Parvaneh Khaleghi - Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
Mohammadali Aghaei - Department of Accounting, Tarbiat Modares University, Tehran, Iran
Farzin Rezaei - Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran

How the investors react to the received information plays a crucial role in determining the return of stock exchange market. Supply and demand based upon incorrect decisions lead to the price deviation of inherent values. This paper aims to study the impact of salience phenomenon on disproportionate pricing and investor overreaction in the corporates in Tehran stock exchange. Research methodology is correlative. Statistical sample involves ۱۲۰ corporates accepted by Tehran stock exchange during ۲۰۱۲-۲۰۱۶. To test the hypotheses, a regression analysis method has been selected. Research findings have indicated that there exists a promising phenomenon in Tehran stock exchange causing the investors overreaction followed by the disproportionate pricing and also, the results have shown that the impact of salience is different on strong and weak information environments.

Under risk selection, Salience, Disproportionate pricing, Overreaction