behavioral bias

Open Access Article

1 - The effect of Earnings-Announcement Narrative and Investor Judgment with emphasis on behavioral biases
Hassan Chenari Bouket Bahman Banimahd Hamid Ahmadzadeh

10.30495/jfksa.2022.19643

The purpose of this study is the effect of Earnings-Announcement Narrative and Investor Judgment with emphasis on behavioral biases. This study was performed on 245 investment experts and managers and ordinary investors who were randomly selected in 1399. To analyze the More

The purpose of this study is the effect of Earnings-Announcement Narrative and Investor Judgment with emphasis on behavioral biases. This study was performed on 245 investment experts and managers and ordinary investors who were randomly selected in 1399. To analyze the data and test the research hypotheses, the structural equation model was used with the help of Smart PLS software. Findings from the study indicate that the effect of the tone of the Earnings-Announcement on the investor's judgment is significant in cases of neutrality and all-roundness, but in the case of conflict has no significant effect. According to the calculated t-statistics on the effect of behavioral biases on investor judgment, it can be said that in all three cases of neutrality, alignment and conflict are not statistically significant and the second and third hypotheses of the study are not confirmed. According to the above result, it can be acknowledged that the effect of the profit announcement tone through behavioral biases on the investor's judgment is not statistically significant and the fourth and fifth hypotheses of the research are not accepted. Among the control variables, the effect of mathematical literacy on investor judgment is statistically significant. Findings from the test of research hypotheses in accordance with the theory of information duplication processing Epstein (1996) is based on an analytical system that is not affected by emotions and feelings in judgment and decision and logic and reasoning play a major role in judging and decision making. Manuscript profile

Open Access Article

2 - Social mood and behavior of investors; evidence of herd behavior of investors in the religious months
Sobhan Eskini Alireza Aghajani

Studies show religion is effective factor in forming social mood. Therefore, the impact of religion on behavioral bias affected by social mood can be studied. This study is an ex-post facto research that Using observed data tests possibility of herd behavior in religiou More

Studies show religion is effective factor in forming social mood. Therefore, the impact of religion on behavioral bias affected by social mood can be studied. This study is an ex-post facto research that Using observed data tests possibility of herd behavior in religious months, consist of Muharram, Ramadan, and Zul-Hijjah, in Iranian capital market. After studying 1206 days of Daily trade in Tehran Stock Exchange during 1989-1993 (Solar Hijri-Iranian calendar), results show possibility of herd behavior in religious months more than other months of the year. Between religious month, Ramadan has the greatest impact of forming herd behavior. Also, the theories point out market performance and trading volume affect herd behavior. Accordingly, using robustness tests, this study investigates possibility of herd behavior affected by market performance and trading volume. However, there was no certain pattern. These results make contributions to the literature on the effects of social norm studies on markets, herding in stock market, and Islamic finance studies in particular. 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 - 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

5 - 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

6 - 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

7 - the Effect of Behavioral Biases of Investors on their Decision in Investing at Stocks, Exchange and Fixed Premium Sheets and Bank Deposits
narges yazdanian mohammadreza saeidi

The aim of this study was to evaluate the effect of behavioral biases of investors on their decision in investing at stocks, exchange and fixed income securities. This study was a descriptive-correlation based on gathering information and an applied research based on it More

The aim of this study was to evaluate the effect of behavioral biases of investors on their decision in investing at stocks, exchange and fixed income securities. This study was a descriptive-correlation based on gathering information and an applied research based on its porpuse. The statistical population of research consists of all investors in stock market, exchange market and fixed premium sheets and bank deposits investors in an undefined number. Referring to Cochran sampling formula a number of 513 individuals were selected in a random way and validated questionnaires of study distributed among them. Data of research was analyzed by structural equation models. Findings showed that cognitive and emotional biases have direct and significant effect on the investor’s attitude to investment in each of stocks, exchange and fixed premium sheets and bank deposits assets. The results showed that investor’s attitude to investment in risky assets such as stocks and exchange, is more affected by their emotional biases, while investment in non risky assets such as fixed income securities is more affected by investor’s cognitive biases. Manuscript profile

Open Access Article

8 - 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

9 - Evaluate the stock market performance of companies based on uncertainty in the internal information environment and behavioral biases
reza aghaha sina kherdyar Farzin Rezaei fadhel mohamadi node

Uncertainty due to environmental changes, limited resources and higher profits have made planning a necessary necessity. For this reason, recognizing and analyzing the internal environment is very important for directing the resources of organizations. Understanding the More

