Financial Knowledge of Securities Analysis: 2 (30)

Open Access Article

1 - Role of psychological factors and awareness on the intention to invest With Emphasis on the mediate role of perceived risk of Customers of Investment Services
Amir Reza Konjkave Monfared1 Saeid Fathi Bahram Ranjbarian

Perception of risk is of paramount importance in decision-making process as it can alter rational decision-making pertaining to product and service choice. Indeed, Perceived risk is regarded as one of the most crucial factors for understanding consumer behavior. So, it More

Perception of risk is of paramount importance in decision-making process as it can alter rational decision-making pertaining to product and service choice. Indeed, Perceived risk is regarded as one of the most crucial factors for understanding consumer behavior. So, it is necessary developing a perceived risk model for natural customers of investment services market. The purpose of this study is to determine the antecedences and consequences of perceived investment risk. This study is a development-applied and descriptive survey. Statistical populations are customers of Yazd brokerage. In this research, questionnaires and interviews have been used for data collection. Also, structural equation modeling and path analysis have been used for data analyzing. The results show that risk propensity, trust, self-efficiency and awareness have a significant effect on investors' perceived risk. In this context, results show that knowledge and awareness of investors has the most effect on their perceived risk. In addition to, perceived risk has a significant effect attitude and intention to invest. Manuscript profile

Open Access Article

2 - To Compare the Explanatory Power of the Five-Factor Fama French Model with Carhart and q-Factor Models: Evidences from Tehran Stock Exchange
Shahram babalooyan Mehrdokht mozaffari

One of the most important issues in financial markets is the stock return prediction. The aim of this study to compare the explanatory power of five-factor Fama French model (2015) with four-factor Carhart model (1997) and q-factor HXZ model (2014) in relation to stock More

One of the most important issues in financial markets is the stock return prediction. The aim of this study to compare the explanatory power of five-factor Fama French model (2015) with four-factor Carhart model (1997) and q-factor HXZ model (2014) in relation to stock returns.We find that the Five-Factor Fama French Model outperforms the Carhart and q-factor models over the period April 2010 - March 2015 in Tehran stock Exchange.In contrast to the study of Fama and French (2015) in U.S. stock market, we find that value factor (HML) is not redundant with adding CMA and RMW. The result also shows that among beta, size, value, Momentum, profitability and investment variables, only two factors (momentum and investment) don’t effect on stock return. Manuscript profile

Open Access Article

3 - Portfolio selection with Lower tail dependence and Extreme value theory
Said Falahpur Samine Feyzolah

Portfolio selection is an important problem in area of finance. Researchers have always tried to work with a variety of methods and strategies to achieve this important issue.In this research has been trying to present a new approach for portfolio selection with use of More

Portfolio selection is an important problem in area of finance. Researchers have always tried to work with a variety of methods and strategies to achieve this important issue.In this research has been trying to present a new approach for portfolio selection with use of lower tail dependence and Extreme value theory.We show theoretically that lower tail dependence (χ), a measure of the probability that a portfolio will suffer large losses given that the market does, contains important information for risk-averse investors. We then estimate χ for a sample of stocks and show that it differs systematically from other risk measures including variance, semi-variance, skewness, kurtosis, beta, and coskewness. In out-of-sample tests, portfolios constructed to have low values of χ outperform the market index, and portfolios with high values of χ. Our results indicate that χ is conceptually important for risk-averse investors, differs substantially from other risk measures, and provides useful information for portfolio selection. Manuscript profile

Open Access Article

4 - The low information processing power of stockholders and its role in mispricing of firms’ shares
Abbas Aflatooni

The published information on an entity is generally voluminous, and stockholders are not capable to analyze all available information. In this research that is done on a sample of 193 firms listed in Tehran Stock Exchange from 2002 to 2013, using the rational pricing ap More

