Explaining the effects of investors' feelings, trust and diversity on corporate investment performance

Subject Areas : business management

hosein mahmoudzade ¹ , zadollah fathi ²

1 - Department of Accounting, Sirjan Branch, Islamic Azad University, Sirjan, Iran
2 - Department of Industrial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2021-07-09 Accepted : 2021-08-22 Published : 2022-03-21

Keywords: Trust, Emotional tendencies, investment diversification,

Abstract :

The purpose of this study is analyzing the effects of Sentimental tendencies and investor trusts and diversity on the level of investment of companies. The statistical population is the companies listed on the Tehran Stock Exchange by Systematic elimination sampling method and 128 companies during the period from 1390 to 1399 were studied. The econometric method in this research is the System of Simultaneous Equations (3SLS). Findings show that the effects of investor trust on the investment rate is positive and significant and shows that increasing investor trust will lead to increased liquidity with the market and increase prices and profits and thus increase investment. The results show that Sentimental tendencies in companies accepted in Tehran Stock Exchange on the level of investment are negative and significant and show that in the long run, emotional tendencies lead to volatile movements and sudden outflow of liquidity from the stock market and reduce investment in companies.