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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

The Impact of Information Risk on the Systematic Risk

Mahmoud Moeinadin, Forough Heirany, Ehsan Khoshnood

http://dx.doi.org/10.6007/IJARBSS/v4-i1/515

Open access

Systematic risk is among the most significant topics and has been Longley considered by the researchers of the capital market. The final goal of the most investors, stakeholders and managers achieve the highest return. They confront risk and it is necessary to equilibrate the risk and return. Accordingly, it seems essential to investigate the risk and the related effective factors. This study seeks to find the effect of informative risk on the systematic one. Fifty two listed firms on Tehran Stock Exchange for a five year period including 2006-2010 were selected as the sample in order to test the hypotheses. Multivariate regression model has been also applied to analyze the required data. The findings reveal that there is a positive significant relationship between informative risk indicator (income smoothing) and systematic risk.

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