Stock Price Synchronicity with Analyst Coverage and Disclosure of Information in Iran Capital Market

Abstract

In this study, Stock Price Synchronicity with Analyst Coverage and Disclosure of Information during the years 1390 to 1396 have been studied and compared. The statistical population of the study consists of companies listed on the Tehran Stock Exchange and Iran Fara Bourse(IFB). Research hypotheses have been tested through a multivariate regression equation. The main research hypothesis regarding the relationship between stock price synchronization and analyst coverage and disclosure of significant positive relationship has been confirmed. Other findings suggest a significant positive relationship between stock price synchronization and disclosure and  irrelevency between analyst coverage and stock price synchronization. An increase in the number of analysts on the one hand and a slight increase in the number of announcements published by the companies surveyed in the Codal system on the other hand has shown a positive relationship between these two variables and the price variable. In other words, as the synchronicity increases, the greater the number of announcements and the greater the number of analysts, the more synchronicity the stock price will be.

Keywords: Price Synchronicity, Analyst Coverage, Disclosure of Information.

DOI: 10.7176/RJFA/12-3-01

Publication date: February 28^th 2021