Behavioral Finance

Open Access Article

1 - The effect of CEO narcissism on debt maturity structure
Mahmood Hasanzade Kuchou

Purpose: The results of previous research have shown that the use of short-term debts can ultimately cause unfavorable financial performance of the company in the long term. Behavioral finance theories also state that in the decision-making of managers and investors, in More

Purpose: The results of previous research have shown that the use of short-term debts can ultimately cause unfavorable financial performance of the company in the long term. Behavioral finance theories also state that in the decision-making of managers and investors, in addition to information, a series of viewpoints and psychological factors also influence their decisions. The purpose of this research is to investigate the effect of CEO narcissism on the maturity structure of debts. Methodology: Using the data of 85 companies listed in the Tehran Stock Exchange, in the period of 2018 to 2022, the hypotheses were tested using multiple regression. Findings After statistical analysis, the results of the research hypotheses indicate that CEO narcissism has a positive and significant effect on the maturity structure of debts. In this research, two indicators of managers' bonus ratio and the size of CEO signatures were used to measure CEO narcissism. Originality: The results of research hypotheses indicate that CEO narcissism has a positive and significant effect on debt maturity structure. This means that with the increase of narcissism of managers, the use of short-term debt increases. Narcissistic managers try to match the asset structure and the debt maturity structure in order to pay the debts. Hence, in the period under their management, the maturity period of the debt structure is reduced when the company can increase its profits. Manuscript profile

Open Access Article

2 - On the Behavioral Difference Between Institutinos and Individuals Investors after the Weekend
M. Khaliliaraghi F. Rahnamaye roud poshti A. Joudaki

This paper compares the trading patterns of individuals and institutions investors during the datefollowing the weekend. The comparison is based on transactions of a large sample of investors who dosell and purchase stocks for 166 weeks in a major brokerage hall in Tehr More

This paper compares the trading patterns of individuals and institutions investors during the datefollowing the weekend. The comparison is based on transactions of a large sample of investors who dosell and purchase stocks for 166 weeks in a major brokerage hall in Tehran from 2004 Mar. 27th to2007 Feb. 5th.This paper is based on applied goal and on the basis of data collecting is casual comparretive, due tocomparison survey of investor’s behavior before and after weekend.We find that weekends influence both individuals and institutions investors, however they affect themin opposite directions.Individuals increase both their buy and sell accctivities after weekend.On the other hand institutions tend to perform fewer buy as well as sell trades after the weekend, butunlike individuals, the drops in their activity are almost the same for buy and sell trades.We find out collectively volume of transaction institutions investors is more than individuals becauselots of exchanges are dedicated to them. Manuscript profile

Open Access Article

3 - E-Garch and Modeling of Market Volatility Based on Noise Trading
Abdolmajid Abdolbaghi Siavash Sbour Maryam Bagheri Rafi

The presence of noise traders with fanatical attitude in financial markets is considered as a reason for the divergence of price and risk from predicted levels, but on the other hand the absence of noise traders might cause dwindling of market volatility. Generally, tho More

The presence of noise traders with fanatical attitude in financial markets is considered as a reason for the divergence of price and risk from predicted levels, but on the other hand the absence of noise traders might cause dwindling of market volatility. Generally, those who execute their trades based on market noise have poor understanding of the validity of receiving information, nevertheless a major part of traders falls into this category. The following study evaluated fluctuation of noise trading, using EGARCH (exponential general autoregressive conditional heteroscedastic) model for the price index of the Tehran stock exchange market from 2012 to 2016. There was a meaningful relation between the noise and market return, so that an increase in noise trading resulted in market return growth and a decline in noise trading altered fluctuation to a smoother trend. Furthermore, the growth of trade value, turnover and number of trades was related to the rise in noise trading. Manuscript profile

Open Access Article

4 - Examination of the Relation between Managerial Overconfidence and Financing Policies in Tehran Stock Exchange
Kazem Chavoshi Mohammad Rastegar Mohsen Mirzaee

One of the most important decisions faced the firm's managers, is financing decision. Making this kind of decisions has important effects on stockholders’ risk and wealth. However recognizing the factors that affect these decisions has more importance. Many factor More

One of the most important decisions faced the firm's managers, is financing decision. Making this kind of decisions has important effects on stockholders’ risk and wealth. However recognizing the factors that affect these decisions has more importance. Many factors influence the financing decisions in the firms that can be classified into two groups: the factors related to firm structure such as agency problems, firm size, insolvency and factors which are related to the management behavioral characteristics such as conservatism, overconfidence. This paper is going to study the effect of one of the psychological factors (overconfidence) on firm's financing decisions. For this purpose we use a panel data of 157 firms from listed companies in Tehran Stock Exchange over the period 2006-2012 The results – based on fixed effect panel data method – show that there is no relation between managerial overconfidence and financing decisions. In addition, it has shown that there are significant relations between growth opportunity, firm size and insolvency risk with financing decisions. Manuscript profile

Open Access Article

5 - The effect of financial intelligence on the behavior of customers using credit cards in the branches of Bank Mellat in Tehran
Akbar Eftekhari Aliabadi

Today, understanding the concepts and skills associated with financial literacy and intelligence is essential, because it is capable of maintaining the consumer in order to survive in modern society and resist the diversity and complexity of existing financial products More

Today, understanding the concepts and skills associated with financial literacy and intelligence is essential, because it is capable of maintaining the consumer in order to survive in modern society and resist the diversity and complexity of existing financial products and services.This article aims to explore the impact of financial intelligence on the behavior of customers that using credit cards in branches of Bank Mellat in Tehran. In other word, this paper aim to realizing customer's behavior and planning for appropriate action for the optimal use of credit cards by them. For this purpose, out of the 3,600 customers of the Mellat Bank, 347 persons has been selected by Cochran's sample size formula at the level of %5.A standard questionnaire has been used in order to collect data. With Cronbach's alpha 0.962, the reliability of it has been confirmed. In other side to questionnaire content validation and verify the factor structure of a set of observed variables used from Confirmatory factor analysis (CFA) Method. Also, to analyze the results of the questionnaire using structural equation method via Lisrel software. The results show that the financial intelligence on the behavior of customers using credit cards in branches of Bank Mellat in Tehran is effective. Also the financial behavior and financial education are directly and indirectly effective on the behavior of using credit cards among customers of Mellat Bank Branches in Tehran, but financial literacy has no effect on the behavior of using a credit card. Manuscript profile

Open Access Article

6 - Service Marketing Mix and Its Effects on Stakeholders' Behaviors
Akbar Eftekhari Aliabadi mohmad Hemmati Rozbahani

In this study, relying on theoretical principles of behavioral finance and marketing mix, the effects of marketing mix and its factors has been examined on Tehran stock exchange stakeholders' behaviors. In this paper, based on 5 years periods from the begging of 1389 to More

In this study, relying on theoretical principles of behavioral finance and marketing mix, the effects of marketing mix and its factors has been examined on Tehran stock exchange stakeholders' behaviors. In this paper, based on 5 years periods from the begging of 1389 to the end of fiscal year 1393, the assumption as effects of the service marketing mix and its variables on stakeholders' behaviors among services firms which accepted in the Tehran stock exchange has been tested.This study, as an applied research uses correlation methods specifically the structural equation modeling (SEM) to investigate the relation between service marketing mix variables' namely product, price, place, promotion, people, process, physical evidence as independent variables and stakeholders' behaviors as dependent variable.According to the descriptive data analysis and structural equation modeling results, we've found that the Tehran stock exchange stakeholders' behaviors has significant relation with service marketing mix concept and its variables. Manuscript profile

Open Access Article

7 - Angel Investors: Examining Behavioral Finance Factors Influencing Investment Selection
Yahya Hassas yeganeh M. H. Ebrahimi Sarv Olia S. Soroush Ghazi nouri Adel Afkhami

Angel financing is a critical stage in companies' growth, which a lot of companies fail because of inability in raising money. Absorbing capital from these people is affected by various behavioral finance factors. So, this paper aims to determine and examine behavioral More

Angel financing is a critical stage in companies' growth, which a lot of companies fail because of inability in raising money. Absorbing capital from these people is affected by various behavioral finance factors. So, this paper aims to determine and examine behavioral finance factors which affect investment selecting. In this process, after studying background and history of related research, 23 variables were collectively were given to a pilot group which we reached the consensus by removing some factors. The research questionnaire was then designed according to these remained factors. In the next step, using a sample with 183 members of angel investors, behavioral finance factors were asked. Our data were analyzed then by exploratory factor analysis. Seven latent variables include: Hope, Retrospective, Simplistic, Confidence, Risk Taking, Mental-Accounting, Self -Attribution were realized as effecting behavioral finance factors. These factors then were analyzed by confirmatory factor analysis in terms of a hypothesis to confine the number of factors to seven factors, which finally this hypothesis was accepted. Manuscript profile

Open Access Article

8 - بررسی تأثیر عامل حساسیت سهامداران، ویژگی های سهام شرکت ها و اثر مومنتوم بر بازده سهام و عملکرد مالی شرکت های پذیرفته شده در بورس اوراق بهادار تهران
Davood Hamzeh Maryam Khalili Araghi Kambiz Peikarjoo

Investors invest in stock market to gain benefit, so always trying to make a reasonable relationship between the stock price, return and the financial performance; therefore, it is important to identify the effective factors. In this study, effect of investor’s se More

Investors invest in stock market to gain benefit, so always trying to make a reasonable relationship between the stock price, return and the financial performance; therefore, it is important to identify the effective factors. In this study, effect of investor’s sensitivity, stocks properties and the momentum effect on stocks return and financial performance were reviewed and analyzed over the period of 1386 to 1392. The statistical population of this research study is the companies listed on the Tehran Exchange Stock, and the linear regression was used for assumption testing.Methodology- This research is practical, and has examined effect of investor’s sensitivity, stocks properties and the momentum effect on stocks return and financial performance. For the shareholder’s sensitivity evaluation, the EMSI indicator has been used.Results- The shareholder’s sensitivity indicator depicted that investors had risk aversion great deal of 37.48%, during the period of investigation. Hypothesis test results presented that the sensitivity of the shareholders indicator, the ratio of book value of company to the market value, firm’s size and stocks volatility had a significant effect on stock returns. With studying effect of mentioned factors on the performance indexes, following result indicated:Shareholder’s sensitivity, firm size and the ratio of book value of company to the market value have a significant effect on company’s asset return.Firm’s size, stocks volatility and the ratio of book value of company to the market value have a significant effect on stockholder’s equity return.Firm’s size and the ratio of book value of company to the market value have a significant effecton Tobin’s Q ratio.Shareholder’s sensitivity, firm size and the ratio of book value of company to the market value have a significant effect on the ratio of stock prices to corporate profits. Manuscript profile

