Extracting the Customer's Behavioral Finance Model in Iran’s Development Banking using multi-group modeling technique (Case Study: Bank of Industry and Mine)

Subject Areas : Journal of Investment Knowledge

Mohammad Hossein Lotfolah Hamadani ¹ (PhD student of governmental management-financial management, Department of Management, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran,)
Mohsen Dastgir ² (Professor of Accounting, Isfahan (Khorasgan) Branch,Islamic Azad University, Isfahan, Iran)
seyed ali heidari ³ (Visiting Professor, financial management department, faculty of financial sciences, Kharazmi University, Tehran, Iran)

Received: 2019-09-28 Accepted : 2019-12-03 Published : 2020-11-21

Keywords: Customer, Behavioral Finance, Multi-group modeling,

Abstract :

Behavioral finance theory, which is generally interpreted as the application of psychology in financial science, has challenged the fundamental principle of neoclassical economics and tries to identify the human psychological phenomena in the whole market and at the personal level. The aim of the current research is to extract behavioral finance model of customers in development banks of Iran using multi-group modeling technique in Bank of Industry and Mine. To this purpose, the current research was conducted in two stages. In the first stage, or qualitative part, a total of 20 persons of experts were selected to identify research variables. In the second stage, or qualitative part, the statistical data in two periods of time: 2012-2014 and 2015-2017 were collected and assessed using multi-group modeling technique. The obtained results showed that bank factors and customer factors in different periods may not have significant effect on financial behaviors of customers, but intervening variable (environmental factors), highly affect the financial behavior of customers, indicating that the financial behavior of customers in Iran is more under the influence of macroeconomics and its policies. Based on the results of this study, customers pay more attention to the key factors such as economic growth rate, per capita income and interest rate in order to interact more with the development bank which is receiving and paying the facilities and credits. Thus, this banks should look for some methods to increase the attraction of resources and decrease the credit risk under the conditions of economic fluctuations.

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