Investor Sentiment

Open Access Article

1 - The Impact of Investor and Managers' Behavioral Bias on the Stock Price Bubble in capital market of Iran
nazanin bashirimanesh shahnazi hossein

10.30495/jfksa.2022.20210

In emerging capital markets, the inability of investors to analyze financial information, scarcity of information, as well as the impact of macroeconomic and political factors on financial markets, causes the investor to focus on market excitement and the behavior of ot More

In emerging capital markets, the inability of investors to analyze financial information, scarcity of information, as well as the impact of macroeconomic and political factors on financial markets, causes the investor to focus on market excitement and the behavior of other investors. The emotional and herd behaviors of investors are the source of the emergence of various anomalies such as price bubbles and the formation of sharp fluctuations in the market. Managers also have behavioral biases such as overconfidence, myopia and narcissism, which leads to a favorable image of the business and delays in presenting bad news, resulting in stock price bubbles. Accordingly, the purpose of this study is to investigate the effect of biases of investors and managers' behavior on the stock price bubble. The research sample included 129 companies listed on the Tehran Stock Exchange in the period 1392 to 398.To test the hypotheses, multivariate regression method with combined data was used.The results show that investors' behavioral distortions (emotional and herd behavior) increase the gap between the intrinsic stock price of the company and its value set by investors and lead to the formation of stock price bubbles. Managers' behavioral biases (overconfidence myopia and narcissism) also lead to the emergence of stock price bubbles. Manuscript profile

Open Access Article

2 - Investigating the effect of investor sentiment on the expected earnings growth rate
M. Baharmoghaddam Omid Pourhidari Hossein Jokar

Several studies have examined the investor sentiment in the behavioral finance. But, most prior studies solely document the phenomenon that investor sentiment could affect stock price combined with accounting information and indicate the heterogeneity of the sentiment e More

Several studies have examined the investor sentiment in the behavioral finance. But, most prior studies solely document the phenomenon that investor sentiment could affect stock price combined with accounting information and indicate the heterogeneity of the sentiment effect. However, the existing literature rarely provides a theoretical basis for the mechanism behind the effect of sentiment and the accounting information. Therefore, this paper the through theoretical basis effect of investor sentiment on the expected earnings growth rate analyzes the mechanism behind the effects of investor sentiment and accounting information on stock price based on the residual income valuation model. In order to reach this goal, the study has been carried out on a sample of 560 companies, during the 2009-2016 reporting period based on the Multivariate regression. The results show that higher sentiment leads to more optimistic expectations regarding future earnings growth and these optimistic expectations leads that investor sentiment changed the expected earnings growth rate, thus affecting the accounting information and stock price. Manuscript profile

Open Access Article

3 - Assessing the moderating role of corporate governance system on the relationship between investors' emotional tendencies and changes in stock returns of companies listed on the Tehran Stock Exchange
Elham Farokhi Saeid Jabbarzadeh

10.30495/jfksa.2023.21896

Some studies have shown that investors' emotions can influence their financial and investment decisions, as well as stock returns; On the other hand, stock risk can also affect this relationship; Therefore, the present study has examined the moderating role of corporate More

Some studies have shown that investors' emotions can influence their financial and investment decisions, as well as stock returns; On the other hand, stock risk can also affect this relationship; Therefore, the present study has examined the moderating role of corporate governance system on the relationship between investors' emotional tendencies and changes in stock returns of companies listed on the Tehran Stock Exchange.In this study, the independent variable is investors 'feelings and the dependent variable is stock return fluctuations. To test the research hypotheses, the research model estimation method in the form of panel data and analysis based on the model of fixed effects and random effects by Eviews software based on composite data has been used. The sample includes 139 companies listed on the Tehran Stock Exchange in the period 1394-1399, which have been selected by a systematic elimination method. Findings showed that there is a significant relationship between investors' emotional tendencies and fluctuations in stock returns. Also showed that the variable of institutional shareholders can moderate the relationship between investors' emotional tendencies and fluctuations in returns. Manuscript profile

Open Access Article

4 - Analysis of the the Impact of Symmetric and Asymmetric Shocks of Oil Price on Investor Sentiment in IRAN: Markovs-Switching Approach
Maryam Yosofinezhad Hossein Sharifi-Renani Saeed Daei-Karimzadeh

