Mohammad Hossein Mahdavi Adeli; Reza Fahimi Dooab
Abstract
This paper investigates the effect of formal information and rumors on the real buyers’ choice in Tehran Stock Exchange. Following this study, the question is what kind of information has an effect on buyers’ choice of shares? The purpose of this study is to identify information affecting buyers ...
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This paper investigates the effect of formal information and rumors on the real buyers’ choice in Tehran Stock Exchange. Following this study, the question is what kind of information has an effect on buyers’ choice of shares? The purpose of this study is to identify information affecting buyers selected stocks, in order to offer some solutions to enhance Stock Exchange performance. In this study, the mean test, Friedman test and Cronbach alpha coefficient were used to achieve results. The results indicate that rumors affect the buyers’ choice of shares, while formal data published by Stock Exchange or Stock Exchange member firms are not influential. As a result, the Stock Exchange needs to provide member firms with precise and reliable information in order to win their trust and following that help foster the efficiency of stock market.
Mahmood Hooshmand; Reza Fahimi Dooab
Abstract
Crude oil price and the U.S. effective exchange rate are two main economic variables that have had real effects on world welfare situation. The aim of this paper is to test whether there is a stable long-run relationship between oil prices and the U.S. dollar, expressed in real term. To this end, we ...
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Crude oil price and the U.S. effective exchange rate are two main economic variables that have had real effects on world welfare situation. The aim of this paper is to test whether there is a stable long-run relationship between oil prices and the U.S. dollar, expressed in real term. To this end, we perform co-integration and causality tests between the two variables, using quarterly data from 1985:1 to 2008:4. Our results show that a 10% rise in the oil price coincides with a 1/8% depreciation of dollar in long-run, and that the causality runs from oil price to the dollar. Furthermore, we estimate the Vector Error Correction Model (VECM) to analyze the short-run behavior of real effective exchange rate and the speed of adjustment when it deviates from its long-run path. Results show that the speed of adjustment is 4/3 percent for each period that means in each period (or each season) the deviation of real effective exchange rate dollar from long-run path shrink to reach its long-run path.