Open Access Article

9 - Investors' Overreaction in IRAN Stock Market to Global Financial Crisis News
فرشاد هیبتی وحید زندیه

Over the past three decades, the Efficient Market Hypothesis (EMH) has been the foundation for financial asset pricing, and the leading hypothesis in the finance literature to explain and predict the behavior of investors. There are, however, two extensions to the EMH i More

Over the past three decades, the Efficient Market Hypothesis (EMH) has been the foundation for financial asset pricing, and the leading hypothesis in the finance literature to explain and predict the behavior of investors. There are, however, two extensions to the EMH in the behavioral finance literature that investigate investor reaction when security prices do not adjust instantaneously, the Overreaction Hypothesis (OH) of DeBondt and Thaler (1985) and the Uncertain Information Hypothesis (UIH) of Brown, Harlow and Tinic (1988, 1993). In the other side, we know that Iran international trade volume is not expanded and direct taking impression of Iran security market to global financial recessions and expansions is in doubt. Therefore, observed investors' sentiment in Iran stock market to recent global financial crisis news has resulted in doubt on efficiency of this market, regardless of long or short term return for sensitive industries to this crisis. Thus, we felt need to recognize investors' sentiment to achieve behavioral finance patterns that would be consistent to Iran stock exchange and can be utilized to behavioral modeling of securities. We determined to evaluate and express behavior of investors in Iran stock market for the period 27 April 2008 to 25 April 2010, based on two hypotheses OH and UIH. Our findings show that shareholders' return is consistent with aforesaid two hypotheses and thereupon increase in market uncertainty in some securities, as well as investors' overreaction in some industries while issuance news of arrival and/or recovery global financial crisis. Manuscript profile

Open Access Article

10 - Studying the relationship between default risk and momentum effect: based on evidence from firms listed on Tehran stock exchange
Mir Feiz Fallah Sham Maysam Ahmadvand Hadi Khajezadeh Dezfuli

This paper analyzes the role of default risk in the momentum effect focusing on data from Tehran stock exchange during 19/04/2009-21/07/2015. Default risk was calculated by a measure based on the Black-Scholes-Merton (BSM) option pricing model, where a firm’s defa More

This paper analyzes the role of default risk in the momentum effect focusing on data from Tehran stock exchange during 19/04/2009-21/07/2015. Default risk was calculated by a measure based on the Black-Scholes-Merton (BSM) option pricing model, where a firm’s default risk is derived from the market prices of its shares. This method overcomes some of the problems associated with the default risk measures used in prior studies. To describe momentum effect, by determining the formation period to be 6 months, and the holding period to be 3, 6, or 12 months, we firstly examined the profitability of short term (3/6), midterm (6/6), and long term (12/6) momentum strategies and found that during abovementioned time period, only midterm momentum strategy is profitable. Then, we showed there is no relationship between default risk and momentum effect. While the loser portfolio is characterized by high default risk, small size, high book-to-market ratio and illiquidity, characterization of the winner portfolio is somewhat more complex. This makes momentum profits difficult to forecast. Manuscript profile

Open Access Article

11 - Exploring the effect of investors' personality on their investment performance with mediating role of heuristic biases
A. Ebrahimi Lifshagard Kamran Pakizeh Kamiyar Raisifar

In this research, personality traits, heuristic biases and their effect on the investment performance will be assessed . The research is such an applied survey research and has been carried out over 2016 fall and 2017 winter.In order to reach this goal, the matter was i More

In this research, personality traits, heuristic biases and their effect on the investment performance will be assessed . The research is such an applied survey research and has been carried out over 2016 fall and 2017 winter.In order to reach this goal, the matter was investigated between 154 individual investors in financial institution in Tehran capital market by using questionnaire tool, random sampling and PLS method .After data processing in the research analytical model framework, the result showed that there is a positive relationship between personality traits and investment. There is also a significant and positive relationship between heuristic biases variables and investment performance. There is positive relationship between personality traits and heuristic. about indirect effect of independent variables on dependent variables it can be concluded that personality traits by mediating rule of the heuristic biases affect positively investment performance with low coefficient path and significant. Manuscript profile

Open Access Article

12 - Comparison of antecedents and consequences of financial behavior of momentum and random investors (mixed approach)
Fatemeh Jafari Reza Aghajan Nashtaei Mohammad Hassan Gholizadeh

10.30495/jfksa.2023.22615

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 invest More

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. Manuscript profile

Open Access Article

13 - The Seasons Effect on the Total Stock Prices for 50 Active Companies in Tehran Stoch Exchange
Zohre Hajiha

This research is on a new field of investment management titledbehavioral finance. The research is about one of the anomalies of theinvestment market named “Visceral inferences “, that proposes there aresome differences and anomalies in the basic variables i More

This research is on a new field of investment management titledbehavioral finance. The research is about one of the anomalies of theinvestment market named “Visceral inferences “, that proposes there aresome differences and anomalies in the basic variables in the market likeshare prices ,in different seasons .therefore, investors can obtainabnormal return in certain seasons. In this study total share prices for 50active companies produced by TSE are examined for the period of 1382to 1386 to compare the reasons if there are any differences betweenprices in any season.The results show significant differences between prices of 50 activecompanies in Tehran Stock Exchange for spring and atom and in theatom average of prices are higher than other seasons . Manuscript profile

Open Access Article

14 - Modeling the Effect of Loss Averse Bias on Return Rate and Stock Price Dynamics (Application of Agent-Based Modeling in Behavioral Finance)
Moloud Raki Mohsen Mehrara Hosein Abasinejad Ali Souri

Standard asset pricing models based on rational expectations and homogeneity have problems explaining the complex and volatile nature of financial markets. The heterogeneity in expectations can lead to market instability and complicate dynamics of prices, which are driv More

Standard asset pricing models based on rational expectations and homogeneity have problems explaining the complex and volatile nature of financial markets. The heterogeneity in expectations can lead to market instability and complicate dynamics of prices, which are driven by endogenous market forces. Our aim is to point out that the investors’ irrationality explains various numbers of financial anomalies, especially the phenomena that traditional financials models have never been able to explain. using a behavioral finance approach and an agent-based model we examine the dynamics of stock price fluctuations and their rates of return in an artificial market composed of fundamentalists and non-fundamentalists with loss-adverse bias. our goal is to point out a posibility that loss-adverse feature of investors explains vast number of financial stylized fact and plays an important role in price formation of financial markets.The results of intensive analysis indicate that the existence of agents having heterogeneous beliefs and preferences has provided a better understanding of price dynamics in the financial market. Manuscript profile

Open Access Article

15 - Investigating the Effect of Auditors' Behavior Biases on Decision Making and Errors within Capital Market, with Emphasis on Auditor's Personal and General Characteristics
bakhtyar ashrafi zohre hajiha reza tehrani

Manuscript profile

Open Access Article

16 - Profitability of Momentum and Contrarian Strategies Based on Trading Volume in Tehran Stock Exchange: A Comparison of Emerging Market
Mahmood Yahyazadehfar Shahabeddin shams Saeideh Lorestani

Manuscript profile

Open Access Article

17 - The Evaluation Overreaction of Investors Toward Going Concern (GC) & Going Concern Withdrawal (GCW) Audit Reports
محمدرضا رستمی نازنین حکیمی فر

It has been assumed that investors react to new information in the efficient market.This reaction has been demonstrated in two terms of over reacting & under reacting.The evidence shows that investors overreact or under react to new information.Investors decision ma More

It has been assumed that investors react to new information in the efficient market.This reaction has been demonstrated in two terms of over reacting & under reacting.The evidence shows that investors overreact or under react to new information.Investors decision making could be affected by behavioral or psychological factors,they tend to overvalue or undervalue new information. The objective of this study is"investigating market over & under reaction toward going concern (GC) audit reportson Tehran Stock Exchange (TSE)". Study population of this paper includes allcompanies which are accepted by TSE. The required information has been collectedfrom daily, weekly & monthly reports of TSE. Analyses are performed throughLevene's test in order to test the equality of variances, and then we performed Tstudenttest and Prop-test to achieve proper conclusions. In order to predictsignificance of differences between the pure revenues, we fitted the logistic regressionmodel on the difference of the mean revenues and the type of companies.Consequently, with respect to the good behavior of confidence interval's to specifysignificant differences, we proposed the best model in this situation using qualitycontrol tool's, X-bar charts to determine whether the hypothesis is correct or weshould reject the previous result. Statistical tests demonstrate the existence ofoverreaction of mart with respect to presence or absence of activity condition. Manuscript profile

Open Access Article

18 - Investigation of the relationship between the organizational narcissism of managers with financial crises within the framework of the narcissism approach
mojtaba maleki choobari sina kherdyar keyhan azadi bahman akbari goovabari

Human resources are considered as a competitive advantage in each and every organization in the present era. The decisions, thoughts, and performance of managers can be effective in advancing organizational goals. Nowadays, more than any other time, opinions and perspec More

Human resources are considered as a competitive advantage in each and every organization in the present era. The decisions, thoughts, and performance of managers can be effective in advancing organizational goals. Nowadays, more than any other time, opinions and perspectives of managers have been considered in the organization-related theories. Therefore, identifying the personality traits of managers, including the narcissism of managers that affects their decisions, is important in different levels of the management and leadership of any organization. Managers of an organization, as much as they can be a competitive advantage for an organization, may become a serious impediment to achieving the goals of the organization and might create financial crises for an organization. This study aims at investigating the relationship between corporate narcissism and financial crises of the listed companies in Tehran Stock Exchange through using a statistical sample including 294 observations (year - firm) between the years 2017 and 2018. After statistical analysis of the data using mixed data regression analysis, the results of research hypotheses show that there is a statistically direct and significant relationship between the organizational narcissism of managers (authority, bragging, superiority, autocracy, exploitation, and narcissism) and financial crises. In other words, the higher the level of narcissism in organizations’ managers might be, the possibility of financial crises resulting from managers ' decisions and practices will be more likely to occur in that organization. Manuscript profile

