Factors Affecting the Behavior of Investors Regarding Phenomenographical Approach

Decisions of investors in the financial markets is influenced by many factors, many of which are not justified in making rational decisions. Factors such as values, beliefs and cultural assumptions cause bias in the decision-making process that affect the behavior and decisions of the investors. The focus of this article is to provide a pattern of behavior and decision-making factors for investors with an emphasis on cultural factors. Basic assumptions are elucidated from literature review and relevant researches. The mixed method research was selected and operated in order to progress the research at the qualitative and quantitative parts. At the qualitative part, semi structured in-depth interviews were conducted with behavioral decision making experts considerating phenomenography strategy. Data from the interviews were analyzed using content analysis method according to which the questionnaire was designed. At this stage, the survey strategy was conducted, and then 500 questionnaires were distributed as available sampling method and 316 completed questionnaires were collected. The data were analyzed using SPSS and Amos Graphics softwares using structural equation modeling. The results indicate that fators such as value system, locus of control, uncertainty acceptance, habit to investment and time horizon are the main components of cultural category which besides personality, cognitive and emotional biases form investor’s decision making that lead to herding behavior. Despite the past researches confirmed the effect of time, data analysis showed that khorasan razavi investor’s behavioral model is not affected by the time factor.