فصلنامه دانش حسابداری
پیاپی 55 (زمستان 1402)

The purpose of this research is to expand the theoretical foundations of behavioral research in the field of accounting ethics and investigate the effect of the situational variable of perceived moral pressure on accountants' moral beliefs and also the moderating role of personal variables (power distance orientation, ego strength, and locus of control) in the relationship between perceived moral pressure and ethical beliefs of accountants. Also, in this research, the effect of personal variables (power distance orientation, ego strength, and locus of control) on the moral beliefs of accountants was investigated. This research is categorized as a behavioral study. The present research is applied research in terms of its purpose. It is descriptive in terms of method and quantitative in data type. Also, based on the data collection method, this research is considered a survey type. In this research, library texts were used to explain the theoretical foundations and collect the background of the research. A questionnaire tool was used to collect the required data. Questionnaires were available to the statistical community through available random sampling. The statistical population of this research is people working in the accounting profession, including financial managers, accounting supervisors, and accounting experts of private companies and companies admitted to the Tehran Stock Exchange in 2021. The research data was collected randomly in 201 questionnaires and analyzed using the structural equation model with the partial least square (PLS) approach. This study investigated the ethical attitudes and beliefs of accountants in the workplace using the interactive and direct effect of the individual variables of power distance orientation, ego strength and locus of control, and the situational variable of perceived moral pressure. The findings show that the perceived moral pressure has a negative and significant effect on the ethical beliefs of accountants. This means that when accountants perceive moral pressure as threatening, they change their attitude and moral beliefs. Therefore, perceived moral pressure can play an important negative role in creating the moral belief orientation of people and be the foundation for unethical behavior in them. This finding was obtained regarding the moderating role of power distance orientation in the relationship between perceived moral pressure and ethical beliefs of accountants. When accountants perceive moral pressure as a threatening factor, the personal characteristic of power distance orientation can affect the ethical beliefs of accountants in response to the situation. Therefore, power distance orientation moderates the relationship between perceived ethical pressure and accountants' ethical beliefs. However, the findings showed that the personal variables of ego strength and locus of control do not moderate the relationship between perceived moral pressure and accountants' moral beliefs. Also, the findings showed that the personal variables of power distance orientation, ego strength, and locus of control significantly affect accountants' moral beliefs. This means that people's personalities affect accountants' moral beliefs. According to the results obtained from this study, it is concluded that the ethical beliefs of accountants are strongly influenced by individual variables (power distance orientation, ego strength, and locus of control) and situational variables (perceived moral pressure). The pressures on accountants threaten their moral beliefs and cause unethical behavior in them because the ethical beliefs of accountants put them on the right path and make accountants behave ethically in performing their duties, which will result in higher ethical commitment of accountants in performing their respective duties in the organization. Considering the influence of the individual variables of power distance orientation, ego strength and locus of control and the situational variable of perceived moral pressure in the formation of accountants' moral beliefs, paying attention to the factors affecting the accountants' moral beliefs and controlling and preventing it's weakening factors, It leads to strengthening the ethics of accountants. Values and beliefs and, as a result, behavioral norms are strengthened in the organization. In general, the results obtained from this study can be useful information for accounting professionals, academics, researchers, and legislators. These findings help accounting professionals understand the effects of misaccepting pressure on ethical beliefs and its consequences and maintain their adherence to ethical principles to maintain their commitment to the profession. Explaining the effective behavioral factors in forming accountants' moral beliefs can encourage academics to revise course units and increase students' moral awareness after entering the professional environment. Therefore, both educational institutions and organizations play an essential role in creating growth opportunities and a suitable environment for the ethical growth of accountants. Organizations should configure their training programs to include topics that promote moral values, especially from the perspective of personal characteristics that lead to strong moral beliefs. Accounting educators, professional organizations, and planners should create strategies to develop and ensure ethical practices in organizations through training programs and seminars focusing on the moral development of individuals.