Open Access Article

19 - Behavioral factors affecting on investors behavior in Iran different cultures
shahla ghorbani bejandi shadi shahverdiani

Sentiment and cognitive errors affect in decisions of investors when buying and selling stock.Cognitive Errors are kind of cognitive vulnerability in information processing.Factors such as culture cause bias in the decision‌-making process.The aim of this study is surve More

Sentiment and cognitive errors affect in decisions of investors when buying and selling stock.Cognitive Errors are kind of cognitive vulnerability in information processing.Factors such as culture cause bias in the decision‌-making process.The aim of this study is survey investors' behavioral biases including Over Confidence, Regret Aversion and Conservatism with an emphasis on culture factor.Questionnaires were collecting data from random investors of Tehran, Ahvaz, Tabriz, Isfahan, and Mashhad cities. Data were analyzed by SPSS software. Validity and Cronbach's Alpha also showed the credibility of the questionnaire. Our study showed, there is a significant correlation between culture and Over Confidence bias and relationship does not exit between Regret Aversion bias, Conservatism and culture. Manuscript profile

Open Access Article

20 - Extracting the Customer's Behavioral Finance Model in Iran’s Development Banking using multi-group modeling technique (Case Study: Bank of Industry and Mine)
Mohammad Hossein Lotfolah Hamadani Mohsen Dastgir seyed ali heidari

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 per More

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. Manuscript profile

Open Access Article

21 - Investigating the behavior of individual investors after the release of financial statements
Davoud gorjizadehbaee Mohammad hamed khan mohammadi

AbstractOne of the main sources of information for investors to make investment decisions is the information contained in the financial statements published by companies. Public disclosure of financial statements in the form of different information channels, generates More

AbstractOne of the main sources of information for investors to make investment decisions is the information contained in the financial statements published by companies. Public disclosure of financial statements in the form of different information channels, generates thoughtful reactions among investors. Audited financial statements convey the auditor's view of the feasibility and reliability of financial statements to users of financial statements, which is a useful tool in the decision making process.The purpose of this study was to investigate the behavioral response of individual investors after the publication of annual audited financial statements. The research method was applied in terms of purpose, field survey method and descriptive survey method. Data were analyzed using a standard questionnaire. The statistical population of this research is all real investors of Tehran Stock Exchange, of whom 403 were selected by simple random sampling. Data were analyzed by spss22 and Lisrel 8.50 software using structural equation method.The results of the data analysis show that the release of financial statements (good or bad news) has a significant effect on the behavior of individual investors. Manuscript profile

Open Access Article

22 - A heterogeneous agent pricing model and simulation investor’s behavior on big decline on Tehran stock exchange
Mehdi Khoshnood Fraydoon Rahnamay Roodposhti

Today much behavioral finance researches focuses on heterogeneous agent model (HAM) and agent based modeling (ABM). The purposes of this article presentation of heterogeneous agent pricing model at big decline on Tehran stock exchange and simulation investor’s beh More

Today much behavioral finance researches focuses on heterogeneous agent model (HAM) and agent based modeling (ABM). The purposes of this article presentation of heterogeneous agent pricing model at big decline on Tehran stock exchange and simulation investor’s behavior on agent based modeling framework with emphasis herd behavior and market sentiment. at first three big decline specified with several criterion : average of the share price indices , average value of the stock market turnover , average value of the stock market capitalization .according this three big decline are : 2005 ,2008 and 2013. Samples are the shares of companies that 40 days before and 40 days after was traded .then with MATLAB software code was writhed and simulation done. Finding show that HAM model can estimate investor’s behavior at big decline on Tehran stock exchange. Manuscript profile

Open Access Article

23 - Investigating factors affecting auditors' behavioral bias with a combined method
bakhtyar ashrafi Zohreh Hajiha REZA TEHRANI

10.30495/jik.2024.23245

The purpose of this research is to provide a model for the auditor's behavioral bias with a combined approach (foundation data and structural rates). The first stage of this research was conducted in the framework of a qualitative approach and by applying the foundation More

The purpose of this research is to provide a model for the auditor's behavioral bias with a combined approach (foundation data and structural rates). The first stage of this research was conducted in the framework of a qualitative approach and by applying the foundation data research method, and also in the second stage, the relationship between independent variables and dependent variables was measured with structural equations to check the effectiveness. The data collection tool was semi-structured interviews, and in order to collect information, interviews were conducted with 20 audit experts using the targeted sampling method. And information was collected through in-depth interviews. The time domain of this research is for the years 1399-1400. Data analysis was done in three stages of open, central and selective coding. The qualitative model of the research was designed and the structural equations confirmed the existence of relationships. Manuscript profile

Open Access Article

24 - Spreading Commercial Rumors in Cyberspace: Evidence From the Tehran Stock Exchange (Phenomenological Method)
javid hatam maryam Bokharaeian Khorasani Arash naderian Jamadori Gorganli Doji

In this study, employing a qualitative approach and phenomenography method and using in-depth interviews, the way of perception of the stock exchange activists in dealing with trade rumors was investigated. In this regard, 20 experts in the field were interviewed under More

In this study, employing a qualitative approach and phenomenography method and using in-depth interviews, the way of perception of the stock exchange activists in dealing with trade rumors was investigated. In this regard, 20 experts in the field were interviewed under the positions, including managers of regional stock exchanges, executives, analysts, experts, and consultants of the stock brokerage firms using the maximum variation sampling method. The content of interviews, roundtables, notes, and comments published in newspapers and online magazines on the stock market in recent years was used, which were generally similar to the interviewees' views on the subject matter of the research. Data analysis was performed based on Diekelmann method and 8 themes and 22 main themes were extracted. Based on the research findings, it can be concluded that the role of the government in the stock market and the emotional and mass-like behavior of the investors have exacerbated the trade rumors. Furthermore, some interviewees believe that cyberspace, especially telegram, have had recently a major impact on spreading the rumors. On the other hand, although Stock Exchange activists considered the Comprehensive Database of All Listed Companies (CODAL) network information as the most real and authentic information network of the organization because it passes through the audit filter, the recent political events and skepticism about the government have changed their attitude to some extent and made them less trusting to the CODAL network information. Manuscript profile

Open Access Article

25 - Predicting Network linkages of banking system distress based on operational risks and behavioral finance components
ahmad bidi Fraydoon Rahnamay Roodposhti Gholam Reza Gholami Jamkarani HAMIDREZA KORDLOUIE Mortaza Baky Hasuee

The present research is aimed at prediction of network linkages of banking system distress based on operational risks and behavioral finance approach. Methodology of the present research is of survey descriptive, practical from the purpose standpoint. Notably, in order More

The present research is aimed at prediction of network linkages of banking system distress based on operational risks and behavioral finance approach. Methodology of the present research is of survey descriptive, practical from the purpose standpoint. Notably, in order to reach this purpose, firstly, based on study and review of theoretical basics, research variables were introduced. Then, by making use of Krejcie and Morgan Table, 384 participants were selected, and upon distribution of questionnaire among the aforesaid, research data were collected. Furthermore, in order for analysis of data and estimation of research empirical models, the researcher used structural equation modeling (SEM) and Smart PLS software. Of note, findings of this research indicate that behavioral financial standpoints and operational risk have significant effects on prediction of banking network disorder. Furthermore, based on estimated beta coefficients, among behavioral financial elements, economic behavior, cognitive standpoint, judgment biases, heuristic behaviors, decision making biases and value and return of stocks have respectively the highest effect on banking disorder, and among operational risk elements, human resources risk, systemic risk, transaction risk, technology risk and fraudulent and deception risk have respectively the highest effect on banking disorder. Manuscript profile

Open Access Article

26 - The study of behavioral factors in the selection of optimal portfolio in
Maryam Saberi Roya darabi

The aim of this study was to "study behavioral factors in the selection of optimal portfolio Iran capital market" is. In order to achieve this goal, the dominant factors for mental accounting and loss aversion behavior and investment in stock and optimal portfolio selec More

The aim of this study was to "study behavioral factors in the selection of optimal portfolio Iran capital market" is. In order to achieve this goal, the dominant factors for mental accounting and loss aversion behavior and investment in stock and optimal portfolio selection with high efficiency compared to standard finance Using data from 106 firms listed in the Tehran Stock Exchange during the period of 5 years from 2011 to 2014 And regression analysis, variance analysis, was measured.The results showed that the expected return on portfolio behavioral model with an emphasis on mental accounting and loss aversion (as an indicator of behavioral factors) is greater than the expected return of the Standard Model and The hypothesis was accepted. Manuscript profile

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27 - Ranking of Behavioral Biases of Investors in the Face of political News and Rumors, emphasis on the era of Nuclear Talks
Hamed Tajmir Riyahi Mohammad Mehdi Dejdar

Tversky and Kahneman in the70 s in a series of articles achieved to the development of applications of psychological knowledge in finance and economy and  these research gradually became known as behavioral finance in the 90s as a field of financial matters. This s More

Tversky and Kahneman in the70 s in a series of articles achieved to the development of applications of psychological knowledge in finance and economy and  these research gradually became known as behavioral finance in the 90s as a field of financial matters. This school of thought with find inability to existing models, which are based on full rationality and lack of arbitrage turned to psychology and the science of decision making and by using a combination of  these science and finance gain a better understanding of investment activity in the financial markets. The development of this approach has led the scientists noticed a behavior in investors that are inconsistent with the classic financial theories. These characteristics known as behavioral biases that explaining the systematic errors in people judgment. In recent years the nuclear talks and the progress or lack of progress always caused reactions by players in capital market of Iran. The discussion has became more serious in the second half of 1392, ie since the beginning of negotiations in New York and all market indicators, including indices, volume and value of transactions was increasingly affected by this event. In this study, it was determined that what is the reaction of active players in the capital market according to the news and rumors about nuclear talks and which of behavioral biases exist in their transactions. Therefore, after making a list of behavioral biases in a questionnaire, the experts commented about those and results and were analyzed and ranked using TOPSIS. Manuscript profile

