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Mostafa Shamsoddini; Hosein Nourani
Abstract
Price is known to be a very important indicator for evaluating the performance of firms in the stock market. This study aims to investigate the role of uncertainty and asymmetric information as the main variables influencing the stock price fluctuations on the intrinsic value and market price relationship ...
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Price is known to be a very important indicator for evaluating the performance of firms in the stock market. This study aims to investigate the role of uncertainty and asymmetric information as the main variables influencing the stock price fluctuations on the intrinsic value and market price relationship of firms active in the Tehran Stock Exchange during 2013-2022.The present study attempts to investigate relationship of stock price and mentioned variables in firms active in the Tehran Stock Exchange by modelling the relationship between the stock price and mentioned variables. The results indicate that asymmetric information has a positive and significant effect on the relationship between stock intrinsic price and market price in firms active in Tehran Stock Exchange. Furthermore, the variables relevant to firm performance and economic significantly impact the firm's stock prices. Earnings per share, expected return on risk and economic growth rate have a positive effect and financial leverage, inflation and exchange rate have a negative effect on the stock prices. Overall, the study underscores that uncertainty, asymmetric information, and both firm-specific and economic factors play a pivotal role in explaining fluctuations in stock prices, providing a valuable framework for understanding market behavior in the context of an emerging economy. From a practical standpoint, these findings emphasis the necessity for policymakers and market regulators to enhance transparency and information quality, thereby reducing asymmetric information and fostering investor confidence.