Uncertainty due to environmental changes, limited resources and higher profits have made planning a necessary necessity. For this reason, recognizing and analyzing the internal environment is very important for directing the resources of organizations. Understanding the internal environment of the organization in practice means determining the strategic strengths and weaknesses of the organization, which is possible through the identification and evaluation of internal strategic factors. The purpose of this study is to evaluate the stock market performance of companies based on uncertainty in the internal information environment and behavioral bias. To test the hypotheses, the information of 84 companies listed on the Tehran Stock Exchange in the period between 1397-1391 has been used. The results showed that there was a positive and significant relationship between managers 'distrust and corporate value, but there was a negative and significant relationship between managers' distrust and corporate equity costs. Had. The results showed that there is a positive and significant relationship between managers' pessimism and information prominence and the cost of equity of companies, respectively. Uncertainty in the internal information environment weakens the relationship between managers 'distrust and corporate value, but internal information uncertainty strengthens the relationship between managers' pessimism about stock market performance and information prominence with corporate value. But uncertainty in the internal information environment undermines the relationship between information prominence and the cost of corporate equity. Manuscript profile

Open Access Article

10 - The Investigating of effect of Psychological Variables on Investor Decision Making Using Canslim and Financial Analysis
shirvan barari Ghodratallah Talebnia Hamidreza Vakilifard Hossein Izadi

The main purpose of this study is to investigate the effect of psychological variables on investors’ decision-making in companies listed on the stock exchange. For this purpose, using Cochran formula and selected 193 shareholders of companies listed in Tehran Stoc More

The main purpose of this study is to investigate the effect of psychological variables on investors’ decision-making in companies listed on the stock exchange. For this purpose, using Cochran formula and selected 193 shareholders of companies listed in Tehran Stock Exchange during 1398. The purpose of the study is causality. The data collection tool was a questionnaire that a researcher-made questionnaire was used in this study. Its 36 questions assess 12 psychological variables (behavioral biases) and 10 questions analyze investor behavior (CANSLIM -Financial Analysis). The validity and reliability of the questionnaires were evaluated. Confirmatory factor analysis, construct validity and Cronbach's alpha coefficients confirmed the reliability of the variables. The results of structural equations showed that the trust, adaptability, representation, self-attribution, imaginability, latency and ambiguity, and eventivism had a significant effect on the investors using CANSLIM Analysis. Trust, reliance, adjustment, familiarity, imagination, ambiguity and eventivism have a significant impact on investors using financial analysis. Structural equation results also showed that 12 behavioral bias accounts for 75% of the variance in investor behavior of consumer analysis and 68% of the variance of investor behavior on financial analysis. As a result, it can be said that behavioral biases affect investor behavior. Manuscript profile

Open Access Article

11 - A Model to Identify the Impact of Spiritual Intelligence on Emotional Intelligence and Its Role in Behavioral Bias Control (Based on Halo Error) and Its Role on Investor Decision Making
ehtesham shahabirad khosro faghani makrani Ali Zabihi

The purpose of the present study is to investigate the effect of spiritual intelligence on emotional intelligence and its role in controlling auroral errors in order to improve the process of investor decision making. To achieve this goal, a random sample of 300 TSE inv More

The purpose of the present study is to investigate the effect of spiritual intelligence on emotional intelligence and its role in controlling auroral errors in order to improve the process of investor decision making. To achieve this goal, a random sample of 300 TSE investors was selected for the sample. Required data were obtained through distribution and collection of questionnaires. Pearson correlation coefficient and structural equation test were used to analyze the data. Data were analyzed by SPSS software and graphs by EXCEL software and Structural equation analysis by AMOS software.According to the factor loadings in the research model, among the variables of spiritual intelligence and emotional intelligence, respectively, in spiritual intelligence, belief in religious capacity in factor decision making with factor of 0.81, heart rate in decision making of 0.67, conversion to failure Opportunity 0.40, spontaneity, courage 0.4 had the most impact and emotional intelligence index, respectively, factor index 0.74, stress and stress factor 0.64, emotion control 0.59, external communication adjustment 0.35 had the most effect on the aural error variable, respectively. Corporate cheating variable with the factor of 0.88, disclosure rating decline of 0.55 had the most impact. The level of 0.25 on emotional intelligence, emotional intelligence on control of perceptual errors is 0.62 and finally its effect on decision making is 0.24. Manuscript profile

Open Access Article

12 - Analysis and Evaluation of Effective Behavioral Biases in Investors' Decisions and Determining the Priority of Identified Categories from the Perspective of Experts using Demetel Technique and Analytic Hierarchy Process (AHP)
amir ,masoud jahani

Each person's behavior is the basis for making his decisions in the financial arena, and mistakes in those behaviors will have many consequences. Recognizing the behaviors and consequently the decisions and behaviors of the individual has an important role in providing More

