The effect of Trading Halt Time on Returns, Trading Volume and the Process of Discovering Stock Price in the Tehran Stock Exchange
Journal Title: International Research Journal of Applied and Basic Sciences - Year 2013, Vol 7, Issue 12
Abstract
Halt of trading of a publicly traded company is practiced prior to release of significant information about companies to provide investors an opportunity to analyze the news. When a publicly traded company faces considerable changes that can potentially influence its stock value, market authorities provide investors with such mechanisms to take appropriately action to the changes and avoid a turmoil market. Since nearly all conducted research dealt with the effects of trading halt rather than its duration, this research is aimed to investigate possible correlation between the duration of the trading symbol’s halt with its returns, trading volume, and the process of discovering stock’s price. To do so, halts were divided into four groups based on their duration then the effects of time period on research variables were studied. Data was gathered from companies traded in Tehran Stock Exchange during 2007-2011. Our hypotheses were examined using variance analysis (ANOVA), Duncan Test and Regression. The results reveal a significant correlation between halt duration and the variables under study. We found that the longer the halt time is, the higher percentage of change can occur on the symbol’s opening day. Also trading volume increases while stock’s returns decreased, for shorter halt duration.
Authors and Affiliations
Mehdi Ahmadi| Accounting Department, Islamic Azad University, Borujerd Branch, Borujerd, Iran, email: amehdi364@gmail.com, Mohammad Janani| Accounting Department, Islamic Azad University, Borujerd Branch, Borujerd, Iran, Ali Aqha-Mohammadi| Accounting Department, Islamic Azad University, Borujerd Branch, Borujerd, Iran
Keywords
Related Articles
- EP ID EP6498
- DOI -
- Views 293
- Downloads 11
Method Of Complex Chemical Reactions
In the first part of the study, several mathematical methods for solving differential equations systems describing a process which are most commonly used in engineering theory and practice, were analyzed, for a character...
Geology,Petrography and geochemical of the Selijerd Intrusive Rocks, Northeast Saveh, Central Iran
The Selijerd intrusive mass is located in the Northeast of Saveh and is considered as a part of the Urumieh-Dokhtar magmatic arc (UDMC). The mass is replaced in the Eocene-Oligocene volcanosedimentary rocks consist mainl...
Morphological Simulation of Bank Erosion in a Natural River
River bank erosion is a problem with global significance. Bank erosion induced by alluvial river channel migration can cause a large number of economic and environmental problems including, land loss, hazard to aquatic h...
Investigating Justice in Human Force of Nurses in Kermanshah Province using Gini Coefficient Index 2006-2011
Introduction and Purpose: justice in the distribution of nurses in Kermanshah province using the Gini coefficient index was evaluated in 2006-2011. Methodology: This applied research, the length of the cross-sectional re...
The role of emotional intelligence on English learning as a second language
This study investigated the role of emotional intelligence and it's components to predict English learning as a second language among L2 students of Islamic Azad University. The statistical population involved all of the...