عنوان مقاله [English]
The purpose of this research is to examine the effect of stock market misvaluation on firmâs investment decisions. stock market misvaluation is a condition in which the value of stock in the capital market different from its fundamental value. Statistical community of this research includes all Tehran Stock Exchange accepted companies and Statistical sample includes of 100 Tehran Stock Exchange manufacturing firms from 1381-1390. panel data for these firms are analyzed using GLS regression model with fixed effects.
The results in the research show that the nonfundamental element of stock value has positive impact and significant to firms investment. Moreover, This result indicates that the value of the stock market in Tehran Stock Exchange provide information for managers relating to the firmâs investment decisions. High stock price can be considered by managers as a sign that investors have positive perception to the firm's investment decision.