Each person's behavior is the basis for making his decisions in the financial arena, and mistakes in those behaviors will have many consequences. Recognizing the behaviors and consequently the decisions and behaviors of the individual has an important role in providing solutions to correct existing deviations. in order to explain the model, the interview method and the approach based on grounded theorizing, and to select the interviewees, the snowball sampling method has been used. After conducting 19 interviews with stock market activists during 1397 to 1398, theoretical saturation was obtained. Then, the most effective causal factors were determined and ranked based on the opinions of experts and using Demetel technique and Analytic Hierarchy Process (AHP), respectively.The extracted results were analyzed using Spss and Amos and showed that all biases have a direct and significant impact on investor decisions. Manuscript profile

Open Access Article

13 - Behavioral biases and decisions of real and legal investors under conditions of uncertainty in Tehran Stock Exchange
mohammad zeynivand mohammad hasan janani mahmod hematfar mohammad reza setayesh

In this study, the behavioral biases and decisions of real and legal investors under conditions of uncertainty in the Tehran Stock Exchange were investigated. For this purpose, two market conditions including uncertainty due to uptrend without resistance and uncertainty More

In this study, the behavioral biases and decisions of real and legal investors under conditions of uncertainty in the Tehran Stock Exchange were investigated. For this purpose, two market conditions including uncertainty due to uptrend without resistance and uncertainty due to downtrend without support are studied as conditions of uncertainty in investment decisions and the effect of 15 behavioral biases of investors in two groups of investors. Real and legal were tested on financial decisions based on buying, selling or not taking action for the transaction. The statistical population of the study included real and legal investors in the Tehran Stock Exchange, of which 385 real investors and 100 legal investors were selected by available sampling method and research questionnaires were provided to them. In order to analyze the data obtained from the distribution of the questionnaire, the fitting of polynomial logistic regression models was used and the results showed that the behavioral biases of real and legal investors had different effects on their investment decisions and also the type of influence of each. Behavioral biases on a variety of investment decisions have varied due to market uncertainty. Finally, models were proposed to predict the investment decisions of both groups of real and legal investors using their behavioral biases. Manuscript profile

Open Access Article

14 - Explain the lived experience of investors from the effects of oil, dollar and gold prices on the capital market and their behavioral biases
mahmoud goudarzi amir mohammadzadeh seighali seighali

Purpose: The goal of this research is to identify the effects of oil, dollar and gold prices on the capital market; and meanwhile the investors’ Behavioral Biases. Method: The same research is a qualitative study of phenomenological type. Field data were collected More

Purpose: The goal of this research is to identify the effects of oil, dollar and gold prices on the capital market; and meanwhile the investors’ Behavioral Biases. Method: The same research is a qualitative study of phenomenological type. Field data were collected using in-depth interviewing techniques and theoretical saturation criteria among 10 active participants of Tehran Stock Exchange who have at least three years of experience in investing in financial markets. After the implementation of the analysis phase using the Colaizzi method and MAXQDA10 software, the recorded interviews have been conducted. Findings: Based on data analysis, seven main themes including external factors, parallel markets, cognitive biases, emotional biases, abnormal phenomena (in behavioral economics) as well as cultural and personal factors were extracted from the interviews. The results emphasize on the need for taking measures to predict exchange rates and avoid government-mandated pricing.Key words: Currency, Gold, Oil, Behavioral Biases, Capital Market Manuscript profile

Open Access Article

15 - Presenting an Investment Efficiency Model Based on Managers' Behavioral Biases with Emphasis on the Role of Investment Sentiment
khadijeh Rabiee Hassan Fotouhi Foshtomi

Today, managers' behavioral biases play a very important role in investment and investment sentiment. Behavioral methods of managers can shape the efficiency of investment in companies. Based on this, the main goal of the current research is to provide an investment eff More

Today, managers' behavioral biases play a very important role in investment and investment sentiment. Behavioral methods of managers can shape the efficiency of investment in companies. Based on this, the main goal of the current research is to provide an investment efficiency model based on the behavioral biases of managers, emphasizing the role of investment sentiment in companies listed on the Tehran Stock Exchange. The statistical population of the research is all the companies admitted to the Tehran Stock Exchange. As a sample, 143 companies were examined in the period from 2012 to 2019. Hypotheses testing was done using the combined data regression method and panel data in EViews10 software. The results obtained at the 95% confidence level using the generalized least squares method showed that overconfidence bias has a negative and significant effect on investment efficiency. Also, investment sentiment have a moderating and negative role in the relationship between overconfidence and investment efficiency. But the biases myopia, optimism and agency intuition variables have no significant effect on investment efficiency. Also, investment sentiment do not play a moderating role in the relationship between biases myopia, optimism and agency intuition with investment efficiency. Based on the results, it can be said that based on behavioral financial principles, the increase in investors' desire to invest in a company increases the overconfidence of managers, and they invest based on their feelings, which ultimately reduces investment efficiency. Manuscript profile

Open Access Article

16 - The effect of recognizing managers 'behavioral biases on investors' emotional tendencies through the gray hierarchical analysis process
arash Hosseinpur Mohammed Hussain Ranjbar Jahanbakhsh asadnia faegh ahmadi

