Investigating the effect of stock price informativeness on labor investment efficiency

Authors
Rezvan Hejazi 1
Hamid Kalhornia 2
Iman Dadashi 3
Amir Firooznia 4
1 Professor in Accounting, khatam University, Tehran. Iran. (Corresponding author )
2 PhD Student in Accounting, University of Tehran, Tehran, Iran. (hamid.kalhornia@gmail.com)
3 Assistant Professor in Accounting, Azad Islamic University, Babul branch, Babul, Iran. ( i.dadashi@gmail.com)
4 PhD Student in Accounting, Azad Islamic University, Babul branch, Babul, Iran.(amir6760@yahoo.com)
10.29252/aapc.3.5.209
Abstract
The Managerial learning hypothesis suggests that managers can learn the stock price informativeness of their stock company stock, which can help improve their decision-making efficiency. According to Managerial learning hypothesis, the stock price informativeness can affect the Labor investment efficiency, since stock prices contain valuable information that managers have about the company's future product demands, growth opportunities, and financial policies that determine the level of enterprise investment. The main purpose of this research is to investigate the effect of stock price informativeness on Labor investment efficiency in listed companies in Tehran Stock Exchange. To test the research hypotheses, were used data from 135 companies listed in Tehran Stock Exchange during the period of 2011-2016. This research is a quasi-experimental research in the field of probative accounting research and is applied to the purpose of the purpose. The method of this study is inductive and post-recurrent (using past information) and its hypothesis test method is multiple linear regression model or using combination data. The results of the data analysis indicate that there is a significant positive association between stock price informativeness and Labor investment efficiency. In other words, the stock price informativeness has increased the Labor investment efficiency. This result is consistent with the direction of research by Ben-Nasr and Alshwer (2016), because the research has examined the effect of stock price information on Labor investment efficiency, which is similar to the results of this research.
Keywords
Stock price informativeness
Labor investment efficiency
Managerial learning hypothesis
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Value and Behavioral Accounting
Volume 3, Issue 5
Summer 2018
Pages 209-232