Comparison of antecedents and consequences of financial behavior of momentum and random investors (mixed approach)

Subject Areas : Financial Knowledge of Securities Analysis

Fatemeh Jafari ¹ , Reza Aghajan Nashtaei ² , Mohammad Hassan Gholizadeh ³

1 - PhD student of Financial engineering, Department of Management, Rasht Branch, Islamic Azad University, Rasht, Iran.
2 - Department of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran
3 - Department of Management, University of Guilan, Rasht, Iran

Received: 2022-10-28 Accepted : 2023-01-08 Published : 2023-07-23

Keywords: Behavioral Finance, momentum investment, random investment, Mixed Method,

Abstract :

The main goal of this research is to present the behavioral model of momentum and random investors in the Iranian stock market and to estimate the factors affecting it. In this way, the antecedents and consequences of the financial behavior of momentum and random investors can be compared. Applied research has been done in a mixed method. Qualitative part of foundation data theory and quantitative part of structural equation technique. The data collected through semi-structured interviews and questionnaires, theoretical sampling continued until the categories were saturated, and interviews conducted with 24 Momentum and Random investors. Then, based on the theoretical systematic approach of Strauss and Corbin in the three main steps of open coding, central coding and selective coding, the behavioral model of both types of investors presented in terms of components, antecedents and consequences. In the following, research hypotheses formulated and tested in the quantitative part of the hypotheses. The results indicate that among the causal conditions of momentum investors' behavior, individual factors, psychological factors of the market, investor's feelings during the transaction and news and information have a significant effect. In addition, among the causal conditions of random investors' behavior, demographic factors, mental and emotional states and conditions, shareholders' expectations and news and information have a significant impact.

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