To Investigate Relation between Business Strategies and Overvalued Equity on Stock ‎Price Crash Risk with regard to intermediate role of companies’ ownership

Companies generally use aggressive and defensive strategies. The directors of aggressive companies tend to keep bad news confidential, therefore, Information Asymmetry in these companies is higher than defensive companies. So, the goal of this research is to investigate Relation between Business Strategies and Overvalued Equity on Stock ‎Price Crash Risk with regard to intermediate role of companies’ ownership. Thus, the financial information of 91 companies listed in the Stock Exchange of which 14 ones with institutional entities and 77 companies with corporate ownership, has been used within years 2012 to 2017. The results figure out that business strategy has a positive and significant relationship with the overvalued equity and stock price crash risk; type of company’s ownership has not impacted on this relation, that is, in the companies with aggressive business strategy, stock price crash risk and overvalued equity are higher.