Investigating the Relationship between Specifications of Stock Corporates and their Performance: The Fall of the Tehran Stock Exchange

Abstract

This research studies the effect of market fall on stock performance, which has different characteristics
and in this regard, specifically, measures two basic points. The first point is the analysis of the
characteristics effect based on the stock and corporate in the event of a stock market fall in Iran. The
second point is the recognition of specific features of the corporate, which is most affected by the fall of
the stock market. In this study we used the Wang et al model with the definition of Patel and Sareckar (3)
of the stock market fall. This research analyzes the falls that occurred in the Iranian stock market in 2004,
2005 and 2008, and used all stocks of corporates that have been listed at least five years before the date of
the fall, with the exception of financial and governmental corporates. The data used in this study are:
daily and monthly prices, trading volume and financial statements of the end of the year before the stock
market fall. According to the results, corporates should consider factors such as reducing the level of
penetration power, increasing cash, and increasing the profitability of the corporate. From the perspective
of investors, these policies can reduce the risk of bankruptcy, as a result, if the stock market falls
occurred, the corporate stock do not suffer harmful.