Open Access Article

28 - The day of the week effect on the stock market return in the stock exchange of Tehran
Farshad Heybati Mahboobeh Behfar

This thesis investigates the day of the week effect in TSE. The day of the week effect is calendar anomaly that has been widely studied and documented in finance literature. This anomaly indicates the repetitive trends or patterns in the time series behavior of stock ma More

This thesis investigates the day of the week effect in TSE. The day of the week effect is calendar anomaly that has been widely studied and documented in finance literature. This anomaly indicates the repetitive trends or patterns in the time series behavior of stock market. In this study various indexes of TSE for the period of 1385 - 1388 are examined to specify the probable pattern in trading days of TSE in term of return. Furthermore in this study the daily correlation between main variable of this study are examined. Various descriptive statistics for the sample are calculated and classified in this research and show obvious differences in the days of the week. The results of testing in term of compare the day of the week effect in TSE for return are accepted. This study finds that the highest return is occurred in Wednesday. The implicit results of this research are the negative risk premium for major indexes of TSE. Manuscript profile

Open Access Article

29 - Neuro finance, Perspective of Behavioral Finance
Shokrollah Khajavi Hassan Fattahi Nafchi

Using various sciences in solving problems have been developed significantly in recent years. In 1979 Kahneman and Tversky proposed a new school premises known as behavioural finance. In behavioural finance, by using the combination of psychology and finance, a perspect More

Using various sciences in solving problems have been developed significantly in recent years. In 1979 Kahneman and Tversky proposed a new school premises known as behavioural finance. In behavioural finance, by using the combination of psychology and finance, a perspective is presented which is able to explain financial decisions. The purpose of this research is the study of neuroﬁnance literature by using the psychological science. neuroﬁnance is a very young discipline that attempts to relate the brain processes to behavior. In this study by providing the answers for 5 questions in 7 sections, the process of emergence of neuroﬁnance, brain function in decision making, design, methodology and approach, the difference between behavioral and neuro finance, their applications, Criticisms in this area and the results of this study are investigated . The findings showed that human’s brain is similar to a black box. When an event occurs, the brain records every moment and therefore we can prevent mistakes by processing recorded features. By knowing this, decision makers can make optimum decisions. Manuscript profile

Open Access Article

30 - A comparative survey on behavioral factors on financial assets investment
Hamidreza Kordlouie Nader Dashti Razieh Seifollahi

Since 1980s by appearing behavioral finance literature, logically investment hypothesis and also efficient market ruined. The mentioned literature states that some biases cause on decision making while trading shares. This study investigates the effect of some behaviora More

Since 1980s by appearing behavioral finance literature, logically investment hypothesis and also efficient market ruined. The mentioned literature states that some biases cause on decision making while trading shares. This study investigates the effect of some behavioral elements on security investment. The aforesaid elements are Regret aversion, Disposition effect, Mental accounting, over confidence, Representativeness, Herding behavior, Conservatism and Endowment effect. In order to do the study, a sample of 385 investors in stock market was chosen and data was gathered through a questionnaire. Statistical tests examined the research hypotheses. Results show that all factors have a significant effect on investors'' decision-making exclude over-confidence. Due to different affection, the elements were rated. Rating indicates that the sequence of them is as follow:  1-Mental accounting, 2-Disposition effect, 3- Conservatism, 4- Herding behavior, 5- Representativeness, 6-Endowment effect, 7- Regret aversion. Manuscript profile

Open Access Article

31 - Factor Effect on Financial Analysts trust to Manager
Shadi Shahverdiani Mahtab Radfar

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 manag More

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. Manuscript profile

Open Access Article

32 - Analysis of the role of five factor model of personality on the The effect of financial information acquisition on behavior of investors in the Tehran Stock Exchange
Fateme Hijroudi Mohammad Doustar Mahmoud Moradi

The topic of behavior of investors in financial literature has a special position, because investors in the Stock Exchange may exhibit different behaviors, which these behaviors are influenced by several factors such as financial information. In this context, the aim of More

The topic of behavior of investors in financial literature has a special position, because investors in the Stock Exchange may exhibit different behaviors, which these behaviors are influenced by several factors such as financial information. In this context, the aim of this research is to analyze the role of financial information on the behavior of investors in the Tehran Stock Exchange. Since investors personality has an important role in behavior of investors, the role of moderator of investors personality characteristics are also examined in this study. The current research method is practical in terms of purpose that it has collected by using questionnaire and necessary survey data procedure. The statistical population of this research are all investors who have invested In the Tehran Stock Exchange in 2016. To collect the data, number of 384 questionnaires were distributed randomly among investors. In order to analyze the data used software smart pls2. The Results show that financial information acquisition have a significant positive important on behavior of investors in Tehran exchange. And among of personality characteristics (openness to experience, extraversion, conscientiousness, neuroticism and compatibility) the extraversion and compatibility variables have the role of moderator in this relationship. The openness to experience, conscientiousness and neuroticism variables have not significant moderator impact in this relationship.     Manuscript profile

Open Access Article

33 - The effect of prior performance of investors on stock price based on Prospect theory
Mohammad Kaffash Panjeshahi Farrokh Barzideh

In this article utility of investors contains utility from consumption and utility from fluctuations in their investments. To prove the effect of prior performance of investors on stock price first the utility function was defined based on Prospect theory and variables More

In this article utility of investors contains utility from consumption and utility from fluctuations in their investments. To prove the effect of prior performance of investors on stock price first the utility function was defined based on Prospect theory and variables relating to prior outcomes and loss aversion were factored into utility function and then price equations were defined. In the other form, variables relating to prior performance in utility function were removed and price equations were defined. Next, the P/D ratio and logarithmic growth of stock prices were simulated in both forms and compared against real market data. By utilizing ANOVA and K-Means in the 1381-1393 period, it became clear that the mean and standard deviation in the first form are closer to real market data than those of the second form, meaning that removing variables relating to investors' prior returns from the utility function resulted in weaker estimates, the effect of prior investment performance of investors was confirmed Manuscript profile

Open Access Article

34 - Investor sentiment under representativeness heuristic: The case of Tehran Stock Exchange
Mehdi Rezayati Kazem Chavoshi Mohsen Sohrabi araghi

Too many researches, in spite of standard finance show that investors are not completely rational and investor sentiment plays a key role in prediction of their behavior. Behavioral finance claims that agents, under the psychological phenomena's, deviate from rational b More

Too many researches, in spite of standard finance show that investors are not completely rational and investor sentiment plays a key role in prediction of their behavior. Behavioral finance claims that agents, under the psychological phenomena's, deviate from rational behavior. In this research we have investigated the effects of unexpected earnings on investor sentiment, under the representativeness heuristics phenomena. Investor sentiment is measured by ARMS index and the research methodology is based on Granger causality test and also event study. Data's are market and accounting data of Tehran stock exchange listed companies, between the years 2001 to 2013. Results indicate that investor sentiment is predictable by past unexpected earning's. Manuscript profile

Open Access Article

35 - The Impact of Investor’s Perception of Risk on Portfolio Management (Case Study: Active Investor’s Mashhad Stock brokers)
Ahmad Nategh Golestan Elahe Damghani Ahmad Sabahi

Investor’s decision making is a subject of considerable debates in behavioral finance. Behavioral finance refers to how people make decisions under uncertainty conditions. This paper is devoted to The impact of investor’s Perception of Risk on Portfolio Mana More

Investor’s decision making is a subject of considerable debates in behavioral finance. Behavioral finance refers to how people make decisions under uncertainty conditions. This paper is devoted to The impact of investor’s Perception of Risk on Portfolio Management. It is an applied study of descriptive-surveying type used to gather the required data through questionnaires. A simple sampling was used and the final sample included 104 investors. Investors were questioned about 24 possibly influencing factors of investor’s reception of risk and 21 influencing factors Portfolio Management in the form of a Likert Scale. The data from questionnaires with SPSS and Smart PLS software using structural equation modeling (path analysis) were analyzed. Results of the study indicated that risk perceived risk factors directly and affecting the perceived risk indirectly is effective on the portfolio management.     Manuscript profile

Open Access Article

36 - Role of Behavioral Finance In Understanding Individual Investor's Behavior (A Review of Empirical Evidences from Tehran Stock Exchange)
Keyvan Dadras Abbas Toloie Reza Radfar

In paradigm of behavioral finance, the prevalent Assumption of viewing human being as rational entity who is always satisfied in optimizing his/her benefits is questionable. The advocates of Behavioral finance knowledge strongly believe that awareness of psycho-cognitiv More

In paradigm of behavioral finance, the prevalent Assumption of viewing human being as rational entity who is always satisfied in optimizing his/her benefits is questionable. The advocates of Behavioral finance knowledge strongly believe that awareness of psycho-cognitive" tendencies in investment realm is absolutely essential and it requires serious improvement in terms of expanding the scope of studies. However academicians and professionals who are advocates of classic financial school do not believe in examining behavioral aspects of human and its impact on financial decisions as an independent field of studies, yet both quantitative and qualitative advancement of experimental studies within this field indicates the importance of research on behaviors in financial markets. The aim of this study is to identify influential factors on individual investor's decision making and also identifying behavioral biases,through a comprehensive review of conducted studies in Iran and comparing it with the result of studies from other countries. The finding of this study shows that domestic and foreign studies have identified similar effective factors such as financial ratios, recommendations,behavioral biases and etc. Also the effect of demographic factors on investors' behavior has been not studied in Tehran stock exchange so far.   Manuscript profile

Open Access Article

37 - Calendar Effects in the Tehran Stock Exchange Approach to Stochastic Dominance Criteria
Ali Shayegan Mehr Sima Shayegan Mehr

The aim of this study is to investigate and identify the effects of calendar weekdays and months of the year on the Tehran Stock Exchange. To attain this goal use the Tehran Stock Exchange index daily returns in the period beginning in 1386 until the end of 1392 and we More

The aim of this study is to investigate and identify the effects of calendar weekdays and months of the year on the Tehran Stock Exchange. To attain this goal use the Tehran Stock Exchange index daily returns in the period beginning in 1386 until the end of 1392 and we have stochastic dominance criteria for the analysis that due to the non-parametric orientation has certain charm. The results indicated the existence of calendar effects in the Tehran Stock Exchange. On weekdays effects in the Tehran Stock Exchange, in terms of return Saturday dominance on other days and Sunday dominated by other days. The effects of months of the year, in terms of return April dominance on other months and November dominated by other months. Also due to calendar effects identified in the Tehran Stock Exchange, the efficient market hypothesis is rejected in the stock even at low levels. Manuscript profile