The published information on an entity is generally voluminous, and stockholders are not capable to analyze all available information. In this research that is done on a sample of 193 firms listed in Tehran Stock Exchange from 2002 to 2013, using the rational pricing approach; I investigates the effect of low processing power of stockholders in analyzing the information about accruals and net operating assets, on their estimation about persistence of firms' future earnings.The research results show that, accruals and net operating assets are negatively associated to firms' future stock return; and investing in shares of firms with voluminous accruals and net operating assets, lead to the lower future stock returns for investors. Nonetheless, because of stockholders' inability to processing the information related to accruals and net operating assets, they overestimate the future persistence of accruals and net operating assets (and finally, accounting earnings) and cause to mispricing and irrational pricing of shares in stock market Manuscript profile

Open Access Article

5 - Assay the Effect of revenue Diversification on performance in Accepted Banks in Tehran Stock Exchange
seyed kazem Ebrahimi Mehri Shahriyari Soheyla Mehman-navazan

To create diversified revenue strategies for the purpose of value and performance improvement has become vital due to the globalization of the banking industry.This article investigates the effect of revenue Diversification on Performance in Accepted Banks in Tehran Sto More

To create diversified revenue strategies for the purpose of value and performance improvement has become vital due to the globalization of the banking industry.This article investigates the effect of revenue Diversification on Performance in Accepted Banks in Tehran Stock Exchange from 1388 until the end of 1392. The population of the study are the accepted banks in Tehran Stock Exchange.Variables needed to use the software Excel calculated and then through multiple regressions, using Eviews software and Fisher F test research hypotheses were testedWith this study, it was found that revenue Diversification and ROA have a positive impact and cost- to- income have a negative impact on bank performance. The results show that equity and bank size have no effect on the Bank's Performance. Manuscript profile

Open Access Article

6 - Determination of Interest Rate in Iran by using Fuzzy logic Method
Alireze Kazerooni Pooyan Kiyani Zana Mozaffari

Interest rate is one of the most important monetary policy instrument in an economy. The changes in interest rate leads to changes in other key economic variables like cost of production, Consequently changes in output and price level. However, like the other developing More

Interest rate is one of the most important monetary policy instrument in an economy. The changes in interest rate leads to changes in other key economic variables like cost of production, Consequently changes in output and price level. However, like the other developing countries, lack of the advanced financial markets and governmental determination of interest rate , the market interest rate can't be observered in Iran. For this purpose, the main objective of this study is to estimate market interest rate index by using information on proxy variables such as inflation rate, rate of return on housing and amount of liquidity in economy during 1981-2012 by using fuzzy logic method. The empirical result indicates that interest rate has shown a lot of fluctuations over time. The maximum (78/7) and minimum (22/4) interest rate index has been in years 1995 and 1985 respectively. Manuscript profile

Open Access Article

7 - Examining the Effect of Corporate Governance Indicators on Credit Ratings with Regard to the EMS model (Case study: Tehran Stock Exchange)
Hoosein Vazifehdust1 Maysam Ahmadvand M. Javad Sadehvand

This study reviews the impact of corporate governance indicators on credit ratings in a sample of firms listed on Tehran stock exchange. Regarding the absence of international credit rating agencies in Iran’s financial market, this paper firstly calculated credit More

This study reviews the impact of corporate governance indicators on credit ratings in a sample of firms listed on Tehran stock exchange. Regarding the absence of international credit rating agencies in Iran’s financial market, this paper firstly calculated credit ratings of selected firms using the emerging market score (EMS) model. The next step was dividing corporate governance indicators into four categories: shareholders’ and stakeholders’ rights, board of directors and its committees, auditing, and transparency and public disclosure. Based on each of these categories, a representative index, and by aggregating four representative indexes, a composite corporate governance index was built. Then, the relationship between these indexes and credit ratings was examined.Results suggest that only governance indicators related to shareholders’ and stakeholders’ rightsare significantly positively correlated with credit ratings. However, combining these indicators with other governance indicators (that is, indicators related to board of directors and its committees, auditing, and transparency and public disclosure), did not have any significant influence on credit ratings of Tehran stock exchange listed firms. Manuscript profile

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