The Effect of Market Monitoring Costs on Price Limit Rules

Document Type : Research Paper

Authors

1 Associate prof, Faculty of Social Sciences and Economics,Alzahra University ,Tehran.Iran

2 Assistant Prof, Faculty of Social Sciences and Economics,Alzahra University ,Tehran.Iran

3 MSc.Financial Management, Faculty of Social Sciences and Economics,Alzahra University ,Tehran.Iran

Abstract

This study examined the relationship between market monitoring cost consist the business disclosure index, the index of perception of corruption, rule of law and regulations quality, and also pointed out the technology index and exercise price limit rules that are in stock.
In this research the relationship between the above indicators to price limit rules applied during the period 2005-2010 in a sample of 37 countries, including members of the World Federation of Exchange, also Tehran Stock Exchange that Complete data in the interval have been investigated. To estimate the model we used of software Stata11, Eviews7, and Excel. The results show that there is a Significant negative relationship between business disclosure index, perception of corruption and technology index with Utilization Price limit rules. Whatever The value of this index is less likelihood used of further legislation. The second part of the study also showed that to be effective each of the five indicators of market monitoring cost price limit on the range.

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References

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Financial Research Journal
Volume 17, Issue 2 - Serial Number 2
Autumn & Winter
October 2016
Pages 283-300

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