Open Access Article

38 - Assessment of the behavioral determinants of individual investors in Tehran Stock Exchange based on structural equation modeling
mohammad hasan Ebrahimi Sarve Olia Jafar Babajani Payam Hanafizadeh Bahram Ebadpour

Investigation and behavioral finance analysis of investors and market participants nascent field of financial management is one of the topics. Integration can be considered classical economics and sciences of psychology and decision-making. While taking note of the rece More

Investigation and behavioral finance analysis of investors and market participants nascent field of financial management is one of the topics. Integration can be considered classical economics and sciences of psychology and decision-making. While taking note of the recent developments on the stock exchange, have all the internal and external factors considered in the nuances and micro-sighted, because this process of thought, conscience and mentally very wide variety of people (investors) that has this is a subjective understanding is important for transparency and a better understanding of the market. The importance of this issue more clear that time based on the participants ' stock, half of the stock market trading volume by investors is done and the number of fault component of this field over ninety percent of the active population of the stock market. In fact, this research has scientific literature in the country try to examine the factors influencing the behavior of investors to expand component and thereby a transparent decision making in preparation for the Tehran stock exchange offer. This study is a comprehensive and in-depth study after scientific literature, the primary conceptual framework to the essence of its experts to the Delphi technique is deposited after the third stage of theoretical saturation in Delphi, consensus and convergence is collected pursuant to and answers become the final framework of the study. This study proceeded to survey the essence of method of the Tehran Stock Exchange component of investors about the factors influencing the behavior of the righteous, and structural equation modeling method to finally proceed to the determination and ranking factors and the relationship between determinants of behavior factors on the Tehran Stock Exchange component of the investors. Manuscript profile

Open Access Article

39 - Informational uncertainty a criterion to explain stock returns (Behavioral Approach)
Fraydoon Rahnamay Roodposhti Hashem Nikoomaram Mohammad Hesam Jahanmiri

The aim of this study is to investigate the informational uncertainty as a criterion to explain stock returns by a behavioral approach to the companies listed on the Tehran Stock Exchange. The informational uncertainty criteria include the book value to market value ( More

The aim of this study is to investigate the informational uncertainty as a criterion to explain stock returns by a behavioral approach to the companies listed on the Tehran Stock Exchange. The informational uncertainty criteria include the book value to market value (BV / MV), company age (Age), the size of the entity (MV), lowest price to the highest price of the stock ratio (LHR), the standard deviation of stock returns (STD) and the standard deviation of operating cash flow (CFVOLA). To investigate this issue a main hypothesis and four sub-hypotheses developed for this purpose and data of 99 companies of Tehran Stock Exchange was analyzed for the period 2007 to 2014. Results show that for all the variables except for STD (standard deviation of stock returns), by increasing the degree of informational uncertainty, stock returns trend increases for winning portfolios.   Manuscript profile

Open Access Article

40 - Agent-based modeling in financial markets
Hamidreza Vakili fard Mehdi Khoshnood Heidar Foroughnejad Mohamad Osoolian

After stabilization the two main paradigms of classical and behavioral finance in the second half of the twentieth century some problems s arose about the validity of researches such as Complexity of the behavior of investors , Retrospective data and limiting rules on t More

After stabilization the two main paradigms of classical and behavioral finance in the second half of the twentieth century some problems s arose about the validity of researches such as Complexity of the behavior of investors , Retrospective data and limiting rules on the confidentiality of personal accounts and financial information to investors. This problem creates a new approach in the field of Financial Studies that is Agent – based modeling approach which is based on the concepts of artificial intelligence, simulation, and creating artificial financial market.  In This paper will discuss the agent-based approach and its application in financial markets, most software for the creation of artificial financial markets and the use of agent-based models in the classical and behavioral finance. Based on the results of this research agent-based modeling approach beside of classical and behavioral finance paradigm can increase the accuracy and efficiency of the financial markets researches. Manuscript profile

Open Access Article

41 - Research in Effect of Lunar Calendar Events on Stock Returns and Daily Trading Volume in Tehran Stock Exchange
Shadi Shahverdiani Ahmad Goudarzi Soheyla Vahdat Zirak

The analysis of the effects of calendar month as a branch of behavioral finance considers the efficiency and the amounts of transactions in some special times of the year, and seeks to know whether there is a notable difference between the efficiency and number of trans More

The analysis of the effects of calendar month as a branch of behavioral finance considers the efficiency and the amounts of transactions in some special times of the year, and seeks to know whether there is a notable difference between the efficiency and number of transactions before these specified days with the out-put and the amounts of dealings on other days. (according to what have been observed at world markets) This research considers the effects of the calendar year Hegira on the out-put of stocks and the number of transactions at the stock market of Tehran during the years 1383-1390. The method of performing this research contains the analysis  through-out the method of panel data. The conclusion of this research proves that the effect of the Hegira months: Ramadan and Moharram on the stock market of Tehran is approved. Such an approvement that the efficiency is elevated during these two mentioned months. But no significant difference has been noticed due to the amounts of transactions during the mentioned months. Manuscript profile

Open Access Article

42 - Relation between “individual investors’ mental evaluations from product and brand” and “their preference to investing in stock”
Mostafa Ghazizadeh Mahmoud Esfandiari Mohammad Ebrahim Raei Ezabadi Hossein Reisi Ghorbanabadi

The aim of this research is to investigate the relationship between “individual investors’ mental evaluations from product and brand” and “their preference to investing in stock”. The population of this research is individual investors that More

The aim of this research is to investigate the relationship between “individual investors’ mental evaluations from product and brand” and “their preference to investing in stock”. The population of this research is individual investors that acted in Tehran Security Exchange from 1389/3/31 to 1391/3/31.  The sample is 384 individual investors. For collecting data, we use questionnaire and for analyzing data, we use SPSS and PLS software. The results show that there is a significant relation between “individual investors’ mental evaluations from product and brand” and “their preference to investing in stock”. Manuscript profile

Open Access Article

43 - Analysis of Behavioral Reactions in Tehran Stock Exchange
Hamidreza Vakilifard Ali Saeedi Akbar Eftekhari Aliabadi

Through Behavioral finance, researchers faced with many exceptions in financial markets and concluded that psychological phenomena play an important role to determine financial markets behavior. In this research, different types of investors’ behavior have been re More

Through Behavioral finance, researchers faced with many exceptions in financial markets and concluded that psychological phenomena play an important role to determine financial markets behavior. In this research, different types of investors’ behavior have been recognized in different time scales. A general model for Tehran Stock Exchange has been designed by using the time series data, from 2006 to 2010. Wavelet analysis has been used as a statistical and analytical tool to explain trait and multi resolution. Research results show that investors have different reaction after good or bad news,their reaction in long term scale is more distinct than short term. Return of investment derived by price is different in various periods after good or bad news; it has the same trade as the direction of EPS adjustment in short term. But this trend isn’t recognized in long term. Manuscript profile

Open Access Article

44 - The effect of financial literacy on Machiavellian personality of Tehran exchange market investors
Karim Ghalmegh Ahmad Yaghoobnezhad Mirfeiz Fallah Shams

Financial literacy and behavioral biases (Machiavellian personality) are critical factors affecting the financial decisions and behaviors of investors. We survey 285 individual stock investors to measure their financial literacy, to examine their behavioral biases and t More

Financial literacy and behavioral biases (Machiavellian personality) are critical factors affecting the financial decisions and behaviors of investors. We survey 285 individual stock investors to measure their financial literacy, to examine their behavioral biases and to investigate the relationship between financial literacy and behavioral biases. This study was conducted in 20015 and 2016 years in Tehran stock exchange market, brokers and investment companies in Iran. Standard international questionnaire (after localization) was distributed among the investors and the answers were gathered, then variables were measured using multivariate regression in SPSS. In spite of research literature in the local context which offers a model for measuring financial literacy, this study specifically tends to find out the relationship between financial literacy and the behavioral biases among the Investors Results suggest that there is negative significant relationship between the financial literacy and the Machiavellian personality in Tehran Stock exchange market Investors. Manuscript profile

Open Access Article

45 - Psychological entropy theory in behavioral finance
Mohammad Namazi Sholeh Mansoory

Despite the new finance theory and efficient market assumption in capital markets, some empirical documents and market anomiles causes a new theory called behavioral finance. This theory describes the psychological process effects in financial decision makings and the w More

Despite the new finance theory and efficient market assumption in capital markets, some empirical documents and market anomiles causes a new theory called behavioral finance. This theory describes the psychological process effects in financial decision makings and the way in which one would determine the financial market behavior. This approach which is the result of the Psychology and finance combination have led to more accurate and contemporary aspects of human behavior in financial markets. This research is empirical and descriptive in this paper after the introduction of the development of the behavioral finance, the entropy theory and physiological patterns of human decisions are illustrated. It is concluded that entropy theory can be implemented to understand and predetermine the investors behavior in financial markets. There are several important personal entropy factors that affect the behavioral finance: these are: Conservation principle, plan or agency, collective behavior, over confidence loss- aversion and risks taking. Hence, the financial advisors can suggest portfolios which are proportionate to investors objectives and attitudes. It is expected that behavioral models development and observed phenomena explanation would lead to market and the optional use of the information in the markets. Manuscript profile

Open Access Article

46 - Comparing the Behavioral Model of Stock Images with Traditional Models in estimating Stock values of Companies Listed on Tehran Stock Exchange
Gholamreza Askarzadeh Maryam Khaliliaraghi Hashem Nikoomaram F. RahnamayeRoodposhti

Investors' objective of investing in stocks is gaining profit and reasonable return .Using behavioral model of stock image and traditional models (free cash flow of equity, discounted dividends and residual income), this research tries to present a framework for estimat More

