راهبرد مدیریت مالی (Sep 2024)

Interpretive structural modeling of factors influencing Stock price informativeness

  • Mohammad Hossein Ramezani zare,
  • Meysam Arabzadeh,
  • Ali Namaki,
  • Mohamamad Alipour

DOI
https://doi.org/10.22051/jfm.2023.44178.2839
Journal volume & issue
Vol. 12, no. 3
pp. 1 – 24

Abstract

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AbstractObjective: It is important for investors and traders to be aware of the stock price in listed companies, so it is important to identify the factors affecting Stock price informativeness. The purpose of the current research is to interpret the structural modeling of factors influencing Stock price informativeness in companies listed on the Iranian Stock Exchange.Methods: The identification of factors affecting informativeness through research background and semi-structured interviews with qualitative content analysis method based on theoretical saturation technique was done with 17 professors and financial managers. The validity of the qualitative part of the research was confirmed by the method of relative content validity and reliability using Cohen's kappa index. Coding of the interviews using MAXQDA software led to the identification of 41 effective factors, after referring to experts and drawing a pie chart, 34 factors were determined as the most important factors affecting Stock price informativeness. In order to stratify and model the structural interpretation of the identified factors, the opinions of 41 financial managers of listed companies were used with the available non-probability sampling method and with the help of a paired comparison questionnaire. The validity of the questionnaire was confirmed using the content validity and its reliability using the test-post-test method.Results: Interpretive structural modeling of the factors affecting Stock price informativeness led to the formation of thirteen levels, where economic factors and financial macroeconomic policies were the most effective, and transparency of financial information, auditors' management letter, and the type of auditor's comments were the most effective factors.Conclusion: Identifying factors affecting awareness and information disclosure by companies in the financial sector is essential, it helps investors and other stakeholders to make more informed decisions.

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