The effect of product market advertising on the risk of falling stock prices in companies listed on the Tehran Stock Exchange

Mostafa Khosroabadi; Azadeh Ashrafi; Faranak Khodayari

doi:10.61838/kman.ijimob.3.3.4

Authors

Mostafa Khosroabadi MSc Student, Department of Management and Economics, North Tehran Branch, Islamic Azad University, Tehran, Iran

Azadeh Ashrafi * Assistant Professor, Department of Management and Economics, North Tehran Branch, Islamic Azad University, Tehran, Iran srdtdt@yahoo.com

Faranak Khodayari Assistant Professor, Department of Management and Economics, North Tehran Branch, Islamic Azad University, Tehran, Iran

https://doi.org/10.61838/kman.ijimob.3.3.4

Keywords:

Product market, advertising, crash risk, stock price.

Abstract

Objective: This study aimed to investigate the effect of product market advertising on the risk of falling stock prices in companies listed on the Tehran Stock Exchange.

Method: This research was of a descriptive type, and in terms of the purpose of the applied research, and in terms method of the descriptive-post-event research method. The statistical population consisted of managers and experts of companies admitted to the Tehran Stock Exchange, 73 companies were selected as the research sample during the 5 years of 2018-2022 by systematic elimination method. In order to collect the required information, the research was based on the library data collection method. The research data has been collected from the published reports of the documents and documents by the companies admitted to the stock exchange by Rahavard Novin software. In order to analyze the data, descriptive and inferential statistics methods were used with EXCEL, SPSS, and EVIEWS software.

Results: The results showed that product market advertising affects the risk of falling stock prices in companies listed on the Tehran Stock Exchange. Also, the results showed that advertising costs, advertising intensity and advertising compression affect the risk of falling stock prices in companies listed on the Tehran Stock Exchange.

Conclusion: The results indicate that the research model is well-fitted and has a good meaning. Investors and stock market players should consider product market advertising as a factor influencing the risk of falling stock prices in order to make correct decisions.