AbstractThe purpose of this study is to identify the emotional tendencies of investors based on recognizing the behavioral biases of managers. The methodology of this research was a combination that in the first step in order to identify the components of managers' beha More

AbstractThe purpose of this study is to identify the emotional tendencies of investors based on recognizing the behavioral biases of managers. The methodology of this research was a combination that in the first step in order to identify the components of managers' behavioral biases from meta-combined analysis with the participation of 18 academic experts. Then, through Delphi analysis, the identified indicators were examined. In Delphi analysis, the identified components of the CEO's behavioral biases on investors' emotional inclinations were examined and it was found that recognizing the CEO's utilitarian behavioral biases can increase the capital's emotional inclinations. Then in a small part, 101 companies in the period 2011 to 2018 were examined, which showed that the biases of the CEO's benevolent behavior on the emotional tendencies of investors were examined. And showed that the management of real and accrued earnings has a negative and significant effect on the emotional tendencies of investors. Manuscript profile

Open Access Article

17 - Explaining the model of investors' emotional biases affecting stock price fluctuations in Tehran Stock Exchange By relying on the biases of Endowment, self-control, Optimism and Cognitive Dissonance
mahdi abbasi asl Mohammad Reza Rostami mehrzad minoii

One of the most vital research programs of financial knowledge today, which is at the forefront of rejecting the theory of efficient markets, is financial behavior theory, which is the cause of joint efforts between financial sciences and social sciences and has deepene More

One of the most vital research programs of financial knowledge today, which is at the forefront of rejecting the theory of efficient markets, is financial behavior theory, which is the cause of joint efforts between financial sciences and social sciences and has deepened our knowledge of financial markets. Today's financial topics, which we are going to explain, describe and compare, are called financial behavior, which in simple terms is a pattern of thinking in which markets use patterns consisting of social sciences, psychology, finance and several other disciplines. They are studied, and in other words, economic agents are not rational in behavioral patterns contrary to neoclassical theories, but are normal either because of their preferences or because of cognitive biases. The purpose of this study is to design and explain a model for identifying behavioral factors affecting stock price fluctuations in the Tehran Stock Exchange. This research is applied in terms of purpose and in terms of working method is a type of survey research. The data of this research were analyzed using SmartPLS software. The results of the study showed that the emotional bias of short-sightedness, the emotional bias of optimism and the emotional bias of adaptation affect the fluctuations of stock prices of companies. Manuscript profile

Open Access Article

18 - 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

19 - 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

20 - An Analytical Modeling of Investments Decision-making Behavior in Tehran Stock Exchange
Seyed Kazem Chavoshi Farshid Falatoon Nejhad

Optimal Investment in Today’s Competitive market, requires a Justly Distribution of Services to Capital Market Participants by Identifying and Priotizing the most important factors that affects on behaviors of investors decision-making. This paper defined investme More

Optimal Investment in Today’s Competitive market, requires a Justly Distribution of Services to Capital Market Participants by Identifying and Priotizing the most important factors that affects on behaviors of investors decision-making. This paper defined investment behavior inspiering from consumer behavior, and by using AMOS software for Confirmatory Factor Analysis could fitting and Classification the affecting factors on decision-making process of capital market participants in four fields, searching behavior, validation behavior, financial Analyst behavior and behavioral biases. These results were obtained from analysis of the 140 Investors responses in Tehran Stock Exchange that gather with questionnaire included 33 affecting factor on investment behavior. By using SPSS software for Friedman test, we understand that there was significant difference between kinds of Investors decision-making behaviors. Then prioritizing behavoirs by there Importance as follows: 1)    Validation behavior (Friedman Rank 3.43), 2)    Financial Analyst behavior (2.56), 3)    Searching behavior (2.52) and 4.Behavioral biases (1.49). Manuscript profile

Open Access Article

21 - 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

22 - Explain momentum and its sources in Tehran stock exchange
Mohammadreza Rostami Hojatollah Ansari Nazdar Heydari

In this survey, we explain momentum and its sources in Tehran stock exchange. Our sample is all listed companies in Tehran stock exchange. Ninety corporations have been selected by limitation sampling Method and been investigated during the period of 1385-1390.  Hy More

In this survey, we explain momentum and its sources in Tehran stock exchange. Our sample is all listed companies in Tehran stock exchange. Ninety corporations have been selected by limitation sampling Method and been investigated during the period of 1385-1390.  Hypothesis tests are done using compare means and OLS methods. Findings indicate that momentum strategy in both ranking and holding six and three months periods were profitable. In addition, the winner and loser stock returns were estimated using CAPM and Fama-french three factor models and the hypothesis tests indicated that the excess returns of momentum strategy has not been removed but modified slightly. In order to describe momentum sources as well, behavioral bias and risk factors as independent variables of equation have been tested. The results implied that behavioral biases as sources of momentum at both 3 and 6- month periods are approved and the risk factor in the 6 month period -as the source of momentum- has a significant relationship with momentum strategy return.   Manuscript profile

