The impact of price bubble and loss aversion of shareholders on non-fundamental value of companies listed on TSE

Daraee Masome¹ Shamsi fahimeh² Mahtab Eshghi Araghi³ Bahari Fateme⁴

1) Financial expert of Mazandaran and Golestan Regional Electric Company
2) Young Researchers Club, Islamic Azad University of Arak elites
3) Researcher of the Year and member of the Young Researchers and Elite Premier Azad University of Arak
4) Director of the Department of Forestry Village Accounting

Publication : 9th International Conference on Sustainable Development Techniques in Management and Industrial Engineering with a Perpetual Challenge(bmbeconf.com)
Abstract :
The present study aimed to evaluate the effect of price bubble and loss aversion behavior of shareholders on non-fundamental value of companies listed on TSE. The present study is applied in terms of purpose. The present study is correlation in terms of method and nature. The study is in inductive-deductive framework. The statistical estimation of models and multiple effects of all variables are performed by Eviews5 and SPSS software. The model estimation is the combination of cross-section-time series (panel data). Multiple regression is applied for the multiple impact of all variables on non-fundamental value to show the effect of independent variables on dependent variables simultaneously. By an econometric model by cross-section-time series data (panel), the effect of price bubble, loss aversion behavior and market elements of stock market on non-fundamental value as market price, fundamental value in 30 companies listed on TSE in a 3-year old period 2012-2014 is investigated. The effect of three variables of price bubble, loss aversion and behavior of stock market on non-fundamental value is tested. The results show that the effect of three explanatory variables on non-fundamental value in companies listed on TSE was positive and significant and among explanatory variables, price bubble had great impact.
Keywords : Price bubble Non-fundamental value Market price Loss aversion behavior Stock market Share