Open AccessBEHAVIORAL FINANCE- EVIDENCE FROM TEHRAN STOCK EXCHANGE
Author(s) -
Mojtaba Mortezaee,
Davoud Sanji,
Majid Govahi
Publication year - 2016
Publication title -
international journal of research - granthaalayah
Language(s) - English
Resource type - Journals
eISSN - 2394-3629
pISSN - 2350-0530
DOI - 10.29121/granthaalayah.v4.i12.2016.2395
Subject(s) - finance , lisrel , stock exchange , capital market , economics , financial market , financial modeling , financial econometrics , stock market , financial economics , portfolio , social studies of finance , indirect finance , structural equation modeling , paleontology , statistics , mathematics , horse , biology
A capital market is a vast and controversial issue in financial matters and especially behavioural finance. Indeed, behavioural finance is aim to survived the influence of the psychological variables on financial markets transformation. It should be noted that financial investors may have different level of rational behaviour, which leads to different kinds of effects, which can elaborate market inconsistency. Classical finance assumes the investors as rational peoples who try to select the most lucrative and efficient portfolio considering expected financial risk. Behavioural finance model mainly focus on psychological parameters. Tehran Stock Exchange (TSE) is affected by many financial and economic variables. Investor in this financial market is affected by different data. Present study is aim to examine psychological variables beside political, economic and capital market features factors. Research data collects in 2015 and analysis by LISREL software. The results reveal that political, economic and psychological parameters respectively are the most important variables which affect the investor decision making behaviour. The internal financial reports and market return are less effective factor in their financial decision behavior.