M.A. Thesis:

Business strategy, overvalued equities, and stock price crash risk

There is always a final level to accumulate bad news in the company, and by reaching that final level, these bad news will be released, and shareholders will change their beliefs about the value of the company and, as a result, the price of the stock, which will lead to a fall in prices Shares of the company. In this research, the relationship between business strategy, excessive equity valuation and the risk of falling stock prices in listed companies in Tehran Stock Exchange was reviewed. This research is in terms of its purpose. Also, this research is in terms of the descriptive nature of correlation. For this purpose, a total of 600 years (120 companies) were surveyed during the period from 2011 to 2015. Financial data was analyzed using Eviews and Stata software. According to the statistical methods performed at the confidence level, 95% of the hypotheses were tested. The results of the research hypothesis test showed that there is a positive and significant relationship between the excessive valuation of equity and the risk of falling stock prices of companies. Also, there is a negative and significant relationship between business strategy and the risk of falling stock prices in companies.

Keywords: corporate strategy, excessive valuation, stock prices and risk of falling stock prices