Investigating the cultural factors affecting on risk perception of investors in Tehran Stock Exchange (TSE)

Subject Areas : Journal of Cultural Management

احمد ناطق گلستان ¹ , فریدون رهنمای رودپشتی ² , احمد یعقوب نژاد ³

1 - ندارد
2 - مسئول مکاتبات
3 - ندارد

Received: 2014-08-29 Accepted : 2014-08-29 Published : 2013-09-23

Keywords: Value, risk perception, Investment Culture, Cultural Factor,

Abstract :

Introduction: Risk & return are two critical factors in decision making of investors that according to existing research total risk from one perspective consist of  two factors these are subjective & objective risk that leads to investors decision making.Different factors affect risk perception of investors that one more important  is cultural variety. Evaluating the cultural factors in the area of financial management on the risk perception of investors is very important, because different behaviors and decisions are required in different cultures facing the prices, price fluctuations and important or non-important published news of portfolio. Method: In this paper, a questionnaire was designed including 22 cultural items in three criteria of values, facilities and behavior in order to measure the cultural factors affecting risk perception in Tehran  stock exchange. Experts’ comments were used on the design of items and quintet Likert spectrum was applied for the answers. Structural equation modeling, or multivariable analysis with latent variables, is a comprehensive statistical approach for testing the hypotheses about relationships between observed and latent variables. Such analyzes have been done by LISREL software Findings: Results indicate that the three components of the "values", "Infrastructure" and "behavior", respectively, with values ​​of 0.86, 0.55 and 0.81,affect on  investor risk perception in the Tehran Stock Exchange. Also, in the measurement model, it is observed that between values and Infrastructure with behavior respectively values ​​of 0.47 and 0.7 and Between infrastructure and behavior, there is little correlation of 0.44. Conclusions: the results showed that there was a significant relationship between risk perception and its triple factors and also between the items and triple factors affecting on risk perception.