting can counteract the adverse effect of stock price concurrency on stock mispricing.
Article number: 3
Keywords: stock price synchronicity, stock mispricing, financial reporting quality.
Full-Text [PDF 854 kb]   (53 Downloads)    
Type of Study: Research | Subject: Special
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Vaghfi S H, Seddighi J, Hosseini S E, Pakdelan S. The Effect of Stock Price Synchronicity on Mispricing with an Emphasis on the Role of Financial Reporting Quality. fa 2023; 15 (60) : 3
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year 15, Issue 60 (2023) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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