The Effect of Reporting and Mass Media on Iran's Capital Market

In spite of the importance of capital market, many families surprisingly do not invest in stock. The results of some studies show that 51% of American families (Hong et al, 2004) and 72% of European families (Guiso and Jappelli, 2003) have had no stock in 1998, and stated their problem in this way: why is it that many families do not participate in stock exchange? The present study, considering significance of the financial market (especially capital market) and the country's need to that on its way to economical development, has investigated the effect of news on Iran capital market. The data needed for the study were gathered from among capital market investors through interview and questionnaire. For this purpose, statistical sample was selected through the two-stage cluster random sampling method. The results from the analysis of variance show that, there is a relationship between the oil news variable and people's participation in Iran capital market, while this relationship was not found in the level of political news variable. The results from the Kruskal-Wallis Test show that, there is a relationship between the nuclear energy news variable and people's participation in Iran capital market.

Capital Market, Participation in Capital Market, Oil News, Nuclear Energy News, Political News