The Impact Of Heuristic Biases In Investment Decision-Making And Perceived Market Efficiency A Survey At The Tehran Stock Exchange

Subject Areas : Financial and Behavioral Researches in Accounting

Mohammad Sayrani ¹ , Moharram razmjoy ² , Raheleh Samari ³

1 - Faculty of Industrial Engineering, Management and Accounting, Shahab Danesh University. Qom. Iran
2 - Faculty of Industrial Engineering Managment and Accounting, Shahab Danesh Univercitiy, Qom. Iran
3 - Faculty of Industrial Engineering, Management and Accounting, Shahab Danesh University, Qom, Iran

Received: 2023-05-30 Accepted : 2023-06-25 Published : 2023-06-22

Keywords: Availability, Anchoring, Keywords : Overconfidence, Representativeness, Investment decisions and Market efficiency,

Abstract :

After the global crisis of 2008 and the severe fluctuations of financial markets around the world, the study of investor behavior has received more attention in the field of behavioral finance, and investors' emotions have been one of the key factors determining market movements. Behavioral finance is an evolving field that studies how and what. In this context, it seems important to study the role of emotions such as fear, greed, expectation, as well as the impact of the unconscious mind and beliefs in shaping investment decisions and its impact on market efficiency. This thesis seeks to find an important impact. The most behavioral financial concepts (or cognitive biases) such as overconfidence, stereotypes, familiarity and reliance on individual investors' decisions and market efficiency in Tehran Stock Exchange.The primary data for testing the research model was collected by distributing a structured questionnaire among 400 individual investors active in the Tehran Stock Exchange, and the data of 386 investors was used as the basis for processing. Also, structural equation modeling or partial least squares method was used for data analysis.The findings of this research show that there is a positive and significant relationship between overconfidence biases and representation with the perceived efficiency of the market and investors' decisions, as well as a negative and significant relationship between familiarity with market efficiency and investors' decisions. Yes, but the significance of the relationship between these two variables with reliance bias was not confirmed.

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