Open Access Article

23 - 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

24 - Evaluation of Behavioral Biases Affecting Investors’ Decision-Making by Fuzzy Analytic Hierarchy Process
Hossein Jamali Masoud Bakhtiari

The purpose of the present study is to evaluate behavioral biases affecting investors’ decision-making by fuzzy analytic hierarchy process. This research is a case study in terms of data collection and it is descriptive-explorative in methodology. Regarding purpos More

The purpose of the present study is to evaluate behavioral biases affecting investors’ decision-making by fuzzy analytic hierarchy process. This research is a case study in terms of data collection and it is descriptive-explorative in methodology. Regarding purpose, this study is classified in the group of applied research. The statistical population included all the active clients (around 300) of Yasouj stock exchange firm. The sample size was calculated to be 168 by Cochran formula. In this research, a snowball sampling method was used and data collection tools were Delphi and pairwise comparison questionnaires. For data analysis, multi-criteria decision-making techniques such as fuzzy-AHP were used. The research data were analyzed by Super Decision software. Prioritization of behavioral biases affecting investor’ decisions showed that overconfidence bias (0.235) is in the 1st level, aversion bias (0.168) is in the 2nd level, and mental accounting bias (0.149) is in the 3rd level. Moreover, availability bias (0.119) is in the 4th level, agency bias (0/108) is in the 5th level, regret bias (0.095) is in the 6th level, anchoring bias (0.073) is in the 7th level and finally, herding bias (0.054) is in the 8th level. Manuscript profile

Open Access Article

25 - The Model of Stock Return Fluctuations and Investors Involved in the Cognitive Biases of Ambiguity Avoidance, Familiarity, Self-documentation, and Procrastination
mahdi abbasi asl Mohammad Reza Rostami mehrzad minoii

10.30486/fbra.2023.1999589.1236

Contrary to the popular belief in modern financial theory that states decision makers behave completely rationally to maximize their profits, studies conducted in the field of behavioral finance show that the human decision-making process is not completely rational and More

Contrary to the popular belief in modern financial theory that states decision makers behave completely rationally to maximize their profits, studies conducted in the field of behavioral finance show that the human decision-making process is not completely rational and is not based on it. Most of the time, the financial-behavioral factors of the decision-making process examine the perceptions of investors and their reactions to different conditions of the financial market, and emphasize the influence of the personality, culture and judgment of investors based on investment decisions. Recognizing behavioral biases makes investors more aware of their decision-making process, and if faced with biases, they can react well and avoid deviations in decision-making. Therefore, the purpose of this research is to design a model of stock return fluctuations and investors affected by cognitive biases. The statistical population of this research is experts, managers, consultants and experts in financial affairs and the statistical sample includes 160 people.This research is practical in terms of purpose, and in terms of working methods, it is a type of survey research. The study period is in 2022 AD. For sampling, purposeful and snowball sampling methods were used, and with 30 semi-structured interviews with experts, the research reached theoretical saturation. The results obtained from the research showed that cognitive bias, ambiguity avoidance, familiarity, self-documentation, and tardiness have an effect on the volatility of companies' stock returns. The path coefficients (beta) for each bias have been calculated separately, which determines its effect on stock return fluctuations. Manuscript profile

Open Access Article

26 - Investors' Behavioral Biases in Tehran Stock Exchange by emphasizing the Role of Significant Weaknesses in Internal Control
Mariyeh Hasani Mansour Gharkaz Alireza Maetoofi Hosein Didehkhani

10.22034/amfa.2021.1921343.1552

Manuscript profile

Open Access Article

27 - 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

Manuscript profile

Open Access Article

28 - The Effect of Financial Literacy on Behavioral Biases of Overconfidence and Herding Behavior and Analysis of their Effect on Investors' Performance in Tehran Stock Exchange Using Structural Equation Modeling
Amin Roshangarzadeh mohsen dastgir rahman saedi

Behavioral psychologists believe that people consistently tend to act in erratic ways when making decisions about their investments. In the other words, these researchers believe that investors are actually irrational and show behavioral biases. The purpose of this arti More

Behavioral psychologists believe that people consistently tend to act in erratic ways when making decisions about their investments. In the other words, these researchers believe that investors are actually irrational and show behavioral biases. The purpose of this article is to investigate the effect of the dimensions and functions of financial literacy on the behavioral biases, including overconfidence bias and herding behavior bias, and to analyze their effect on each other and on the performance of investors in the Tehran Stock Exchange. For this purpose, a statistical sample was collected through a questionnaire from among 509 investors in the Tehran Stock Exchange. Also, PLS software was used to analyze the model. The results of this research showed that financial literacy has a significant effect on overconfidence behavioral biases and herding behavior among investors. Also, the results showed that the mentioned biases have a significant effect on the performance of investors. Manuscript profile