The increase in global competition and the need for diverse skills and innovation in doing things are the driving forces for prioritizing teamwork in organizations. Implementing and using work teams has become one of the most common changes in today's complex and dynamic environments. In such a way, dealing with complex problems requires the collective development of creative and innovative solutions and the creation of teamwork relationships. In the auditing profession, the importance of teamwork has been demonstrated. In this connection, using transformational leadership by managers and supervisors can have many benefits, including coordination between members, reducing emotional conflict, reducing conflict regarding allocating resources and responsibilities, and increasing collective commitment. Therefore, The quality of team interactions of independent auditors (including coordination, cohesion and involvement of team members). This research is a survey-descriptive type of research. In terms of the goal, it is also considered applied research in such a way that the researcher seeks to reach information that can solve a problem by using it. In the discussion of the scope of the research, there are three types of thematic, temporal and spatial domains. The subject area of this research is the effect of transformational leadership on the quality of team interactions with independent auditors. On the other hand, this research was conducted in 2022 since it seeks to explain the influence of the leadership behaviors of managers and supervisors among all the employees of auditing institutions that are members of the Certified Public Accountants Society of Iran and their data was collected through a questionnaire and analyzed using structural equation techniques. The results of the descriptive statistics of the research variables show that 1. Managers and supervisors almost implement transformational leadership in their institutions because, on the 5-point Likert scale, the variable of transformational, servant and moral leadership of the manager and supervisor is higher than the average of "3" (respectively, "3.442" and "3.509") so that the T statistic for all variables has a significant difference at the 95% level from the average. 2. The T statistic of team coordination and cohesion has a significant difference at the 95% level with the average of "3" (respectively, 8.25 and 7.38); therefore, there is relatively good coordination and cohesion among the members of the audit team. 3. The T-statistic of team engagement has a significant difference at the 95% level with the mean of "3" (-9.52), which indicates a relatively low engagement among audit team members. 4. Average audit team members, tenure and age of auditors are approximately 5, 5 and 34 years respectively. It should be noted that the measurement accuracy increases when the data's standard deviation is less. In this connection, according to the standard deviation obtained in table number 2, the standard deviation of all research variables is close to 1, indicating their measurement's good accuracy. Finally, in the range of 5 Likert options, the minimum and maximum limits of the respondents to all research variables were 1 and 5, respectively. Since auditors do not work separately, it is essential to know the people, tasks and environment of auditors because of their effect on their performance. As the importance of teamwork has been proven in the auditing profession, auditing firms are organizations with professional services that build their activities as a team. This is because the complex tasks involved in audit work require using different competencies and perspectives of team members. Therefore, considering the importance of teamwork, the effect of transformational leadership on the quality of team interactions was investigated in this research, the results are described below. The results of the research show that managers and supervisors who use the suggestions of team members, dedicate time to guide and train subordinates, emphasize the importance of foresight and achieve goals, and influence the emotional, psychological and behavioral states of team members, can cause coordination, reducing possible misunderstandings and improving commitment among your team members. The current research was done to help institutions, managers, supervisors and legislative bodies in the auditing profession. In this regard, according to the results of the test of research models that indicated the effect of transformational leadership on the quality of team interactions, including cohesion, involvement and coordination of team members, the use of transformational leadership by managers and supervisors can bring many benefits, including coordination between members, Reducing the emotional conflict, reducing the conflict regarding the allocation of resources and responsibilities, will lead to an increase in the sense of collective commitment. Therefore, it is suggested that managers and supervisors use transformational leadership mechanisms that include: allocating time to guide and train subordinates, using the suggestions of team members, emphasizing the importance of foresight and achieving goals, and influencing the mental, emotional and behavioral states of team members be used in order to create effective communication with team members and influence their behavior. Finally, it should be noted that this research faced the following limitations.2. There is a possibility of potential bias of managers and supervisors in connection with self-reporting.Because part of the information was collected through cyberspace, the researcher did not directly monitor the correctness of the answers provided by the sample subjects.

Objective:

 The pricing and valuation of initial public offerings (IPOs) are the subject of extensive literature in finance, primarily focusing on well-documented pricing anomalies such as IPO underpricing and significantly abnormal post-issuance returns. The use of peer company information to value IPOs has received attention due to their signaling role. Among the things that can be compared in the field of peer companies is the quality of their accounting information and financial reporting. Due to the lack of accounting information related to IPOs, practitioners rely significantly on comparable Peer Accounting Information when attempting IPO Valuation. Firms desiring to obtain capital through an IPO depend on more accounting information than their own when transitioning from a relatively opaque to a relatively transparent information environment, such as the accounting information of their priced peers. According to these cases, this research aims to present the model of the effect of the degree of group similarity, the quality of accounting information and the quality of financial reporting on the valuation of the initial public offering of shares using the algorithm of artificial neural networks.

