Journal of Investment Knowledge: 5 (24)

Open Access Article

1 - 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

2 - Identifying and ranking the risk factors affecting the leasing industry case study of AHP in the company mellat leasing
Ali Sheidaei

Nowadays, risk management is a practiced system and process whose main aim is to improve the quality of decisions in all levels of the firms in order to increase the wealth of shareholders. Until the 50's, the perception to the risk was totally restricted, unidimensiona More

Nowadays, risk management is a practiced system and process whose main aim is to improve the quality of decisions in all levels of the firms in order to increase the wealth of shareholders. Until the 50's, the perception to the risk was totally restricted, unidimensional and just based on quality. So far, a number of researches have been done regarding the risk of leasing industry; however, there has been little if any precise rating or identification of these risks in this field . In this study, we intend to identify different kinds of risks involved in the leasing industry through survey research by asking the experts for their opinions through questionnaires and then determine the correlation between them, and eventually, rank them through the AHP method.  This work is an applied research and its methodology is descriptive, in the form of convey researches. In this study, we determine effective factors on risks of leasing industry. The reliability of the questionnaire has been calculated by Cronbach's alpha and its validity has been assessed by experts. SPSS software has also been used to analyze the data. Based on the findings, all the abovementioned factors in the hypothesis, such as operational risks, liquidity risk, interest rate risk, recognition risk, legal risks and portfolio risk are the most important risks in the leasing industry and Mellat Leasing Corporation. There is also a significant correlation between all the abovementioned risks and their components. Manuscript profile

Open Access Article

3 - The Relationship between Net Share Value and Trade Value of Companies Listed On Tehran Stock Exchange in Securities Market Boom and Bust Cycles
Elmira Ghadri Soumeh Farhad Hanifi Hamidreza Kordloei

The main aim of the present study is to explore the relationship between net share value and trade value of companies listed on Tehran Stock Exchange in securities market boom and bust cycles. In this study, net share value is considered as independent variable and boom More

The main aim of the present study is to explore the relationship between net share value and trade value of companies listed on Tehran Stock Exchange in securities market boom and bust cycles. In this study, net share value is considered as independent variable and boom and bust cycles as moderating variable, in order to study their effect on the variables of trade value of companies listed on Tehran Stock Exchange. Research population in this study includes all companies listed on Tehran Stock Exchange during the period from 2008 to 2013 and finally, research sample volume is consisted of 112 companies based on systematic elimination method. Results obtained from regression analysis of firm data at 95% confidence level with the use of panel data with fixed effects indicated that there is a direct relationship between net share value and trade value of companies listed on Tehran Stock Exchange during boom and bust cycles. Also, it was indicated that the severity of the relationship between net share value and trade value of companies has a significant difference in boom and bust cycles, in a way that the severity of the relationship between net share value and trade value of companies in boom cycles is larger than in bust cycles. Manuscript profile

Open Access Article

4 - Comprehensive Model of Credit Risk Management in the Banking System of Iran
Ali Saqafi Jamal Damghanyan Sajjad Sayyah Hosein Khozuei

Credit risk is traditionally defined as the risk that an obligor will not be able to honor its (often long dated) obligations, and has mostly been applied to the fixed income world and more specifically to bank lending. Credit risk is known as the oldest, largest and mo More

Credit risk is traditionally defined as the risk that an obligor will not be able to honor its (often long dated) obligations, and has mostly been applied to the fixed income world and more specifically to bank lending. Credit risk is known as the oldest, largest and most important bank's risk. Therefore an integrated credit risk management at all stages of Before lending, While lending,after lending Is critical for banks. This study aims to achieve a coherent pattern in the area of credit risk management. For this purpose,by Using research method of graunded theory and coding behind the different stages of the three-part comprehensive model of credit risk management framework includes policies, methodologies and infrastructure were found Manuscript profile

Open Access Article

5 - The Testosterone Level of the CEO and Corporate Risk Taking
Mehdi Safari Griyly Yasser Rezaei Pitenoei Mohammad Norouzi

Testosterone is one of the most important masculine hormones, playing a major role in shaping men’s face and their behavioral characteristics including risk taking. Measuring the testosterone level of the CEOs, recent studies have revealed a significant relationsh More

