Studying investor’s behavior in selecting technology levels and Stock return predictability by incorrect pricing theory.
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Studying investor’s behavior in selecting technology levels and Stock return predictability by incorrect pricing theory.

Document Type : Original Article

Authors
Leila shirnejhad 1
Sina kheradyar 2
Ebrahim Chirani 3
1 Student of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran.
2 Assistant Professor, Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran. (Author)
3 Assistant Professor, Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran.
10.22034/jse.2021.11161.1392
Abstract
The goal of this study is to separate investor’s role based on risky and no risky approach on share return predictability on the basis of technology different levels. Technology different levels have been measured through number ratio average of staff having higher education, number ratio of production staff, ratio of production value added, and ratio of capital growth. In this study, concentration is on using three regression models with replacement ability in variable coefficient of technology level that from investor’s view can separate share return predictability to risky and no risky. Study sample includes 113 companies from listed companies in Tehran stock exchange that includes a ten years time period from the beginning of 2008 to the end of 2017. Results show that in share return predictability, investor’s behavior in using technology different levels is different, so that when only technology level is average, there is share return predictability for investors based on risky approach, and versus when technology level is up and down, share return predictability is done on the basis of no risky approach of investors. As a result, technology levels have important role on the basis of no risky approach basics, and when it is used as no risky factor by investors, it increases share return predictability.
Keywords
Technology level
Stock return predictability
risky investor’s view
no risky investor’s view

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Quarterly Journal of Securities Exchange
Volume 14, Issue 53
Spring 2021
Pages 138-159