Volume 25, Issue 1 (Spring 2020)
JPBUD 2020, 25(1): 109-134 |
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Noraniazad S, Rasekh Jahromi E. (2020). The Relationship Between Fuzzy Coefficient of Innovation, Market Power, and Stock Return - Evidence of Competition-Aversion. JPBUD. 25(1), 109-134. doi:10.29252/jpbud.25.1.109
URL: http://jpbud.ir/article-1-1919-en.html
URL: http://jpbud.ir/article-1-1919-en.html
1- Assistant Professor of Economics, Payame Noor University, Tehran, Iran. , noraniazad@pnu.ac.ir
2- Faculty Member of Economics, Payame Noor University, Tehran, Iran.
2- Faculty Member of Economics, Payame Noor University, Tehran, Iran.
Abstract: (5593 Views)
The main purpose of this article is to test the relationship between market power, innovation, and stock return in Tehran security market. To meet this end, the data of 153 institutions in Tehran security market over the period of 1997-2018 were used through a panel smooth transition approach. The results indicate the existence of a nonlinear relationship among variables in innovation and stock returns equations. Also, in the innovation coefficient equation, with an increase in market power as a transition variable to the threshold level, the innovation coefficient was increasing and significant, and passing through this level it was decreasing and significant. In addition, in the stock return equation, this trend maintains increasing innovation before and after the threshold level. In general, the results of innovation intensity and stock returns equations show that in the firms active in Tehran Stock Exchange, there was an asymmetrical and U-inverse relationship between the market power, innovation, and stock return. Moreover, evidence of competition-aversion effects was confirmed in most stock exchange firms.
Keywords: Threshold Level, Innovation Coefficient, Market Power, Stock Returns, Security Market, Panel Smooth Transition Regression Model (PSTR).
Type of Study: Research |
Subject:
industrial economics
Received: Aug 10 2020 | Accepted: Feb 29 2020 | ePublished: Nov 18 2020
Received: Aug 10 2020 | Accepted: Feb 29 2020 | ePublished: Nov 18 2020
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