10.30495/jfksa.2022.19838

According to the special role of oil in the international economy and also the effect fluctuations of this global variable on the performance of financial market and its role in financial dicisions always has been considered by investors.Therefore, the role of oil in th More

According to the special role of oil in the international economy and also the effect fluctuations of this global variable on the performance of financial market and its role in financial dicisions always has been considered by investors.Therefore, the role of oil in the economy is not only for macroeconomic indicators, rather it has affected on the stock market indicators and variables. Also, according to the special role of oil in the economy of Iran and foreign exchange earnings, the stock market can be affected by fluctuations of oil price. Therefore, determining and recognizing the impact of stock price has played a significant role in forcasting and the overall market trend. And it should also be considered important in the level of investor sentiments and desire to invest. One of the components that always fluctuate the investor sentiments is oil price. In countries such as Iran , Which are heavily dependent on oil revenues the effects of oil price fluctuations are also more sever.Considering that the result of oil exports is the entry of currency in to the country and these currencies are used by the government to developthe country.So the exchange rate is one of therelated  categories with investor sentiments.According to the description provided to achieve prosperity and stability development ,studing and recognizing the investor sentiments and the effective factors are special important.Accordingly , in present study using the monthly data for the years from 1391 to 1398 with the approach of markovs swiching  identify the factors affecting the investment.Research results show that fluctuation in oil prices, exchange rate , money supply and consumer price index can be effective on the investor sentiment. Manuscript profile

Open Access Article

5 - Evaluating The Simultaneous Role of Investor’s Sentiment and Brand Equity on Short-Term performance of the Initial public Offerings (Evidence from the Iran Capital Market)
Nooshin Kafshi Abdolmajid Abdolbaghi

The purpose of this study is to evaluaing the Simultaneous role of investor’s sentiment and brand equity on the performance of the initial public offerings in the capital market of Iran.The research sample including 87 the companies providing initial public offeri More

The purpose of this study is to evaluaing the Simultaneous role of investor’s sentiment and brand equity on the performance of the initial public offerings in the capital market of Iran.The research sample including 87 the companies providing initial public offerings in the exchange and over the counter markets of Iran selected in a perioud from 2008 to 2015. To measure investor’s sentiment we apply the Arms Index and the Hoolihan and the Tobin's Q indexes have been used to measure brand equity. The empirical Results show that based on Hoolihan's index, there is not any significant difference between initial public offerings short term returns and strong and weak brand. However, based on the of Tobin's Q, index in daily short run sections,i.e. first and second days, there are positive difference between strong and weak brands but in sections longer than six to twelve months, the difference between the return of strong and weak brands are negative. Indicating a correction in supply pricing by the market. Also supply in the sentiment conditions combined with optimism in short-run shows a better performance in comparing to those made in the pessimistic conditions of the market. Finally, the results show simultaneous effect of the brand equity and optimistic point of view on initial public offerings’ performance during one month to ten month sections after supplying Manuscript profile

Open Access Article

6 - Threshold effect in the relationship between investor sentiment and stock market returns: a PSTR specification
ommolbanin Dadar Ali Najafi Moghadam ali Nemati

Investors Sentiment about the future of capital markets can play an effective role on the market price trend and stock return and refer to the views of investors about the future of the capital market. This paper investigates the threshold effects of Investors Sentiment More

Investors Sentiment about the future of capital markets can play an effective role on the market price trend and stock return and refer to the views of investors about the future of the capital market. This paper investigates the threshold effects of Investors Sentiment on stock return of firms listed in Tehran Stock Exchange for the period of 15 Years (2005-2019), with construct Investors’ Sentimen index, using Panel Smooth Transition Regression (PSTR) model. The linearity test results indicate strongly nonlinear relationship among variables under consideration. Moreover, considering one transition function and one threshold parameter, as a two regime model, is sufficient to specification of nonlinear and threshold relationship among variables.The results indicate that threshold value for this firms is 71.34 and the estimated slope parameter is 0.32. The findings of this study indicate that in the first regime, investor sentiment effect is positively activated, increasing stock returns; however when their overconfidence sentiment exceeds some threshold, this effect becomes inverse in the secend regime for a high threshold level of market confidence and investor over-optimism. Manuscript profile

