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EFFECT OF PROFIT SMOOTHING ON FORMATION OF TEHRAN STOCK PRICING BUBBLE |
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| รหัสดีโอไอ | |
| Creator | Samira Salemi, Babak Jamshidinavid |
| Title | EFFECT OF PROFIT SMOOTHING ON FORMATION OF TEHRAN STOCK PRICING BUBBLE |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2562 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 10 |
| Journal No. | 6 |
| Page no. | 853-859 |
| Keyword | Pricing bubble, Margin Profit smoothing, stock price in the market, Operational profit smoothing. |
| URL Website | http://tuengr.com/Vol10_6.html |
| Website title | ITJEMAST V10(6) 2019 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | The research investigates the effect of profit smoothing on the formation of the pricing bubble, through the assessment of three hypotheses including profit smoothing and operating profit as independent variables while the pricing bubble as a dependent variable. Research population in this study is 856 corporations accepted in Tehran Stock Exchange and the sample size is 128 accepted corporations from 2012 to 2016 that have been sampled using Eckel model (coefficient of changes distribution for periodic of profit/sale). The research methodology is descriptive-measuring and relationships between variables are correlative-casualty. The research aim is application oriented. The F statistic test is used to simultaneously evaluate multiple model terms, at 5% significant level. It is found that profit smoothing, margin profit, and proceed profit do not have meaningful effects on the formation of a pricing bubble. Based on the received conclusions of the hypotheses it is suggested that managers shouldn`t use the methods of falsifications because it will cause pricing bubble creation and impair balance in the stock exchange market and shareholders and stock purchasers should consider falsification and profit smoothing by managers to invest in a stock. |