Testosterone is one of the most important masculine hormones, playing a major role in shaping men’s face and their behavioral characteristics including risk taking. Measuring the testosterone level of the CEOs, recent studies have revealed a significant relationship between biological characteristics of the CEOs and corporate economic decisions. Therefore, the present study aims to investigate the impact of the facial width to height ratio (fWHR) of the CEO as one of the factors determining the testosterone level on risk-taking companies. To do so, a sample of 49 firms listed in Tehran Stock Exchange during the years 2014-2016 were selected and then tested using multivariate regression model based on panel data technique. The findings indicate that the high testosterone level in CEOs tends to result in corporate risk taking. The findings of current study not only fill existing gaps in the field, but also contribute to decision-making practices in Stock Exchange.       Manuscript profile

Open Access Article

6 - Testing portfolio strategies based on fundamental, technical and heuristically with behavioral objects and characteristics of Tehran stoke market investors
Esfandyar Shahmansuri

Objectives and strategies have a significant relation with investors’ performance. In this research, we study and classified strategies and objects of individual investors in Tehran stock exchange. First investor’s objectives divided to 5 groups like financi More

Objectives and strategies have a significant relation with investors’ performance. In this research, we study and classified strategies and objects of individual investors in Tehran stock exchange. First investor’s objectives divided to 5 groups like financial capital growth, Building financial buffer, saving for retirement, hobby and speculation. Then their strategies classified in 3 conventional strategies: fundamental, technical and heuristically. Finally according to behavioral characteristics like risk taking, aspiration levels and over confidence we tested relation among these objectives and strategies with their investors’ performance. Testing behavioral portfolio based on investment objectives and investing strategies for simulation of 120 strategies during 1393-1389 shows that fundamental, technical and heuristically strategies with high risk portfolios have made higher return toward average Stock index. Results show that behavioral characteristic of investor’s has a significant effect on objectives and investing strategies and their performance. There is a relation between aspiration level and risk taking with investor’s objectives, especially there is a strong significant relationship for investors whose object is makes capital grow. Tests show that investors with technical strategy, has higher aspiration and risk taking level but the average yield of this approach is lower than average yield of fundamental strategy. These results are opposite of Shefrin and Hafman(2011) results. Investors, who use fundamental strategy in financial market of Iran, pursued Building financial buffer and capital growth.   Manuscript profile

Open Access Article

7 - Examining the Effect of Shocks in Monetary and Fiscal Policy on Value Added of Industry and Mining Sector in Iran
Alireza Baradaran Gholamreza Zomorodian

Industry is one of the important parts of the countrys economic that attention to it is the goals of developed and developing countries. In Iran, according to the Statistics, Industries and Mines sector has been allocated about 25 percent of GDP to itself. Despite this More

Industry is one of the important parts of the countrys economic that attention to it is the goals of developed and developing countries. In Iran, according to the Statistics, Industries and Mines sector has been allocated about 25 percent of GDP to itself. Despite this contribution, the industry during the implementation of development programs and policies of adjustment and stabilization has been effected from macro-economic policies, especially monetary and fiscal policies. With this approach, the present study has been investigated the effect of shocks in monetary and fiscal policy on value added of industry and mining sector in Iran during 1991-2013. To reach this goal, firstly the monetary and fiscal policy shocks was modeled in framework of Hodrick and Prescott filter. Then using the ARDL model, the effects of monetary and fiscal policy shocks on value added of industry and mining sector along with variables such as net capital stock of industries and mines, labor employed in this sector and the costs of education were examined. The results of this study showed that a positive shock of monetary and fiscal policy has a direct impact on the value added of industry sector; But the negative shock of monetary and fiscal policy, has a negative effect on the value added of the industry. The results also revealed that the capital stock and labor employed in industry and mining sector have a positive effect on the value added of this sector. Accordingly, it can be said that 10 percent increase in the capital stock and labor, increase the value-added of industry sector 7.3 and 5.6 percent in the long term, respectively.  Finally, the results indicated that per capita government spending on education has also a positive impact on the value added of industry sector; So that 10 percent increase in per capita government spending, increase the value-added of industry sector 3.4 percent in the long term. Manuscript profile

Open Access Article

8 - Examining the Effects of Healthy Banking Indicators in Determining the Asset-Liability Management (ALM) Strategy by Focusing on Capital Adequacy Ratio (CAR) Index
Mohammad Hossein Setayesh Mohammad Hossein Fatheh

The aim of the present study is to examine the impact of healthy banking indicators in determining the asset-liability management (ALM) strategy. In order to achieve this objective, 20 bank branches with specific considerations were studied between 2009 and 2014. Pearso More