Open Access Article

7 - 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

8 - The Investigation of the Role of Momentum and Investors' Sentiments on the Herding Behavior in Tehran Stock Exchange
Afsaneh Soroushyar Saied Ali Ahmadi

In two recent decades, the investigation of herding behavior takes into consideration of many researchers. But a little research has done about the factors influence this phenomenon. The purpose of this paper is to investigate the role of momentum, investors' sentiments More

In two recent decades, the investigation of herding behavior takes into consideration of many researchers. But a little research has done about the factors influence this phenomenon. The purpose of this paper is to investigate the role of momentum, investors' sentiments and firm size on the herding behavior in Tehran Stock Exchange. In this study, daily returns of market and firms for the period of 2001 to 2014 are used. In order to testing the research hypothesis multiple regression analysis and time series data are used. Furthermore, Granger causality tests for studying the Causal relationship between investor sentiments and herding behavior is used.The research results indicate that investors' sentiments significantly effect on herding behavior. Granger causality tests support this result. But there are not any evidences about the influence of momentum and firm size on the herding behavior. Manuscript profile

Open Access Article

9 - Investigate the relationship between investor sentiment, courage in predicting dividends and future corporate performance
Reza Gholami Jamkarani Zahra Akbari Masoud Bakhtiari

The purpose of this research is to investigate the relationship between investor sentiment, courage in predicting dividends and future performance of the company in Tehran Stock Exchange. The research is applied from the direction of the target, and, depending on the ty More

The purpose of this research is to investigate the relationship between investor sentiment, courage in predicting dividends and future performance of the company in Tehran Stock Exchange. The research is applied from the direction of the target, and, depending on the type of research project, relying on historical information, then the event. The method of research inference is inductive and correlation type and consists of 3 hypotheses. The research community is the accepted companies in Tehran Stock Exchange for a period of 5 years. To document the results of statistical analysis and provide final solutions, the researcher used a statistical method using Eviews software to analyze the questions and hypotheses. The research was conducted using regression Compound linear and F and t tests. The results of the test of research hypotheses showed that investor's feelings on courage affect the prediction of dividends and company growth, but not affect future returns.     Manuscript profile

Open Access Article

10 - The Effect of Investors Sentiment and Free Float on Stock return in TSE Listed Companies by Using Generalized Method of Moments (GMM)
ommolbanin Dadar seyedeh mahboobeh jafari

This paper analyses the effects of investor sentiment and Free Float on stock price, based on Stock return. This study Uses data from firms listed in Tehran Stock Exchange over a period of 6 Years (2010-2016)and constructs investors' Sentiment Index and examines investo More

This paper analyses the effects of investor sentiment and Free Float on stock price, based on Stock return. This study Uses data from firms listed in Tehran Stock Exchange over a period of 6 Years (2010-2016)and constructs investors' Sentiment Index and examines investors' sentiment effect on Stock return. Based on current expectations, when the free float is more, more deals done and consequently the share price volatility will also increase. Shareholders expect more profits from stocks which have more free floats. In this study, in order to increase the degree of confidence in the results, has been used Dynamic Panel method and estimation of the equation generalized moments (GMM).The findings of this study indicate that there is a positive and significant relationship between investor sentiment and free float stocks and stock returns. Manuscript profile

Open Access Article

11 - The Effect of Investor Sentiment on the Market Reactions to Earnings Restatements
Neda rostami donya ahadiyan

10.30486/fbra.2021.1931950.1008

Investors' sentiment often stem from held mental beliefs or information unrelated to stock value and can lead to extreme or low reactions to good or bad news, fanatical expectations such as speculative tendencies and optimistic or pessimistic optimism. Meanwhile, restat More

