Stock Price Synchronicity with Analyst Coverage and Disclosure of Information in Iran Capital Market

Sirvan Amini

doi:10.7176/rjfa/12-3-01

Abstract

In this study, Stock Price Synchronicity with Analyst Coverage and Disclosure of Information during the years 1390 to 1396 have been studied and compared. The statistical population of the study consists of companies listed on the Tehran Stock Exchange and Iran Fara Bourse(IFB). Research hypotheses have been tested through a multivariate regression equation. The main research hypothesis regarding the relationship between stock price synchronization and analyst coverage and disclosure of significant positive relationship has been confirmed. Other findings suggest a significant positive relationship between stock price synchronization and disclosure and irrelevency between analyst coverage and stock price synchronization. An increase in the number of analysts on the one hand and a slight increase in the number of announcements published by the companies surveyed in the Codal system on the other hand has shown a positive relationship between these two variables and the price variable. In other words, as the synchronicity increases, the greater the number of announcements and the greater the number of analysts, the more synchronicity the stock price will be. Key w ords : Price Synchronicity, Analyst Coverage, Disclosure of Information. DOI: 10.7176/RJFA/12-3-01 Publication date: February 28 th 2021

Highlights

The significance of the vibrancy, healthiness, and transparency of the banking sector to the growth and development of economies cannot be overemphasized in that it ensures adequate mobilization and intermediation of fund through which economies thrive
Literature affirmed that the absence of confidence in the operational activities of the banking sector is toxic to the performance level mostly measures in terms of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM) and Profit after Tax (PAT) (Adigwe, Nwanna & John, 2016; Pitambar, 2017)
The data used for this study were secondary data collected from the audited financial statements of 10 Deposit Money Banks listed on the Nigerian Stock Exchange (NSE) for ten years, spanning from 2008 and 2017

Summary

Introduction

The significance of the vibrancy, healthiness, and transparency of the banking sector to the growth and development of economies cannot be overemphasized in that it ensures adequate mobilization and intermediation of fund through which economies thrive. It must be noted that the level of functioning of the banking sector depends on the patronage of the customers towards its services coupled with the assurance of quality services (Agbaeze & Ogosi, 2018). This informs that the loss of confidence by the populace in the activities of the firms in the banking sector, Deposit Money Banks, could engender panic among the minor (employees) and major (shareholders) stakeholders, move the volatility of the economy to the extreme and, in the same vein, breed economic and financial woes (Adegbemi, Donald & Ismail, 2013). Literature affirmed that the absence of confidence in the operational activities of the banking sector is toxic to the performance level mostly measures in terms of Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM) and Profit after Tax (PAT) (Adigwe, Nwanna & John, 2016; Pitambar, 2017)

Methods

Discussion

Conclusion