Behavioral biases and decisions of individual and institutional investors based on technical information in Tehran Stock Exchange

Subject Areas : Financial Economics

محمد زینی وند ¹ , محمد حسن جنانی ² , محمود همت فر ³ , محمدرضا ستایش ⁴

1 - گروه حسابداری،واحد بروجرد، دانشگاه آزاد اسلامی، بروجرد ،ایران
2 - گروه حسابداری‌‌‌‌‌‌‌‌، واحد بروجرد‌‌‌‌‌‌‌‌، دانشگاه آزاد اسلامی‌‌‌‌‌‌‌‌‌، بروجرد ایران
3 - گروه حسابداری‌‌‌‌‌‌‌‌، واحد بروجرد‌‌‌‌‌‌‌‌، دانشگاه آزاد اسلامی‌‌‌‌‌‌‌‌‌، بروجرد ایران
4 - گروه حسابداری‌‌‌‌‌‌‌‌،واحدبروجرد‌‌‌‌‌‌‌‌،دانشگاه آزاداسلامی‌‌‌‌‌‌‌‌‌،بروجردایران.

Received: 2021-09-23 Accepted : 2021-11-24 Published : 2021-12-22

Keywords: G19, G11, JEL: G41,

Abstract :

In this study, the behavioral biases and decisions of individual and institutional investors based on technical information in the Tehran Stock Exchange were investigated. For this purpose, two market situations, including the passage of support and proximity to resistance, and the decline of resistance and proximity to support as technical levels in investment decisions have been studied and the effect of 15 behavioral biases of investors in both groups of individual and institutional investors on financial decisions based on buying, selling or not taking action for the transaction were tested. The statistical population of the study included individual and institutional investors in the Tehran Stock Exchange, which 385 individual investors and 100 institutional investors were selected by available sampling method, and the questionnaires were provided to them. In order to analyze the data obtained from the questionnaire, polynomial logistic regression models was used and the results showed that the behavioral biases of individual and institutional investors had different effects on their investment decisions at the levels of resistance and support, and behavioral bias among individual investors has also been more predictive of their investment decisions. The results also showed that the behavioral biases of short-sightedness, excessive optimism and one-dimensional analysis were the same between the two groups of investors.  

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