Open Access Article

29 - Investigating Managerial Myopia on Micromanagement and Analyzing the Mediating Role of Managers' Behavioral Tendencies (Case Study: Lorestan Province Government Organization)
Ali Shariatnejad Rezvan Mennati

10.30495/msds.2023.1980981.1125

The present study was conducted with the aim of investigating the effect of managerial myopia on the micromanagement, with the mediating role of behavioral biases. This research is based on practical purpose and descriptive-survey in terms of method. The statistical pop More

The present study was conducted with the aim of investigating the effect of managerial myopia on the micromanagement, with the mediating role of behavioral biases. This research is based on practical purpose and descriptive-survey in terms of method. The statistical population of the research is the government organizations of Lorestan province. Considering that the size of the statistical population is limited and specific, Cochran's sampling formula was used to determine the sample size, and at the 95% confidence level, the sample size was 384 people and were selected by available sampling method. In the current research, standard questionnaires were used to collect data, and their validity and reliability were confirmed by content validity method and Cronbach's alpha. Structural equation modeling and PLS software were used to test hypotheses and analyze data. The findings of the research show that managerial myopia has a positive and significant effect on the micromanagement of government organizations. Also, the findings show that managerial myopia has a positive and significant effect on the behavioral tendencies of government organizations. Manuscript profile

Open Access Article

30 - Behavioral factors affecting the decisions of foreign investors in Iran
Mozhgan Babaee Yadollah Rajaei Ashkan Rahimzadeh Mohammad Dalmanpour

10.30495/fed.2024.709351

Abstract One of the basic strategies in supporting Iranian labor and capital is to pay attention to foreign investment. Obviously, foreign investment can lead to the transfer of technology and technical knowledge, improve management and marketing methods, training and More

Abstract One of the basic strategies in supporting Iranian labor and capital is to pay attention to foreign investment. Obviously, foreign investment can lead to the transfer of technology and technical knowledge, improve management and marketing methods, training and education of human resources, easier access to export markets, and so on. so; The main purpose of this article was to investigate the behavioral factors affecting the decisions of foreign investors in Iran in both econometric and qualitative sections. In this article, data in the econometrics section were collected annually in the period of 1372 to 1400, and in the qualitative section, a questionnaire (researcher-made) field method was used to collect information and data. To determine the validity of the questionnaire and test, experts were consulted and the questionnaire in terms of validity (validity) was approved by obtaining the opinion of the respected supervisor. On the other hand, some questions lacking the necessary characteristics were removed and some ambiguous questions were corrected, which indicates the formal validity of those questions in the questionnaire. Then, in this study, content validity ratio was used to examine the validity of the questions. The results of the analysis based on the AR model indicate that an increase in foreign direct investment (FDI) in the previous period will increase foreign direct investment (FDI) by investors from the country, the reason for this should be sought in behavioral economics. The results obtained from the analysis of t-test show that the mean ‌behavioral economics variables (risk aversion, herding behavior, social security, conservative mental accounting (bias) and orientation) influence the decisions of foreign direct investors. Is transient and is statistically valid. Manuscript profile

Open Access Article

31 - The Effect of Financial Literacy on Behavioral Biases of Representiveness and Anchoring and Analyzing their Effect on the Performance of Investors in the Tehran Stock Exchange using Non-Parametric Models of Structural Equations
Amin Roshangarzadeh Mohsen Dastgir Rahman saedi

10.30495/faar.2023.1987286.3671

Most of the financial theories are based on the fact that people act rationally when faced with economic events. This hypothesis is the main basis of the efficient market hypothesis. However, behavioral researches ignore this basic hypothesis and shows that investors ha More

Most of the financial theories are based on the fact that people act rationally when faced with economic events. This hypothesis is the main basis of the efficient market hypothesis. However, behavioral researches ignore this basic hypothesis and shows that investors have behavioral biases when making decisions about investment issues. The present study tries to investigate the effect of financial literacy on the behavioral biases including representiveness and anchoring and their effect on the performance of investors. For this purpose, information related to 509 investors in Tehran Stock Exchange was collected through a questionnaire, and for analysis, after designing the conceptual model, non-parametric modeling of structural equations and PLS software were used. The results of this research showed that the increase in financial literacy reduces the behavioral biases of representiveness and anchoring among investors. Reducing the behavioral biases of representiveness and anchoring increases and improves the performance of investors in the Tehran Stock Exchange. On the other hand, the results of the research showed that representiveness behavioral bias has a significant effect on anchoring bias, which means that people who are subject to representiveness bias are also likely to be subject to anchoring bias. Manuscript profile

