Antecedents and Consequences of Individual Investors' Behavior in the Iranian Capital Market Relying on Neural Financial Aspects: A Mixed Approach

Subject Areas : business management

morteza maryami yaghoubian ¹ , ali najafi moghadam ² , Farideh Haghshenas Kashani ³ , bita nasrolahi ⁴

1 - Department of Management and Economics, Science and Research Branch, Islamic Azad university, Tehran, Iran
2 - Department of Management and Economics, Science and Research Branch, Islamic Azad University, Tehran, Iran
3 - Department of Business Management and Entrepreneurship, Central Tehran Branch, Islamic Azad University, Tehran, Iran
4 - Department Of Psychology, Research and Sciences Branch, Islamic Azad University, Tehran, Iran

Received: 2022-06-19 Accepted : 2022-08-24 Published : 2023-06-22

Keywords: demographic factors, Grounded Theory, Individual investor behavior, neuropsychological factors,

Abstract :

The present study mainly aims to model the individual investors' behavior in the capital market following the neural financial approach. The present study is categorized as mixed method research. The grounded theory and the technique of the structural equations were used in the qualitative and quantitative parts. Data were collected through semi-structured interviews and a researcher-made questionnaire. The sampling continued until theoretical saturation, which was achieved after 17 interviews. Then, the behavioral model of individual investors with antecedents and consequences was developed based on the systematic approach of Strauss and Corbin's theory in three main steps, including open, axial, and selective coding. The results indicated that the causal conditions affecting investors' behavior in the same contextual conditions are generally in two main groups of neuropsychological and demographic factors. In a quantitative part, it was found that neuropsychological factors are effective with an intensity of 79%. Among the components of this variable, emotional behavior and location had the most and the least impacts, respectively, and the demographic factors were effective with an intensity of 12%. Financial support and gender also had the most and the least impact among the components of this variable, respectively.