The effect of institutional investors' attention on the risk of falling stock prices of companies listed on the Tehran Stock Exchange

A sharp drop in stock prices is one of the most important risks of investing in the capital market. In the absence of a fully efficient market, it is possible to obtain abnormal negative  (positive) returns from a group of traders. One of the most important traders of the stock exchange, which plays a significant role in the operation of the stock market, is the institutional shareholders. Therefore, in this research, the effect of institutional investors' attention on the risk of falling stock prices has been investigated. For this purpose, using the systematic sampling method, the data of ۱۰۰ member companies of the Tehran Stock Exchange for the period of ۲۰۱۳ to ۲۰۲۱  have been selected and used as a sample using the method of systematic elimination. To test the hypotheses of the research, the multivariate regression technique was used using the panel data method. The research results showed that the attention of institutional investors hurts the risk of falling stock prices. The results and findings of the research confirm the supervisory role of institutional shareholders in the Tehran Stock Exchange.

Keywords:

Attention of investors , institutional shareholders , the risk of falling stock prices