investigating the role of arbitrage costs and feelings in the relationship between fundamental power strategy and stock returns

The aim of the present study was to investigate the fundamental power strategy in the stock market, considering the role of arbitrage cost versus feelings in companies listed on the tehran stock exchange. the spatial domain of this research was the companies listed on the tehran stock exchange, and the temporal domain encompassed the years between 2014 and 2019. the present research is classified as an applied study, characterized by its descriptive nature and correlational method. a library method was employed to collect data and information for this study. through the systematic elimination method, 139 companies were selected as the statistical sample. descriptive and inferential statistics were utilized to describe and summarize the collected data. to analyze the data, several tests were conducted including variance heterogeneity test, f-limmer test, hausman test, and jarque-bera test. subsequently, a multivariate regression test was employed to confirm or reject the research hypotheses using eviews software. the results indicated that the fundamental power strategy could predict future returns, and both shareholder feelings and arbitrage cost enhanced the relationship between the fundamental power strategy and stock returns.