Open Access Article

32 - Modeling Investors' Behavior by Using Psychological Variables with Interpretive Structural Modeling Approach to Recognize Investment Decision Making Errors
shirvan barari Ghodratolah Taleb Nia Hamid reza Vakili fard Hossein Izadi

Interpretive structural modeling is one of the methods of system design, especially management and accounting systems. This technique starts by identifying the variables and then establishes the underlying relationships between the variables using the expertise and know More

Interpretive structural modeling is one of the methods of system design, especially management and accounting systems. This technique starts by identifying the variables and then establishes the underlying relationships between the variables using the expertise and knowledge of the experts and finally the multilevel structural model. In this study, using this approach, behavioral biases are structured to influence the decision making of real active investors in the stock market. For this purpose, expert experts in this field were used and 12 behavioral influences affecting investor behavior / decision making were identified and then coded using the matrix of initial access, their impact on investor behavior / decision model. Finally, they were leveled using the final matrix. The results of interpretive structural modeling showed that behavioral bias affecting investors' decision making was modeled at six levels, and imaginative power bias was at the highest level and more effective than other bias and late bias bias. Manuscript profile

Open Access Article

33 - The Effect of Overconfidence Managers on the Company's Risk Policies
Mansoureh HajiHashemi Vernosefaderani Mohammadreza Abdoli

In this research, we study the effects of overconfidence of managers (one of behavioral bias) and its impact on companies’ risk policy from operational, financial and market perspectives. Due to weakness of existing modeks in describing psychological variables inf More

In this research, we study the effects of overconfidence of managers (one of behavioral bias) and its impact on companies’ risk policy from operational, financial and market perspectives. Due to weakness of existing modeks in describing psychological variables influencing overconfidence, first a justified model of overconfidence has been presented. To estimate model's parameters, random effects statistical model has been used. In this regard, a total of 98 companies listed on the Tehran Stock Exchange have been studied. Years 1389 to 1394 (Hijri calendar) is the period of investigation. Since the t-test value of financial and business risk is greater than 1.965 and its significance level is also less than 0.5, linear correlation between the business and financial risk and overconfidence is approved. Also t-test value of market risk is lower than 1.965 and its significance level is higher than 0.5. So linear and significant relation between the market risk and manager overconfidence is rejected. As the final conclusion, results confirm significant relationships between overconfidence and financial risk management and also business risk management. In the meantime, a significant relationship between overconfidence and market risk has not been observed Manuscript profile

Open Access Article

34 - Misevaluation and Behavioral Biases in the Tehran stock exchange
Jamal Tavosi Jamal Tavosi Aminreza Kamalian

According to efficiency market hypothesis security prices respond quickly to new information and accurately reflect their fundamental values. More recent work indicates that market frictions and the psychological limitations of traders can cause asset prices to deviate More

According to efficiency market hypothesis security prices respond quickly to new information and accurately reflect their fundamental values. More recent work indicates that market frictions and the psychological limitations of traders can cause asset prices to deviate from their fundamental values for a considerable length of time. To investigate theoretical concepts, the composite error model and event study approach and for specification model Particular Swarm Optimization were used in this study. The results from Coelli one-sided likelihood ratio test in the event period shows that there are the biases in IKCO’s returns. This study develops an empirical method that tests for and estimates the degree of valuation bias. Being better able to detect valuation bias reveals profit opportunities and may improve the efficiency of financial markets if it sufficiently changes trader behavior. Manuscript profile

Open Access Article

35 - The Effect of Managers 'Behavioral Bias on Auditors' Strategies in the Face of Audit Risk
نازنین بشیری منش احسان مداح فهیمه آگاهی

10.30495/jdaa.2022.693172

Abstract In the face of audit risk and reducing litigation, auditors use a variety of strategies, such as increasing the level of auditing tests, increasing clauses, and changing clients. Given that managers are responsible for preparing the company's financial stateme More

Abstract In the face of audit risk and reducing litigation, auditors use a variety of strategies, such as increasing the level of auditing tests, increasing clauses, and changing clients. Given that managers are responsible for preparing the company's financial statements, the behavioral characteristics of managers affect decision-making and information presentation approaches. Therefore, the purpose of this study is to investigate the effect of managers 'bias on auditors' strategies in the face of audit risk. In this regard, a sample including 129 observations (year-company), the effect of managers' behavioral bias on remuneration, delay in submitting a report, commenting on the distortion clause and changing the auditor were investigated. Findings showed that managers 'focus on short-term goals, reputation and high percentage of managers' ownership leads to more effort and accuracy in the audit process and increase audit fees. The results also showed that managers' uncertainty and fortification have a negative and significant relationship with the delay of the audit report. This means that more confident managers are trying to pay less for auditing so that they can invest more in assets by reducing costs. According to the research findings, short-sightedness and narcissism of managers have a positive and significant relationship with condition clauses of audit importance. Managers who seek to gain benefits and career advancement or self-esteem and reputation gain by manipulating information increase the likelihood of receiving important condition clauses from the independent auditor. The findings also showed that the behavioral characteristics of managers have no effect on the change of auditor. Manuscript profile