Investors' objective of investing in stocks is gaining profit and reasonable return .Using behavioral model of stock image and traditional models (free cash flow of equity, discounted dividends and residual income), this research tries to present a framework for estimating stock values of companies and assess the performance of each of them in stock valuation of companies. In this regard, 95 manufacturing and industrial companies listed on the Tehran Stock Exchange were selected. The study period was from 2009 to 2013.  The models performance was compared based on explanatory power and accuracy using panel data technique and prediction errors respectively. The results of research show that the behavioral model of stock image is higher explanatory power and accuracy compared to traditional models in estimating of stock values. The behavioral model can explain the role of behavioral factors in stock pricing and helpful for stockholders in the active portfolio management.   Manuscript profile

Open Access Article

47 - Influence of Behavioral finance factors on the decisions of individual investors
Davoud Gorjizadeh M. Hamed Khanmohammadi

Behavioral finance asserts that the attitude of investors to the capital market is a function of investment psychology, his ideas and his position in relation to risk. Research shows that many micro and macro factors that are measurable and non-measurable, affect the be More

Behavioral finance asserts that the attitude of investors to the capital market is a function of investment psychology, his ideas and his position in relation to risk. Research shows that many micro and macro factors that are measurable and non-measurable, affect the behavior of investors. According to importance of this issue, this study examines the factors influencing investment that pays investors to invest in the capital market. In line with this study, we examined the characteristics of investors in the Tehran Stock Exchange. Data collected through questionnaires. Using multiple regression analysis is the relationship between the variables is measured. The Research outcomes show that, Current yield, saving, Income & Record attendance at Exchange, Have the highest impact on the volume of people investing in the stock exchange. Manuscript profile

Open Access Article

48 - Financial Astrology in Stock Market Analysis
Mohsen Ghasemian Feraydoon Rahnamay Roodposhti

Financial Astrology as a tool in field of Technical Analysis is used in stock market analysis for many years. Although it's an old science and a known way for market analysts but in Iran it's unknown for traders and academic researchers. A doubt in point of view is nece More

Financial Astrology as a tool in field of Technical Analysis is used in stock market analysis for many years. Although it's an old science and a known way for market analysts but in Iran it's unknown for traders and academic researchers. A doubt in point of view is necessary for investigators to test the claims but mysterious tools and unknown references would make it slow in science development and use it by market technicians. In this research some references in financial astrology including books, articles and related soft ware would be introduced to know the position of this field in financial markets. Results of this research show the usage of Financial Astrology in Capital Market Analysis and would help us to have a better realization of trading cycles and finally can help in portfolio stock selection. Manuscript profile

Open Access Article

49 - Behavioral Modeling of Angel Investors’ Investment Decision Makings
Yahya Hassas Yeganeh Adel Afkhami

Angel investors are the most important supportive groups for innovations and new ideas in developed countries. Therefore, studding their investment behavior is really important. This research aims to study angel investment behaviors in terms of behavioral finance. Using More

Angel investors are the most important supportive groups for innovations and new ideas in developed countries. Therefore, studding their investment behavior is really important. This research aims to study angel investment behaviors in terms of behavioral finance. Using pilot and Delphi study, 16 variables as behavioral finance indicators were determined, which then turned to 31 observable variables which they were basis for the research questionnaire. 183 angels’ questionnaires were collected as our sample. Our data were analyzed by factor analysis and then structural equation modeling. Seven latent variables were realized as affecting behavioral finance factors by factor analysis, which their relationship next with one decision making factor were analyzed by structural equation modeling. Finally, it can be stated that factors respectively including: Hope, Retrospective, Overconfidence, simplistic and Risk have a positive relationship and factors including: Mental Accounting and Self Attribution have a negative relationship with angel investors’ decision makings.   Manuscript profile

Open Access Article

50 - Investigating the effect of culture on the Investor's financial bias according to the role of attitude toward money
Maryam Ghane Zahra Sadeqi-Arani Esmail Mazroui Nasrabadi

10.30486/fbra.2023.1976778.1173

Bias is an important issue in behavioral finance and it reduces market efficiency. Previous studies have been mainly conducted in order to investigate the presence or absence of types of bias among market investors, but the present research has investigated the relation More

Bias is an important issue in behavioral finance and it reduces market efficiency. Previous studies have been mainly conducted in order to investigate the presence or absence of types of bias among market investors, but the present research has investigated the relationship between the investor's individual culture, monetary attitude and financial biases. The statistical population of the study is the investors of Tehran Stock Exchange and the sample size is 384. A questionnaire was used to collect information and the obtained data were analyzed with regression analysis methods. 6 groups of hypotheses were examined. The results showed that power distance has a significant effect on conservatism and availability. Effort/ability has a (full) mediating role between the long-term orientation and conservatism and between the extremism and conservatism. Power distance with money obsession and gaining power ambiguity aversion with inadequacy, long-term orientation with money retention and effort/ability, patriarchy with money retention and inadequacy, has a direct relationship. Individualism has an inverse relationship with inadequacy and a direct relationship with effort/ability, effort/ability has a direct relationship with conservatism, and power distance has a direct relationship with conservatism and availability. There is a significant difference in regret aversion between women and men, in loss aversion between age groups, in the illusion of control between different employment situations, and in loss aversion between different amounts of monthly allocation to buy stocks. According to the findings, it is suggested to take action in the field of shareholder training and providing financial advice according to personality type. Manuscript profile

Open Access Article

51 - Investigating the effect of emotional intelligence on financial decision making with the mediating role of investors' mood in the stock market
abas samadi roholah sohrabi elham rezaei negin maghsod

10.30486/fbra.2022.1956111.1102

Investors face problems in making financial decisions. People who have no control over their emotions make irrational decisions. On the other hand, daily moods have a great impact on financial decisions. In this study, the effect of psychological variables of emotional More

Investors face problems in making financial decisions. People who have no control over their emotions make irrational decisions. On the other hand, daily moods have a great impact on financial decisions. In this study, the effect of psychological variables of emotional intelligence mediated by mood on investors' decision making has been investigated. The research method is applied in terms of purpose and descriptive and survey in terms of nature. The statistical population is investors in the city of Hamedan. The data collection tool in this study is based on a questionnaire. The Baron Emotional Intelligence Questionnaire with 90 scores, the Panas Questionnaire with 20 scores were used to measure the mood variable and the Bruce and Scott Decision Making Scale with 25 scales. In order to confirm the validity of this questionnaire, in addition to confirming the face and content validity, construct validity was used. Data analysis was performed by linear regression tests. It was concluded that there is a relationship between emotional intelligence and financial decision making. One of the minor results is the lack of relationship between emotional intelligence and intuitive decision making and the negative relationship between emotional intelligence and rational decision making but emotional intelligence is directly related to three styles of dependence, instant and avoidance . But the other result is that positive mood such as enthusiastic, active, alert is not related to intuitive decision making and is positively related to rational, instantaneous and avoidant decision-making style and negatively related to dependent decision-making style. Manuscript profile

Open Access Article

52 - The Impact of Behavioral Financial Characteristics on Investment Decisions by Emphasizing the Mediating Role of Individual and General Characteristics of Investors in Tehran Stock Exchange
Azadeh Fooladi Sedigheh Tootian Esfahani Hossein Eslami Mofid Abadi

10.30486/fbra.2022.1950412.1068

The main purpose of this study was to investigate the effect of financial and behavioral characteristics on investment decisions by considering the mediating role of individual and general characteristics of investors in the Tehran Stock Exchange. The statistical popula More

The main purpose of this study was to investigate the effect of financial and behavioral characteristics on investment decisions by considering the mediating role of individual and general characteristics of investors in the Tehran Stock Exchange. The statistical population of this study includes active investors in Tehran Stock Exchange. The sample size obtained using the formula is 384 Cochrane. In order to measure the research variables, a questionnaire with 43 items and the dimensions of investors' behavioral biases, the decision to invest in stock equations, individual and general characteristics of investors have been used. The present study was descriptive-survey and applied in terms of purpose.In order to test and test the research hypotheses, descriptive and inferential statistical techniques and structural equation modeling methods have been used.Findings of this research showed that investors' behavioral biases have a significant effect on the decision to invest in stocks by mediating the individual and general characteristics of investors. Judgment biases have a significant effect on the decision of investors in stocks by mediating the individual and general characteristics of investors. Also, preferential bias has a significant effect on the decision to invest in stocks with the mediating role of individual and general characteristics of investors. However, the behavioral biases of investors do not have a significant effect on the decision to invest in stocks. But the individual and general characteristics of investors have a significant effect on the decision to invest in stocks. Manuscript profile

Open Access Article

53 - Investigating Time Varying Herd Behavior in Tehran Stock Exchange: Generalized Autoregressive Score Approach
Mohammad Ebrahim Samavi Hashem Nikoomaram Mahdi Madanchi Zaj Ahmad Yaghobnezhad

10.30486/fbra.2022.1953468.1084

Herd behavior is one of the most important behavioral biases in financial markets and is one of the determinants of financial crises. Given that herd behavior directly affects price, presenting a model based solely on past prices, with good predictability, indicates the More

Herd behavior is one of the most important behavioral biases in financial markets and is one of the determinants of financial crises. Given that herd behavior directly affects price, presenting a model based solely on past prices, with good predictability, indicates the existence of market herd behavior. This article aims to investigate the existence of herd behavior in Tehran Stock Exchange and presents a new nonlinear variable time model called Generalized Autoregressive Score (GAS) and has been compared with traditional GARCH and AR nonlinear models. in order to predict the distribution of return of the total index of the stock exchange during the period 2010 to 2020. The results of modeling for the asset by the new GAS model are compared with the results of the GARCH and AR models and their performance is tested for inside and outside the sample. ample in the internal and external tests show that the new GAS model is more accurate than the traditional GARCH and AR models in predicting the daily return distribution of the total index of the Tehran Stock Exchange and also the presence of herd behavior in Iran's capital market has been approved. Manuscript profile

Open Access Article

54 - Investigating herd behavior in the digital currency market
gholamreza askarzadeh amin roohi

10.30486/fbra.2023.1980715.1184

The purpose of this research is to investigate herd behavior in the digital currency market. Considering the important role of herd behavior in the digital currency market and its effect on the price of cryptocurrencies, this study focuses on mass behavior in digital cu More

