International Journal of Academic Research in Business and Social Sciences

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Study of investors’ reaction to circulation capital/money (Study of the Tehran Stock Exchange)

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The main objective of this research is to study the effect of investors’ reaction to circulation capital in Tehran Stock Exchange. In this research, the circulation capital as independent variables and the reaction of investors (unusual return) have been considered as dependent variable and multi variable regression as well as the‘t’ student statistical test have been used to test hypothesis/supposition. The statistical society of research was the whole accepted companies in Tehran stock exchange during 2006 until 2011and the statistical sample volume is also equal to 120 companies considering the sieving method and after eliminating the outlier observation. The results obtained by the analysis of 120 companies during 2006 until 2011 at satisfactory level of 95% indicate that the reaction of the investors to circulation capital in the companies with higher financial leverage is lower than all other companies.