10.57647/j.amc.2025.090109

The test of the effect of speculative price bubble and f inancial leverage on the real rate of return of manufacturing companies admitted to the Tehran Stock Exchange

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  • Soheil Varmazyar1,
  • Akbar Bagheri*1,
  • Asghar Karami1,
  1. Department of Accounting, Isl.C., Islamic Azad University, Islamshahr, Iran

Received: 2005-01-30

Accepted: 2025-03-20

Published in Issue 2025-06-30

Copyright (c) 2025 Soheil Varmazyar, Akbar Bagheri, Asghar Karami (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Varmazyar, S., Bagheri, A., & Karami, A. (2025). The test of the effect of speculative price bubble and f inancial leverage on the real rate of return of manufacturing companies admitted to the Tehran Stock Exchange. Agricultural Marketing and Commercialization, 9(1). https://doi.org/10.57647/j.amc.2025.090109
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Abstract

The main objective of this research is to examine the impact of speculative price bubbles and financial leverage on the real return rate of manufacturing companies listed on the Tehran Stock Exchange during the period of 2023-2019, employing a panel data econometric approach. To this end, the theoretical foundations and literature review are presented first, followed by the specification and estimation of the research model, which is conducted using relevant diagnostic tests and the fixed effects method. The estimation results indicate a significant positive relationship between the independent variables (the actual cash dividend in the previous period, which represents a rational speculative price bubble in the research model, and the financial leverage variable) and the real return rate of the selected sample. Specifically, the first hypothesis of the study, which posits that rational speculative price bubbles significantly influence the real return rate of manufacturing companies listed on the Tehran Stock Exchange, was confirmed. Additionally, the second hypothesis, stating that financial leverage significantly impacts the real return rate of the selected sample, was also validated. Finally, recommendations based on the research findings are presented to mitigate the effects of speculative price bubbles and to enhance the impact of financial leverage on the real return rate of the selected sample.

Keywords

  • Speculative Price Bubbles,
  • Financial Leverage,
  • Real Return Rate,
  • Manufacturing Companies
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