Comparing the Effects of Formal Information and Rumors on Choice of Real Stock Buyers in Tehran Stock Exchange

اقتصاد پولی مالی

Article 3, Volume 17, Issue 32, January 2011   

Document Type: پژوهشی

DOI: 10.22067/pm.v17i32.27266

Authors

Mohammad Hossein Mahdavi Adeli^* ; Reza Fahimi Dooab

Abstract

This paper investigates the effect of formal information and rumors on the real buyers’ choice in Tehran Stock Exchange. Following this study, the question is what kind of information has an effect on buyers’ choice of shares? The purpose of this study is to identify information affecting buyers selected stocks, in order to offer some solutions to enhance Stock Exchange performance. In this study, the mean test, Friedman test and Cronbach alpha coefficient were used to achieve results. The results indicate that rumors affect the buyers’ choice of shares, while formal data published by Stock Exchange or Stock Exchange member firms are not influential. As a result, the Stock Exchange needs to provide member firms with precise and reliable information in order to win their trust and following that help foster the efficiency of stock market.

Keywords

Hypothesis test; The rating method; Stock selection; Information and market efficiency; Risk Management