Investigating investors' feelings and Iran's capital market's reaction to the corona virus epidemic (event research approach)

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Accounting, Payame Noor University, Tehran, Iran.

2 Master of Accounting , Razi KermanshahUniversity, Kermanshah , Iran.

3 Instructor, Department of Accounting, Payame Noor University, Tehran, Iran.

10.22099/jaa.2024.48558.2375

Abstract

The corona virus epidemic in the last few years and its subsequent negative economic consequences have provided a good opportunity to conduct experimental research in order to investigate the effects and consequences of this epidemic in the environmental conditions of the country and to create an insight for the possibility of repeating this experience. Therefore, the aim of the current research is to investigate the sentiments of investors and the reaction of the Iranian capital market to the epidemic of the Corona virus with the approach of event research, which is based on the data of 204 companies admitted to the Tehran Stock Exchange during the period of 8 months from 16 october 2019 to 17 june 2020 and using pairwise comparison test. The results of this research have shown that there is a significant difference in the sentiments of investors in the Iranian capital market before and after the spread of the corona virus, and the sentiments of investors in the capital market have increased after the announcement of the corona epidemic. Also, the findings have shown that with the announcement of the Corona epidemic, abnormal returns have been created for up to four days. Also, due to the uncertain future of the society and uncertainty in the economy, the capital market has experienced price fluctuations, and after two to five days, the volume of stock transactions has undergone unusual changes, in order to respond to the price fluctuations.

Keywords

Main Subjects

Files

History

  • Receive Date: 10 October 2023
  • Revise Date: 20 May 2024
  • Accept Date: 20 May 2024

Share

How to cite

Statistics