Investigating the effect of emotional intelligence on financial decision making with the mediating role of investors' mood in the stock market

Subject Areas : Financial and Behavioral Researches in Accounting

abas samadi ¹ , roholah sohrabi ² , elham rezaei ³ , negin maghsod ⁴

1 - department accounting and management .faculty economy and social scince .bu ali sina university
2 - Assistant Professor, Faculty of Economics and Social Sciences, Bu Ali Sina University, Hamadan, Iran
3 - Master of Business Administration, University of Tehran
4 - Master student of business management at Bu Ali University

Received: 2022-04-26 Accepted : 2022-06-09 Published : 2022-05-22

Keywords: The Mood of the Investor, financial decision making, Behavioral Finance, emotional intelligence,

Abstract :

Investors face problems in making financial decisions. People who have no control over their emotions make irrational decisions. On the other hand, daily moods have a great impact on financial decisions. In this study, the effect of psychological variables of emotional intelligence mediated by mood on investors' decision making has been investigated. The research method is applied in terms of purpose and descriptive and survey in terms of nature. The statistical population is investors in the city of Hamedan. The data collection tool in this study is based on a questionnaire. The Baron Emotional Intelligence Questionnaire with 90 scores, the Panas Questionnaire with 20 scores were used to measure the mood variable and the Bruce and Scott Decision Making Scale with 25 scales. In order to confirm the validity of this questionnaire, in addition to confirming the face and content validity, construct validity was used. Data analysis was performed by linear regression tests. It was concluded that there is a relationship between emotional intelligence and financial decision making. One of the minor results is the lack of relationship between emotional intelligence and intuitive decision making and the negative relationship between emotional intelligence and rational decision making but emotional intelligence is directly related to three styles of dependence, instant and avoidance . But the other result is that positive mood such as enthusiastic, active, alert is not related to intuitive decision making and is positively related to rational, instantaneous and avoidant decision-making style and negatively related to dependent decision-making style.

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