Rise and decline of stock prices and returns in Tehran Stock Exchange (Evidence from small companies and groups) Mohammadipour Rahmatollaha, Ahmadsimab Hanib, Faridfar Mohammad Rezac aDepartment of accounting, Science and Research branch, Islamic Azad University, Ilam, Iran bM.A. Student of accounting, Department of accounting, Science and Research branch, Islamic Azad University, Ilam, Iran cM.A. Student of accounting, Department of Accounting, Neishaboor Branch, Islamic Azad University, Neishaboor, Iran Online published on 6 April, 2015. Abstract Economic development need to attract and management financial assets and wealth in society. Investment management and financial resources required to provide appropriate sharing of information and for optimal decision in the investment process. The present study aims to analyze the data collected by an actual attempt to extract the criteria that enable the investors to compare Large and small companies and determine if prices increase and decrease according to the size of the company, can be considered as a measure to increase the efficiency of the shares, or not? Using data collected from a sample consisting of 112 companies in the period 2008–2012, the research hypotheses were tested. To test hypotheses panel data was used. Then the software Spss21, Eviews 7 and Minitab 16 was used. Then normality of the distribution of the dependent variables were tested. The results show that there was a significant relationship between the average stock returns of small companies and groups firm and price volatility in times of rising stock prices at 95% Level of confidence. So The first hypothesis is accepted. The positive coefficient of this variable suggests a direct relationship between the average stock returns of small companies and groups and price volatility in times of rising stock prices. The results of the second hypothesis suggests that there was a significant relationship between the average stock returns of small companies and groups firm and price volatility in times of declining stock prices at 95% Level of confidence. So The second hypothesis is accepted. The Negative coefficient of this variable suggests a Reverse relationship between the average stock returns of small companies and groups and price volatility in times of declining stock prices. Top Keywords Returns of stock portfolio, par price volatility and stock returns, firm size, the ratio of investment. Top |