Modelling the Block Trades Premium: Focusing on Refining and Petrochemical Companies

• Published in: Mathematics and Modeling in Finance Vol. 1; no. 2; pp. 195 - 222
• Main Authors: Mehran Kaviani, Ali Mohammad Ghanbari, Moslem Peymany
• Format: Journal Article
• Language: English
• Published: Allameh Tabataba'i University Press 01.12.2021
• Subjects: financial ratios; iran farabourse; regression models; tehran stock exchange
• DOI: 10.22054/jmmf.2021.13849
• ISSN: 2783-0578

Business expansions being engaged in variety of industries in purpose of getting bigger market share, role of corporate governance within the financial decision. One of the important issues in corporate governance is block trading with purpose of control or invest in target firms. If the plan is to acquire majority of shares and decision making, block trade along with paying premium are of great importance. The purpose of this study is to determine factors affecting on premium of block trading of firms listed in Tehran Stock Exchange or Iran Fara Bourse. Due to the significant impact of companies in refining and petrochemical sectors on whole economy and capital market, this kind of firms should have been considered specially. Multivariate regression and ordinary least squares (OLS) method was used to study the model related to the influential factors on the paid premium of the block trading. Finding of the research shows that financial structure, features of block trading, profitability and efficiency are among factors affecting on premium and also the type of company does not effect on premium.