Behavioral biases and decisions of real and legal investors under conditions of uncertainty in Tehran Stock Exchange

Subject Areas : Journal of Investment Knowledge

mohammad zeynivand ¹ , mohammad hasan janani ² , mahmod hematfar ³ , mohammad reza setayesh ⁴

1 - PhD Student, Department of Accounting, Boroujerd Branch, Islamic Azad University, Boroujerd, Iran
2 - Department of Accounting, Boroujerd Branch, Islamic Azad University, Boroujerd, Iran.
3 - Department of Accounting, Boroujerd Branch, Islamic Azad University, Boroujerd, Iran.
4 - Department of Accounting, Boroujerd Branch, Islamic Azad University, Boroujerd, Iran.

Received: 2021-07-22 Accepted : 2021-09-13 Published : 2023-03-21

Keywords: investment decisions, market uncertainty, Behavioral Biases,

Abstract :

In this study, the behavioral biases and decisions of real and legal investors under conditions of uncertainty in the Tehran Stock Exchange were investigated. For this purpose, two market conditions including uncertainty due to uptrend without resistance and uncertainty due to downtrend without support are studied as conditions of uncertainty in investment decisions and the effect of 15 behavioral biases of investors in two groups of investors. Real and legal were tested on financial decisions based on buying, selling or not taking action for the transaction. The statistical population of the study included real and legal investors in the Tehran Stock Exchange, of which 385 real investors and 100 legal investors were selected by available sampling method and research questionnaires were provided to them. In order to analyze the data obtained from the distribution of the questionnaire, the fitting of polynomial logistic regression models was used and the results showed that the behavioral biases of real and legal investors had different effects on their investment decisions and also the type of influence of each. Behavioral biases on a variety of investment decisions have varied due to market uncertainty. Finally, models were proposed to predict the investment decisions of both groups of real and legal investors using their behavioral biases.

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