The aim of the present study is to examine the impact of healthy banking indicators in determining the asset-liability management (ALM) strategy. In order to achieve this objective, 20 bank branches with specific considerations were studied between 2009 and 2014. Pearson correlation and multivariate regression model were used to analyze the data. The bank size (bank balance and trade volumes) was considered as the asset/liability index, and the indicators of a healthy banking system such as asset quality, management (efficiency), profitability and liquidity were considered as independent variables. The results of this study suggest that indicators of capital adequacy, return on assets and return on capital have a positive and significant impact on asset and liability management. Management (efficiency) and liquidity indexes showed no significant effects. Manuscript profile

Open Access Article

9 - The Relation Between one Economic Events with the Concepts of Changing Regime about Returns, Risk and Liquidity in Stock Market
Hassan Ghalibafasl Naser Elahi Masoomeh Torkaman Ahmadi Yadolah Dadgar

The stock market is one of the most important parts of the capital market. There are defined concepts in this market that are more important than the other ones. Meanwhile, it can be mention to liquidity, risk and return. Given the important three variables has tried to More

The stock market is one of the most important parts of the capital market. There are defined concepts in this market that are more important than the other ones. Meanwhile, it can be mention to liquidity, risk and return. Given the important three variables has tried to model know as GARCH regime and Markov regime switching, the relationship between these concepts with the concepts of changing the regime by important economic events in country's history such as article 44 of the constitution is examined. According to the results of three- regime GARCH model, the most important  Article 44 events in the changes of stock return's volatility process regimes has been identified, due to the behavior of institutional investors in low-volatility regimes in comparison with high-volatility liquidity.  Manuscript profile

Open Access Article

10 - A Model for Explaining Working Capital Management: A Structural Equilibrium Modeling Approach
Syed Ali Mahdian Iraj Noravesh

Working capital is a huge part of the company's capital and its management is of great importance. Because current assets and liabilities include items that directly contribute to the operating cycle of the company. Therefore, based on this argument, the present study a More

Working capital is a huge part of the company's capital and its management is of great importance. Because current assets and liabilities include items that directly contribute to the operating cycle of the company. Therefore, based on this argument, the present study aims to provide a model explanation for working capital with financial performance and profitability of the company with the approach of structural equation modeling. For this purpose, a sample of 159 companies accepted in Tehran Stock Exchange during the years 2010-2010 was selected. Working capital management (hidden variable) by observable variables (average payback period, average period of inventory turnover, average payment period, cash cycle, cash holdings, current ratio, and cash cycle turnover efficiency) and performance The financial and profitability of the company was also measured based on the rate of return on assets and the rate of return on equity. Following the assurance of the appropriateness of fitting the measurement and structural patterns of research, the results indicate that the management of working capital reduces financial performance. Also, the results of structural equations of this study showed that the management of working capital in accordance with the conservative policy of the manager leads to reduced profitability of the company Manuscript profile

Open Access Article

11 - Investigation of Relationship between Corporate Governance and Cash Flow with Firms’ Investment Efficiency
Samaneh sadat Salavati Abdorreza Asadi

Investment in different activities has been considered by the company as of ways corporate development and avoid recession. The aim of this study is investigate the relationship between free cash flow and corporate governance with their efficiency investments. Therefore More

Investment in different activities has been considered by the company as of ways corporate development and avoid recession. The aim of this study is investigate the relationship between free cash flow and corporate governance with their efficiency investments. Therefore, free cash flow and corporate governance are known as the independent variable that mean of corporate governance is required of members, ownership concentration and the proportion of institutional ownership. The data of 131 companies listed in Tehran Stock Exchange during the period 2010-2014 analysis by using panel data and regression multivariate was in Eviews software. A model was developed in order to test the hypothesis, according to the hypotheses. This model evaluated relationship between the excess cash and corporate governance by investment efficiency. The results of the test model showed that free cash flow did not effect on the investment efficiency but corporate governance has a significant impact on investment efficiency.   Manuscript profile

Open Access Article

12 - The Relationship between Population Parameters with Herding Behavior of Investors in the Tehran Stock Exchange
Ali Rahmani Fatemeh Morshidi

Probability of the effects of demographical factors such as ethnicity, geographical area and age range on the behaviors of investors in the stock market has not been studied as much as those of the financial and economic variables. This study aims at investigating the r More

Probability of the effects of demographical factors such as ethnicity, geographical area and age range on the behaviors of investors in the stock market has not been studied as much as those of the financial and economic variables. This study aims at investigating the relationship between ethnicity, geographical area, and age range of investors and their Herd behaviors. Chung et al's formula was used for recognizing Herd behaviors. Based on their model, when the result of deviation of stock return from market return decreases; a Herd behavior appears. Research sample involved 388718 investors from Tehran Stock Exchange (TSE). The study was conducted during 2012- 2015. The obtained results revealed a significant relationship between ethnicity (except Arab ethnicity), geographical area (except the southern area), and age range; and Herd behaviors of investors Manuscript profile