The purpose of this research is to investigate herd behavior in the digital currency market. Considering the important role of herd behavior in the digital currency market and its effect on the price of cryptocurrencies, this study focuses on mass behavior in digital currency markets, because this herd behavior causes the direction of the market to change, so for the trader and investors, it is important for what reasons this herd behavior occurs. Bitcoin has been the largest cryptocurrency invested over the past decade, and mass phenomena in cryptocurrency markets are largely attributed to its price volatility. The data analysis method is linear regression, and the statistical population is currently the top 500 cryptocurrencies based on the project, and in this research, the top 200 cryptocurrencies based on their market value in the digital currency market, which have the greatest impact. on the market and cause herd behavior in the digital currency market has been selected in the period of 2019 to 2022. The method of collecting information has been done using the library method, by checking the Coin Market Cap website and Latin articles. Cross-sectional absolute standard deviation (CSAD) has been used to measure and test hypotheses. The results of the research show that the intensity of herd behavior in the bull market is higher than in the bear market, and there is also herd behavior in the cryptocurrency bull market. Manuscript profile

Open Access Article

55 - The investigation of loss aversion in investment companies in Tehran stock exchange
Zahra Madahi Roya Derakhshani

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Open Access Article

56 - Behavioral Finance Models and Behavioral Biases in Stock Price Forecasting
Nader Rezaei Zahra Elmi

10.22034/amfa.2019.576127.1118

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Open Access Article

57 - A Corporate Perspective on Effect of Asymmetric Verifiability on Investors’ Expectation Differences
Erdal Karapinar Said Mosai Faeqeh Taherinejad

10.22034/amfa.2019.1869165.1227

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Open Access Article

58 - Stock Price Momentum Modeling: A Grounded Theory Approach
Mehdi Elhaei Sahar Rezvan Hejazi Allah karam Salehi Hossein Moltafet

10.22034/amfa.2020.1882300.1324

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Open Access Article

59 - Past-oriented behavioral bias: A study on S&P & TEPIX index-es
Mohsen Mehrara Saeid Tajdini Jamal Maghsoudi Majid Lotfi Ghahroud Niloufar Ebrahimiyan Farzad Jafari

10.22034/amfa.2021.1930165.1591

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Open Access Article

60 - Developing the Stock Pricing Model based on Bounded Rationality Theory
Mohammad Noroozi Daruosh Foroghi farzad Karimi

10.22034/amfa.2022.1940035.1632

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Open Access Article

61 - A Model of Investor Sentiment Based on Grounded Theory Approach
Akram Davoudi Ali Khozein Arash Naderian

10.22034/amfa.2022.1948257.1668

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Open Access Article

62 - Investigating and Testing the Herding Behaviour of Investors in Stock Exchange
Rahele Yousefi Abolfazl Shahrabadi

Herding behavior is considered as one of the behavioral approaches between investors and an important element in financial markets. Sometimes, this element causes agitation in circumstances where information is spread. A crucial problem in this regard is distinguishing More

Herding behavior is considered as one of the behavioral approaches between investors and an important element in financial markets. Sometimes, this element causes agitation in circumstances where information is spread. A crucial problem in this regard is distinguishing between artificial and thoughtful herds, because thoughtful herding may be inefficient and it may eventually result in fluctuation in markets. In this research, we examined and tested the herding behavior between investors in Tehran Security Exchange using Salmon and Huang’s model. In order to calculate the required variables of model, the moving window technique was utilized and the window size was set as 24 months. In other words, by applying the information of the last 24 months, Excel Software calculated monthly market yields as well as monthly yield of each share and the required variables. After substituting the obtained values for the variables in standardized formula HS, we calculated and analyzed the herding amounts for each months of 1382-86 interval .The findings depicted a clear herding pattern for the time interval under study and hence, confirmed the corresponding theory. Manuscript profile

Open Access Article

63 - Effect of financial literacy on the relationship between self-control and financial behavior and financial well-beingof individual investors in Tehran Stock Exchange
manizheh mohammadi arash naderian Majid Ashrafi Jomadoordi Gorganli davaji

Capital markets have an important role in the economy, so their proper performance will be a key factor in ensuring economic growth, so if capital markets are efficient, economic development will be realized. On the other hand, since currently the country's capital mark More

Capital markets have an important role in the economy, so their proper performance will be a key factor in ensuring economic growth, so if capital markets are efficient, economic development will be realized. On the other hand, since currently the country's capital market has been welcomed by investors, it is undoubtedly very important to examine the behavior patterns of investors. Therefore, in this study, the effect of self-control behavioral bias on financial behavior and financial well-being was investigated through the moderating role of investors' financial literacy. For this purpose, the statistical population included individual investors, traders and brokers of Tehran Stock Exchange who were directly active in the market. Also, the statistical sample was determined using Cochran's formula of 421 people. To analyze the data, the PLS structural equation model was used. The results showed that the self-control variable has a significant positive effect on financial behavior, financial well-being and In the sense that with the increase of self-control of stock market investors, their financial behavior and financial well-being will increase. Also, by introducing the variable of financial literacy as a moderating variable, the intensity of the relationship between self-control and behavior and financial well-being increases. In the sense that the financial literacy of individual stock market investors increases the positive relationship between self-control and their behavior and financial well-being. Manuscript profile

Open Access Article

64 - The effect of CEO narcissism on stock returns
Shahnaz Mashayekh mahmood Hasanzade Kuchou Raheleh Mirzaei Beirami Malihe Habibzade

One of the basic criteria for making decisions in the stock market is stock returns. Stock returns alone have informational content and are used by most actual and potential investors in financial analysis and forecasting. Currently, investors can predict stock returns More

One of the basic criteria for making decisions in the stock market is stock returns. Stock returns alone have informational content and are used by most actual and potential investors in financial analysis and forecasting. Currently, investors can predict stock returns to some extent by creating a link between stock returns and other financial and non-financial information. Accordingly, the purpose of this research is to investigate the effect of CEO narcissism on stock returns. For this purpose, the data related to the companies accepted in the Tehran Stock Exchange for the ten-year period between 1391 and 1400 were extracted for 105 companies and the statistical software Eviews 8 was used. The current research is an applied research from the aspect of the result. After the statistical analysis, the results of the research hypotheses indicate that CEO narcissism has a positive and significant effect on stock returns. This shows that the behavior of narcissistic managers leads to providing favorable statements to owners and shareholders in order to increase rewards and also gain more satisfaction. Manuscript profile

Open Access Article

65 - Investigating the Impact of Audit Quality on the Relationship between Investors’ Emotional Attitudes and Earnings Response Coefficient in Companies Listed in Tehran Stock Exchange
Roya Darabi Zohrehsadat Mirtaheri

The purpose of this study was to investigate the effect of audit quality on the relationship between investors' emotional attitudes and earnings response coefficient in firms admitted to the Tehran Stock Exchange. The spatial domain of this research was the companies li More

The purpose of this study was to investigate the effect of audit quality on the relationship between investors' emotional attitudes and earnings response coefficient in firms admitted to the Tehran Stock Exchange. The spatial domain of this research was the companies listed in the Tehran Stock Exchange and the time zone is the period from 2013 to 2016. In this study, audit quality was considered as a moderating variable and investors’ emotional tendencies as an independent variable and earnings response coefficient as a dependent variable. Based on the screening method, 107 companies listed in Tehran Stock Exchange were selected as the statistical sample. In the present study, the research method is descriptive-causal and since it can be useful in the process of using information, it is therefore a kind of applied research. Data analysis was also performed using Eviews software. The results showed that there is a significant relationship between investors’ emotional tendencies and earnings response coefficient. The quality of auditing affects the relationship between investors’ emotional attitudes and earnings response coefficient. Manuscript profile

Open Access Article

66 - The Characteristics of Stocks on Herding Behavior in Tehran Stock Exchange Corporations
Jalil Khodaparast Shirazi Mohammad Sayrani Somayeh Abolfathi

Policymakers often express concern that behavioral finance such as herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an empirical research on herding behavior of investors whit employin More

Policymakers often express concern that behavioral finance such as herding by financial market participants destabilizes markets and increases the fragility of the financial system. This paper provides an empirical research on herding behavior of investors whit employing technique of Lakonishok, Shleifer, and Vishny, 1992, (LSV) herding measure by using a data-set consisting of all their daily transactions of 59 corporations in Tehran stock exchange corporations and during 24 months ( Dec.2007 until Dec.2009), and explores the factors that can explain such behavior. In this study demonstrates that herding is affected by four features specific to the stocks, such as their size, systematic risk, idiosyncratic risk, and P/E. Size, systematic risk and idiosyncratic risk tend to positively affect herding but this effect is significantly higher for size. This context also reveals that P/E influences herding negatively. In general most of the results are consistent with the theory that herding is information based, and also when market conditions are favorable. Manuscript profile

Open Access Article

67 - Impact of the Investor's Mood State on Expected Return on Investment
mostafa heidari haratemeh mohsen ameri shahrabi

Several studies have examined the relationship between investor's mood and economic conditions . This paper examines the effect of investor sentiment on expected return on capital by considering changes in Lucas's model, considering equity and equity market prices in th More

Several studies have examined the relationship between investor's mood and economic conditions . This paper examines the effect of investor sentiment on expected return on capital by considering changes in Lucas's model, considering equity and equity market prices in the context of pricing models and in the context of minor changes. How the slight changes in the mood factors (time preference and risk aversion affect stock prices) are determined and calculated. The results show that: a) The expected rate of return on stocks is inversely related to the investor's mood state; b) When the investor has a good mood state, the effect of the mood state on the expected return on capital increases; c ) The variables of the mood state of affairs are more influential on the investment markets than on the securities market; d) The investor's mood state is an essential factor in the stock return; e) Integrating the investor's mood state with asset pricing patterns can help interpret existing evidence of growing maladies related to investor behavior. Manuscript profile

Open Access Article

68 - The Development and Assessment of Stock Pricing Model Based on the Anchoring and Adjustment Theory
Mohammad Noroozi daruosh foroughi farzad karimi

The Financial market analysis is an important issue that influences investors' decisions. This paper developed the stock pricing model by comparing the predicted stock price based on the anchoring and adjustment theory and the real stock price through collecting and ana More