Open Access Article

36 - Designing the behavioral bias pattern of investors with theme analysis and fuzzy interpretive-Delphi structural approach
Arezo Jabari Khouzani Allah Karam Salehi Ahmad, Kaab Omeir Soheila Zarinjooy Alvar

10.30495/afi.2023.1966142.1150

Purpose: The purpose of the current research is to design the behavioral bias pattern of investors with theme analysis and fuzzy interpretative-Delphi structural approach.Methodology: This research is one of the mixed researches with qualitative and quantitative approac More

Purpose: The purpose of the current research is to design the behavioral bias pattern of investors with theme analysis and fuzzy interpretative-Delphi structural approach.Methodology: This research is one of the mixed researches with qualitative and quantitative approach that was carried out in the period of 2020-2021. The statistical population of the research consists of managers and experts in the field of capital market and academic experts, and 16 of them were selected as sample members using the principle of theoretical adequacy and the snowball sampling method. In the qualitative part of the research, the method of theme analysis was used to identify the influencing factors on behavioral bias and to collect data, a semi-structured (in-depth) interview was used. Also, in the quantitative section, a questionnaire was used to collect information, and interpretive structural analysis and MICMAC analysis were used to determine the most effective components.Findings: The findings in the qualitative part using thematic analysis showed that the factors affecting the behavior biases of investors in Iran is consist of personality traits, perceptual and behavioral traps, customer journey map, emergence of collective mind, revelatory behavior theory, perspective theory, market theory and cognitive alignment.Originality / Value: The results of the research include the identification and prioritization of the most important factors influencing the behavior of investors, and finally, 8 main components and 33 determining themes were identified according to experts, which can be used to clarify the investors decisions, better analyze and improve the capital market efficiency. Manuscript profile

Open Access Article

37 - Risk perception, behavioral biases and investment decisions
Hanieh Jaberi Seyed Javad dellavari@razi.ac.ir Saman Mohamadi

Behavioral finance is one of the key topics in the field of finance and economics, which has a special attraction for scientific research. One of the determining factors of market movements is the sentiments of investors. In this context, it is important to study the ro More

Behavioral finance is one of the key topics in the field of finance and economics, which has a special attraction for scientific research. One of the determining factors of market movements is the sentiments of investors. In this context, it is important to study the role of behavioral biases in shaping investors' decisions and its impact on market efficiency. The current research seeks to find the effect of the most important behavioral biases, the effect of tendency and herd behavior, considering the factor of risk perception on investors' decisions. The data of this research was collected through a questionnaire that was distributed among 384 stock market investors, also partial least square (PLS) method was used to analyze the data. The results showed that the effect of desire, herd behavior and risk perception have a positive and significant effect on investment decisions. Also, there is a negative and significant relationship between the effect of willingness and risk perception, finally it was found that herd behavior also has a significant effect on risk perception. In general, these results emphasize that behavioral and cognitive factors have an important impact on investment decisions. Manuscript profile

Open Access Article

38 - Clarifying the effect of personality traits on the behavioral biases of financial professionals in Iran
حمید رستمی جاز morteza bavaghar leila raeisi

Psychological and Behavioral Factors Drive Financial Decisions Behavioral finance explains how psychological factors influence investors' perceptions, behavior, and decision-making, and subsequent market performance. Investor decision-making includes psychological, biol More

Psychological and Behavioral Factors Drive Financial Decisions Behavioral finance explains how psychological factors influence investors' perceptions, behavior, and decision-making, and subsequent market performance. Investor decision-making includes psychological, biological and sociological factors. Investors' demographics may influence their decision-making abilities, risk perception and attitude, and their personal characteristics. A person's personality plays an important role in making decisions that have different consequences for decision makers, especially financial professionals in Iran. Therefore, the present research tries to contribute to the perspective theory by examining how personality factors affect behavioral biases. The present research method is based on the purpose of applied research and based on the method of data collection, it is considered a descriptive method of the survey branch. Based on this, a field study was conducted by designing and distributing a questionnaire among 132 financial professionals in Tehran city, who were selected by simple random method. After collecting the data, they were analyzed using the structural equation modeling technique with the help of Laserl software. The results of the analysis showed that personality traits and its components (neuroticism, extroversion, openness, conscientiousness and adaptability) had a positive and significant effect on behavioral biases Manuscript profile

List of Articles behavioral bias

Sanad

Links

Related Centers

Technical Support

Official pages