Investigating the Effect of Environmental Uncertainty on the Relationship between Herd Behavior and Negative Price Shock in TSE

The purpose of this study was to investigate the effect of peripheral uncertainty on the relationship between the herd behavior of investors and the price of negative stock shock. Because the capital market is one of the main pillars of the country's economic growth and development, the incidence of any disturbance and deviation in prices causes problems with allocating and equipping funds. Reducing stock prices is an example of the disorders created in the capital market. On the other hand, one of the factors that lead to the fluctuations of return and instability of financial markets is the herd behavior of 67 Investigating the Effect of Environmental Uncertainty on the... investors. If investors lack sufficient information about environmental factors, environmental uncertainty occurs. Such a situation also affects the organization. Environmental uncertainty overshadowed the use of financial statements. Changes in stock prices and corporate status are cases that can not speak in full confidence in their occurrence. As a result, environmental uncertainty is part of the economic environment. To test the research hypotheses, 156 companies from the Tehran Stock Exchange during the years 2010 to 2020 were selected by screening method. To test the hypotheses, multivariate regression models were performed using STATA14 software. The results indicate that herd behavior has a significant effect on price shock and environmental uncertainty has no effect on the relationship between the two.