Macroeconomic Factors and Stock Price Crash Risk: Do Managers Withhold Bad News in the Crisis-Ridden Iran Market?

The present study aims to investigate the effects of macroeconomic variables on stock price crash risk in economically uncertain conditions Iran’s market. This also seeks examine whether there is a significant relationship between some firm characteristics and falling prices. sample includes 152 Iranian companies listed Tehran Stock Exchange (TSE) 2014 2019. Furthermore, research model has been estimated using fixed effect pattern, DUVOL (down-to-up volatility) measure defined as proxy for risk. Consistent with our expectations, results show that positive association inflation unemployment rates risk, whereas GDP exchange are correlated negatively In fact, rising unemployment, one hand, amount savings purchasing power people have decreased, other it reduced sales due increase pricing manufactured products. situation sanctions, managers trying overstate financial performance conceal bad news better access financing; so, when total accumulated over time reaches tipping point, leads crash. It appears rate rises, investors prefer buy companies’ shares maintain their money. Outcomes confirm larger firms those higher Return Assets (ROA) more sensitive