Authors : Hossein Tavakoli and Mohsen Rahimi Dastjerdi
Abstract: Stock exchange as one of the main pillars of the capital in the country capable of mobilizing stagnant savings towards, economic growth and development, therefore authorities and capital markets are also interested to follow capital market and stock exchange dynamics and contribute to the economic growth path. In developing countries such as Iran, relationship between exchange rate volatility and stock price index is considered as a critical issue and not unexpected that the country due to lack of developed financial markets are more vulnerable to financial crises. In this study, given the importance of the market economy, the relationship between exchange rate volatility and stock price index using Granger causality tests in companies listed in Tehran Stock Exchange in the period from 2010 to October 2014. Results of this study showed a-sided and significant effect of the exchange rate changes on stock prices of companies listed in Tehran Stock Exchange index.
Hossein Tavakoli and Mohsen Rahimi Dastjerdi, 2016. Investigate the Relationship Between Exchange Rate and Stock Price Index of Companies Listed on the Tehran Stock Exchange. International Business Management, 10: 4966-4973.