Results
Title

Effects of Key Contingent Financial Factors on Stock Price Volatility of Iranian Petroleum Companies.

Authors

Javadi, Seyed Mohammad

Abstract

What factors affect companies' stock prices and how such factors cause stock price fluctuations over time in the capital markets have always been a challenging question for financial analysts, investors, and activists in the capital market. Therefore, this research aims to determine the effects of critical contingent variables such as changes in equity, credit rating, and asset price growth on the stock price volatility of petroleum companies listed on the Tehran Stock Exchange (TSE). Financial data for this study were collected from a sample of 91 companies for 8 years from 2014 to 2021, and research hypotheses were tested using the multivariate regression models and ordering panel data with fixed effects tests. The results showed a significant negative relationship between credit rating and stock price volatility. However, there was no significant correlation between changes in equity and stock price volatility. Further, there was no substantial relationship between asset price growth and stock price volatility.

Subjects

PRICE increases; STOCK prices; INVESTORS; MARKET volatility; CAPITAL market; PETROLEUM industry; PRICE fluctuations; SAZMAN-i Burs-i Awraq-i Bahadar-i Tihran; CREDIT ratings; REGRESSION analysis

Publication

Petroleum Business Review (PBR), 2023, Vol 7, Issue 2, p78

ISSN

2645-4726

Publication type

Academic Journal

DOI

10.22050/pbr.2022.362128.1278