Investigating the factors influencing the interpretation and understanding of risk for capital decision making Investment in investment funds
Subject Areas : Financial Markets and Institutions
1 - Department of Accounting, Sav.C., Islamic Azad University, Saveh, Iran
Keywords: Expanded approach of Prometheus, Interpretation and understanding of risk, Investment fund services,
Abstract :
Purpose: The objective of this study is to investigate the factors influencing the interpretation and perception of risk in investment decision-making concerning mutual funds, based on the extended PROMETHEE (Preference Ranking Organization METHod for Enrichment Evaluations) approach.
Research Methodology: This study is applied in nature and employs a non-experimental data collection method. The first population comprises faculty members in the fields of accounting, financial management, and social sciences from top-tier Iranian universities. The second group includes capital market participants and CEOs and CFOs of mutual funds listed on the Tehran Stock Exchange. Interviews were conducted in 2022 (1401 SH). To identify the influential factors, the Delphi method was applied, and to prioritize them, the PROMETHEE method was used via the Visual PROMETHEE software.
Findings: According to the results, "investor fear" was ranked as the most influential factor, whereas "others’ opinions regarding the risk tolerance of mutual funds" received the lowest ranking. Overall, the findings indicate that the interpretation and perception of risk have a positive impact on investment decision-making in mutual funds.
Originality / Value: This study aims to assist individuals interested in mutual fund investments by enhancing their understanding of risk-related decision-making. By refining the methodology, the research provides more efficient tools for scholars and practitioners to evaluate mutual fund services and make informed investment decisions. The application of advanced multi-criteria decision-making (MCDM) techniques enhances the reliability and relevance of the results for both academic and practical use.
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