The Financial market analysis is an important issue that influences investors' decisions. This paper developed the stock pricing model by comparing the predicted stock price based on the anchoring and adjustment theory and the real stock price through collecting and analyzing the initial information and data of 122 companies listed on the Tehran Stock Exchange during the period 2011 to 2019. The results of this study show the effectiveness of the anchoring and adjustment theory based on the separation of stock return components and measuring the irrationality coefficient and emotional reactions of investors' decisions in stock prices. Accordingly, the limitations of investors 'ability to process information seem to affect the level of use of reasoning and rationality in decision-making and the effect of bounded rationality through the irrationality and limited attention on stock pricing. Therefore, it is expected that knowledge about the process of bounded rationality based on the rational bounded of investors and the behavioral biases resulting from the irrational part of their thinking, will provide a good explanation for the process of changes in financial markets. This can provide both profit opportunities and costs in investment management so that it can be used in modeling, analysis and investmentstrategies. Manuscript profile

Open Access Article

69 - Provide a model for identifying the factors affecting the instabilityof the Tehran Stock Exchange based on the Grounded theory
hossein hashemnezhad Khadijeh Ebrahimi Mehdi Safari Graili

AbstractInvestigating the instability of financial markets, including the stock exchange, is considered one of the most important topics in the literature of international finance. Therefore, the main goal of this research is to identify the main and sub-components affe More

AbstractInvestigating the instability of financial markets, including the stock exchange, is considered one of the most important topics in the literature of international finance. Therefore, the main goal of this research is to identify the main and sub-components affecting the volatility of Tehran Stock Exchange and to present the relevant conceptual model based on the foundation's data analysis. The methodology of this research is part of exploratory research in terms of its goal and its implementation method is qualitative. The statistical population of this research includes financial experts, who were selected by using the snowball sampling method in the number of 14 people. Then by conducting interviews, collecting the necessary data and after coding, the research model based on the theoretical framework includes 12 sub-components in the form of 4 main components: 1) Characteristics of Tehran Stock Exchange 2) Economic factors 3) Political factors 4) The influence of the government was designed. And solutions related to the management of the above factors are also provided. Manuscript profile

Open Access Article

70 - The optimization of Investment Beliefs in Tehran Stock Exchange Break Points Based on Heterogeneous Agent Models Framework and Agent Based Modelling with Genetic Algorithm
mehdi khoshnood Fraydoun Rahnamay Roodposhti Hashem Nikoomaram

This paper survey beliefs of investor on Tehran stock exchange at three break point date (BPD). at first  three BPD with several criterion : average of the share price indices , average value of the stock market turnover , average value of the stock market capitali More

This paper survey beliefs of investor on Tehran stock exchange at three break point date (BPD). at first  three BPD with several criterion : average of the share price indices , average value of the stock market turnover , average value of the stock market capitalization .according this three BPD are : the election of Mahmood Ahmadinejad at 2005 , financial crisis at 2008  and the election of Hassan rouhani at 2013 . In addition this paper is base of Brock and Hommes heterogeneous agent model (HAM) framework. Samples are the shares of companies that 40 days before and 40 days after was traded .then with MATLAB software   code was writhed and simulation done. Finding shows that strategy of contrarian trend chaser is the best and we can with genetic algorithm optimize average and standard deviation of coefficient of investment strategy and adaption with real market at break point dates.  Manuscript profile

Open Access Article

71 - Reference Points, Stock’s Major Historical Highs and Lows and Volume: Evidence from Tehran Stock Exchange
Gholamhosein Asadi Seyed Amirhosein Emami

According to prospect theory, investors use reference points for their trading decisions; so that if stock price is below their reference points, they are unwilling to sell their stocks and therefore stock volume declines, but when the stock price exceeds their referenc More

According to prospect theory, investors use reference points for their trading decisions; so that if stock price is below their reference points, they are unwilling to sell their stocks and therefore stock volume declines, but when the stock price exceeds their reference points, they are more likely to sell their stocks and accordingly stock volume increases. The identified reference points in previous researches are: purchase price, stock price in firm-specific events, IPO price and stock’s 52 weeks highs and lows. In this research, stocks’s major historical highs and lows, without any time limits, are directly identified from price charts and are studied as reference points and to do so, the relation beween volume and these points is examined. The research Methodology is event study and by using panel data technique, the sample includes 52606 firm-week observations. Results of the research represents that when stock price reaches or exceeds major historical highs and lows, stock volume increases and therefore we can conclude that these levels are decision-making reference points for investors in Tehran stock exchange. Manuscript profile

Open Access Article

72 - When Behavioral Portfolio Theory meets mean-variance frontier
mohammad sajjad moghaddam Fereydon Ohadi

Finding the most optimize way to make a portfolio “ feasible “ has been ,and always will be a challenge and concern for those active in investment management industry. For several decades, Markowitz's (1952) Mean Variance Theory (MVT) has been considered as More

Finding the most optimize way to make a portfolio “ feasible “ has been ,and always will be a challenge and concern for those active in investment management industry. For several decades, Markowitz's (1952) Mean Variance Theory (MVT) has been considered as the cornerstone of modern portfolio theory. The Behavioral Portfolio Theory (BPT) developed by Shefrin and Statman (2000) is often set against Markowitz's (1952) Mean Variance Theory (MVT). In this paper, we compare the asset allocations generated by BPT and MVT without restrictions. Using Tehran Securities Exchange stock prices from the TSE database for the 2012– 2017 period, A sample of 247 companies are listed on the Tehran Stock Exchange data for a period of 5 years was used for statistical analysis . stock prices contained in the TSE database to generate a possible asset allocations via bootstrap simulation.this paper is the study that empirically determines the BPT optimal portfolio.We show that Shefrin and Statman's (2000) optimal portfolio is Mean Variance (MV) efficient inmore than 70% of cases. Manuscript profile

Open Access Article

73 - Anatomical Analysis of Noise Transactions and Pricing Error
Marziye Abdolbaghi Ataabadi Abdolmajid Abdolbaghi Ataabadi

10.30495/jdaa.2023.702086

AbstractBehavioral finance is one of the main factors of market defects, which focuses on the systematic occurrence of decision-making errors by investors and managers, and studies how investors and managers make systematic and mental errors in their judgments, and expr More

AbstractBehavioral finance is one of the main factors of market defects, which focuses on the systematic occurrence of decision-making errors by investors and managers, and studies how investors and managers make systematic and mental errors in their judgments, and expresses the lack of rational behavior of investors in the capital market, which leads to The creation of stock price differences is due to its intrinsic value. The purpose of the current research is to analyze the anatomy of noisy transactions and pricing errors caused by the entry of uninformed traders. The statistical population of this research is the companies accepted in the Tehran Stock Exchange and its statistical sample includes the data of 113 companies. The sampling method was systematic elimination. The method used to estimate the model is the multivariate regression method using the combined data method. The research results show that noise trading has a positive and significant effect on the level of stock pricing error. Also, the pricing error is different at different levels of noise trading; That is, the more the noise, the more the pricing error. This is despite the fact that in addition to the fluctuations of noise transactions, the B/M ratio also affects it. In other words, the pricing error is different at different levels of B/M ratio. As a result, according to the results of the research, the entry of uninformed traders in the stock market creates noise and causes the deviation of the stock price. Manuscript profile

Open Access Article

74 - The effect of personality traits on investment decisions with the mediating role of risk tolerance
Arezou Pouresgandar Raziabad Alireza Fazlzadeh Vahid Ahmadian Sajad Naghdi

Purpose: The aim of this research was to investigate the effect of personality traits on investment decisions with the mediating role of risk tolerance in the Tehran Stock Exchange. Research Methodology: This research was conducted in 2022 and is of an applied nature, More

Purpose: The aim of this research was to investigate the effect of personality traits on investment decisions with the mediating role of risk tolerance in the Tehran Stock Exchange. Research Methodology: This research was conducted in 2022 and is of an applied nature, employing a descriptive-survey methodology. The statistical population of this research includes all individual investors in the Tehran Stock Exchange. The sample size in this study is 386 individuals. Data collection was carried out using a standard Likert scale questionnaire. The validity of the questionnaire was confirmed through content validity, and its reliability was verified using Cronbach's alpha. Data analysis was performed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) approach, facilitated by SPSS and SMARTPLS software. Findings: The results showed that personality traits significantly affect investment decisions and risk tolerance. Furthermore, risk tolerance significantly impacts investment decisions and mediates the relationship between personality traits and investment decisions. Originality / Value: The scientific contribution of this research lies in using risk tolerance as a mediating variable to examine the effect of personality traits on investment decisions. Additionally, the use of structural modeling with the Partial Least Squares approach, aided by SMARTPLS software, is highlighted. Manuscript profile

Open Access Article

75 - Personality types of stock market investors and their impact on managerial decisions: a study using agent-based simulation.
Seyed Farhad Gooran Heydari Abbas Toloui eshlaghi Ahmad Ebrahimi Mohammad Reza Motadel

Given the complexities of the economy and considering the influential role of financial markets on the economy, as well as the importance of the economy for the country and society, methods and tools that can effectively and efficiently assess, predict, control, and gui More

Given the complexities of the economy and considering the influential role of financial markets on the economy, as well as the importance of the economy for the country and society, methods and tools that can effectively and efficiently assess, predict, control, and guide the market and economy in a manner accessible to policymakers such as the Ministry of Economy and Finance, Securities and Exchange Organization, Central Bank, High Council of Stock Exchange, or Ministry of Industry, will be in a special position. This effectiveness and efficiency are achieved when attention to hidden layers of system relationships such as collective human behavior, which adds to the complexity of the market and economy, is not overlooked. In the present study, by employing the capacities of agent-based simulation in a mixed-method research, human behavior is combined using quantitative and qualitative methods and simulation technology as the third method of scientific research, in addition to comparative and inductive approaches. The research is descriptive and applied, and agent-to-agent simulations of real market players in NetLogo software with modeling the market, validation using Rust and Rand tests, and sensitivity analysis using the Borgonovo approach have been conducted. The results of the study indicate a direct relationship between investors' risk tolerance and stock market returns and the overall stock market index growth. With the prediction made in the designed model, in addition to risk type, the possibility of assessing and monitoring other behavioral characteristics of investors, as well as with consideration of the definition of other factors for other active market players, the study of their behavior's impact on the overall index and other important indicators is also available. Therefore, in this study, for the first time, the influence of the behaviors of macroeconomic variables on the behavior of all players present in the stock market was modeled and simulated using agent-based simulation capacities. Manuscript profile

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