Factor Effect on Financial Analysts trust to Manager

Subject Areas : Journal of Investment Knowledge

Shadi Shahverdiani ¹ , Mahtab Radfar ²

1 - Assistant professor of IAU, Shahre quds Branch
2 - M.A in Finance

Received: 2013-04-09 Accepted : 2013-07-21 Published : 2013-07-21

Keywords: Managers, Financial Analysts, Trust, Behavioral Finance,

Abstract :

Corporate managers present financial reports in order to reveal their performance and financial status of corporation and then financial analysts use financial statements as a basis of making investment suggestions. Obviously investors don’t have any role in managing companies directly and therefore they have to make their decisions trusting financial statements. In financial markets, financial analysts have to trust managers, even considering the fact that statements can be incorrect. Consequently, exploring influential factors in financial analysts’ trust to corporate managers seems necessary. As financial behavioral is a kind of newborn field of finance, it’s essential that future researches should be directed towards it and implementation of it should be checked in developing markets like Iran’s. Financial behavioral is presented against classical economic theory which is based on some simplifying hypothesizes. Main findings of this research are: 1. Qualification, honesty, competence, cultural factors and social factors are very influential in financial analysts’ trust to managers. 2. Integrity, benevolence and personal factors, have average influence in financial analysts’ trust to managers. 3. Being faithful to Islam has little influence in financial analysts’ trust to managers. On the basis of findings, it can be said that an organization which has a qualified, honest, competent, well-behaved (cultured) and sociable manager, will be trustable; that it can lead to a good atmosphere and can provide a necessary condition of efficient market.