Presenting the behavioral model of traders' financial decisions in the Iranian capital market

Subject Areas : Financial engineering

Ahmad Arian Tabar ¹ , Maryam Bokharayn ² , Parviz Saeedi ³ , Maryam Nouraei ⁴

1 - Department of Finance, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran.
2 - Assistant Professor, Department of Accounting, Aliabad Katul Branch, Islamic Azad University, Aliabad Katul, Iran
3 - Professor, Department of Management, Aliabad Katoul Branch, Islamic AzadUniversity, Aliabad Katoul, Iran.
4 - Assistant Professor, Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran

Received: 2024-03-20 Accepted : 2024-09-07 Published : 2024-12-24

Keywords: neurofinance, rational decisions, capital market investors, hormones.,

Abstract :

Since it is not possible to accurately predict the future, most investment decisions are made with uncertain results. Recent advances in neuroscience and endocrinology have helped to reveal a biological mechanism related to economic decisions and thus potential factors related to individual differences in decision making. The data in this research was collected in the field and in the library through questionnaires and clinical tests, an invasive (serum) blood test method was used to measure hormones. The research samples include 77 people from known investors. The information has been processed and analyzed with Samart pls statistical software.The studied hormones include Testosterone, Cortisol 8 A.M., Free Testosterone and Thyroid (T3, T4 and TSH). The analyzes show that Testosterone is the only hormone that has a direct effect on optimism, decoy and risk-taking, and Free Testosterone hormone on risk-taking and decoy, T4 hormone on optimism and risk-taking, and T3 hormone on risk-taking have an inverse and significant effect on investors' behavior and the level of cortisol and TSH hormones has no significant effect on investors' behavior.

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