Investors' sentiment often stem from held mental beliefs or information unrelated to stock value and can lead to extreme or low reactions to good or bad news, fanatical expectations such as speculative tendencies and optimistic or pessimistic optimism. Meanwhile, restatement of financial statements may be one of the factors affecting the sentiment of investors. The purpose of the present study is to investigate the effect of investors’ sentiment on the market reactions to earnings restatements. The statistical sample consists of 119 companies listed on the Tehran Stock Exchange in the period 2012 to 2020. The results show that the willingness of investors has a significant effect on the market reaction to the earnings restatement. The results also show that the high investor sentiment, both in the presence of restatement and non-restatement, has a positive effect on market reaction, but in the presence of restatement, the effect of high investor sentiment on market reaction is less. Another result of the research indicates that the low investor sentiment has a negative effect on the market reaction in the presence of a restatement and a positive effect when there is not restatement. Therefore, it can be said that the restatement is effective on the impact of low investor sentiment on the market reaction. Manuscript profile

Open Access Article

12 - Investor Sentiment, Misstatements, and Auditor Behavior
Faegh Ahmadi amirhossein jamali mohammad hadi hosseini sarani

10.30486/fbra.2022.1950741.1071

High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. In this study, this line of work is developed by documenting the increased likelihood of misstatements and the consequent increase in au More

High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. In this study, this line of work is developed by documenting the increased likelihood of misstatements and the consequent increase in audit risk in the face of high investor sentiment. The main objective of this study is to investigate the effect investor sentiment on misstatements, and auditor behavior of listed companies in Tehran Stock Exchange. The sample consists of 94 firms listed in Tehran Stock Exchange in the period from 2017 to 2021. The research hypotheses were tested using multivariate regression model with panel data method. The results showed that investor sentiment have significant positive effect on the misstatements with in 95% confidence level. In addition, other findings indicated existence of a significant positive effect investor sentiment on audit fees and going concern opinion. As a result, The findings enhance the understanding of how investor sentiment affects misstatements, and auditor behavior, and enrich the literature on corporate auditor pricing and reporting decisions. Manuscript profile

Open Access Article

13 - Effect of Corporate Social Performance on Financial Performance at Listed companies in the Tehran Stock Exchange with Moderating Role of Investor Sentiment
Hosein Asgari Aloiuj Hasan Hasan Matar Khabat alanzi

10.30486/fbra.2023.1992109.1211

Financial performance is one of the performance evaluation criteria of companies, which evaluates the company based on the amount of profit earned by the company in a financial period. The aim of the present study is to investigate the impact of corporate social perform More

Financial performance is one of the performance evaluation criteria of companies, which evaluates the company based on the amount of profit earned by the company in a financial period. The aim of the present study is to investigate the impact of corporate social performance (CSP) on the financial performance of companies listed on the Tehran Stock Exchange, emphasizing the moderating role of investor sentiments. For this purpos, 121 companies were selected as the final sample of the research using the systematic elimination method, and the required data were collected from these companies during the years 2014 to 2021. This study is applied research and the type of statistical analysis is descriptive-correlational. The results Indicates investor sentiments have a positive and significant effect on financial performance. Also, the impact of CSP on financial performance has been directly and significantly observed. Finally, the findings of the research showed that investor sentiments have strengthened the impact of CSP on the financial performance of companies listed on the Tehran Stock Exchange. Manuscript profile

Open Access Article

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

10.22034/amfa.2022.1948257.1668

Manuscript profile

Open Access Article

15 - Modeling the impacts of OPEC oil price fluctuations on the Iranian investors sentiments- nonlinear and time-varying parameter
S. Kazem Chavoshi Arefeh Sharifi

10.30495/fed.2023.698842

  Abstract In classical finance, investors sentiment play no role in expected returns and stock prices, but behavioral finance believes that investors decisions are influenced by their sentiment.In oil-producing countries, including Iran, the news of OPEC oil pri More

  Abstract In classical finance, investors sentiment play no role in expected returns and stock prices, but behavioral finance believes that investors decisions are influenced by their sentiment.In oil-producing countries, including Iran, the news of OPEC oil price fluctuations affects investors sentiments . we used the monthly data for the period of research 2008 to 2021.The research method of this article is an application uses the nonlinear and time varying parameter models.The results show that OPEC oil price fluctuations on investors' investment follow nonlinear process .Change in a standard deviation in OPEC oil price fluctuations over time has a U-shaped effect on investor sentiment (moving on a horizontal axis).Changes in standard deviation in OPEC oil price fluctuations in each period (moving on the transverse axis), at the beginning of the second period have a strong negative effect and in the middle and end of period have a small negative effect on investors sentiments. Manuscript profile

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