Open Access Article

13 - Ranking of mutual funds in Iran based on favorable and unfavorable risk criteria
Mohammad Reza Mehrabanpour Mohammad Safaei Roya Samimi Nezhad Reza Noohi

Due to the fact that the rating of mutual funds creates an unbearable impact on the public interest in order to request the issuance or revocation of investment units, the proper assessment of the relevant ratings is very important. One of the factors that should be con More

Due to the fact that the rating of mutual funds creates an unbearable impact on the public interest in order to request the issuance or revocation of investment units, the proper assessment of the relevant ratings is very important. One of the factors that should be considered in ranking is attention to different risk assessment criteria. In this study, we used information from 112 investment funds in the period from April 2012 to March 2013 based on ten criteria including Sharp criterion criteria, Trainer criteria, Jensen alpha standard, M2 benchmark, AR criterion, Moderator trainer standard, Jsen Alfa standard adjustment The Omega benchmark, the Sortino benchmark and the UPR, the investment fund rankings have been made. Over the period, the Iranian capital market has experienced a sharp increase in both growth and decline and, as a result, The basis for the desired and undesirable risk criteria is the ability of a fund to flourish It also showed up during the recession. Attention to the favorable and undesirable risk over this period greatly increases the ability to rely on the results of the research and can add to the research's sustainability. Manuscript profile

Open Access Article

14 - Survey the Effects of Micro Finance Credits Fund on the Rural Women’s Managerial Empowerment (Case Study: Alamout Region)
Mohammad Mahdi Mozaffari Mohammad Sadegh Ziaee

The main objective of this study was to survey the effects of micro finance credits fund on the rural women’s managerial empowerment in the Alamout region. The present study in terms of purpose is applied and in terms of data analysis is descriptive- correlational More

The main objective of this study was to survey the effects of micro finance credits fund on the rural women’s managerial empowerment in the Alamout region. The present study in terms of purpose is applied and in terms of data analysis is descriptive- correlational. The statistical population consists of rural women member of micro finance credits fund in the Alamout region (83 members) that 68 members of them were selected as the sample size using simple random sampling method and Cochran formula. Questionnaire validity using panel of experts and its reliability using Cronbach's alpha coefficient were determined. This coefficient for questionnaire was estimated 0.82 which shows its reliability. In order to study causal relationships between affecting variables on rural women’s managerial empowerment members of micro finance credits fund from Pearson and Spearman correlation coefficients and Kruskal- Wallis, Mann- Whitney and Multiple Regression tests were used.The results of Kruskal-Wallis test showed that there is a significant difference in the level of one percent between respondents’ perspective than cognition of the village situation, entrepreneurial spirit and the financial independence, the spirit of self-esteem and self-confidence and promoting of new jobs with rural women’s managerial empowerment in Alamout region. The results of Mann-Whitney test showed that head of household or not influence on rural women’s managerial empowerment in the Alamout region. The results of multiple regression analysis also showed that the significant variables in this study about 57 percent of the dependent variable changes "rural women’s managerial empowerment through micro financial credit in Alamout region" to explain. Manuscript profile

Open Access Article

15 - Expression and design a model to forecast the exchange rate shocks and stress testing of the currency in Iran
Abdollah Rajabi Khanghah Hashem Nikomaram Mehdi Taghavi Fereydoon Rahnamay Roodposhti Mirfiyaz Fallah Shams

This paper attempts to Expression  and design a model to forecast  the exchange rate shocks and stress testing of the currency in Iran . In other  words, what factors influence the currency shock and is there the shock predictability in the currency marke More

This paper attempts to Expression  and design a model to forecast  the exchange rate shocks and stress testing of the currency in Iran . In other  words, what factors influence the currency shock and is there the shock predictability in the currency market. On the other hand, are there in critical condition (shock) the ability to predict currency risk through stress tests? The research method is descriptive-analytic and data collection library using econometric regression model using econometric software Eviews is carried out. The research is method in this study (time series modeling) . The results suggest that based on estimations made clear  that the exchange rate shock  predictable feature of the model is capable MGARCH. . In other words, using multivariate GARCH model and Conditional value at risk predictability of the exchange rate shock and influence the variable of  Macroeconomic variables has been clarified. Finally, using the Back Testing the validity and effectiveness model was estimated and validation tests with stress tests to estimate the shock has been in critical condition. Manuscript profile

Open Access Article

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

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

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

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