This research is practical in terms of purpose and data collection method; it is ex-post facto research in accounting proof research. The statistical population of this research includes 92 companies listed on the Tehran Stock Exchange between 2012 and 2020, which uses the multiple regression method to test the hypotheses. The degree of similarity of the quality of accounting information of the supplier company with the peer group has been calculated and tested separately using three indicators of abnormal accruals, profit predictability and profit stability. Also, considering that artificial network patterns can be used to predict the valuation of an initial public offering of stocks and probably have different powers, this research compares the power of three algorithms (firefly algorithm, machine regression algorithm, decision, and tree algorithm).

The comparable companies' approach to pricing IPOs depends largely on the availability of accounting information from peer companies already priced in the market. However, to be most effective, peer accounting information should be useful in making decisions about how to use the accounting information of peer companies. The results showed that the valuation of shares in an initial public offering is possible based on the degree of similarity of the companies in the group and the quality of the accounting information. Stock valuation in initial public offerings based on profit and sales approaches differs in terms of the similarity of group companies and the quality of the company's accounting information. Group companies and the quality of accounting information aren’t associated with incorrect pricing (overvaluation and undervaluation) in initial public offerings. The results of neural networks also indicated that the firefly algorithm has a higher power to predict the initial public offering valuation than the machine regression algorithm; the firefly algorithm had a higher power to predict the initial public offering valuation than the tree algorithm. The decision tree algorithm is more likely to predict the valuation of the initial public offering of stocks than the support vector machine regression algorithm.

in the comparison between valuation theory and practice (use of information of peer companies), the second view is more effective, and the accuracy of information of peer companies is a key component of pre-publication estimates of the accuracy of information of IPO companies, and the information set of an IPO, it is not limited to its own accounting information, but also includes the information of its peers. Given that companies often decide to offer their initial shares when they think they can maximize their equity earnings (such as when they feel their stock is overvalued or during periods of booming stock markets and heightened investor sentiment), the results of this research can be used by potential investors to reduce the effect of underwriters' incorrect valuation and to monitor them, especially in the emotional stock market; Therefore, it is suggested that buyers of shares of companies that are listed on the stock market for the first time should consider the accounting information and quality of financial reporting of similar and peer companies, especially the quality of accruals and the predictability and stability of their profits; because it contains information about the future price estimation of initial supply companies. Underwriters and initial price estimators are also suggested to consider the quality of accounting and financial reporting of their peers in estimating the initial price of initial public offering companies. In the end, due to the higher power of the Firefly algorithm to predict the valuation of the initial public offering of stocks compared to the vector machine regression algorithm and the decision tree, it is suggested to use these algorithms for valuation due to the lower error.

Since the beginning, accounting has had no other goal than to raise the values of accountability to the stakeholders, and the philosophy of this profession is considered to be merely improving the level of information transparency for users. This knowledge in the public sector has a more sensitive mission to respect the rights of others due to the greater awareness of the existence of stakeholders, so that with the beginning of the second half of the 20th century onwards, especially in advanced countries, accounting has accepted more responsibilities for a more comprehensive response to the stakeholders. In other words, the experts in this field, especially with the change of the social system structures of the countries, believe that the role of accounting affects the more effective interaction of the governments with the beneficiaries. Because accountability in this profession has evolved strategically and operationally due to the change in social expectations and the influence of economic/political, cultural and international conditions, these changes require the development of accounting to gain more legitimacy. It is essential in the public sector. Therefore, in this situation, the responsibility of accountability has forced the governments to explain their actions more clearly to the citizens and expose the results of the approved programs to evaluate the judgment of the independent monitoring institutions and the people to promote public legitimacy.

This study is in the applied research category regarding the results. It is considered exploratory in terms of purpose and mixed in the type of data collection. Therefore, a range of related processes and complementary analyses of the qualitative and quantitative sectors were used to determine the most likely scenarios for implementing accrual accounting and determine the most stable dimension of legitimacy in the public sector. In this study, first through content screening, an effort was made to identify similar research on the subject of accrual accounting challenges with the participation of 14 experts in the accounting field. Then, through the analysis of linkage matrices and mix-and-match, the most challenging factors in the implementation of accrual accounting were determined by conducting interviews to determine the basic themes of these factors. In the quantitative part, with the participation of 50 managers and financial experts of the General Department of the Ministry of Economy and Finance of Mazandaran province, who had the necessary experience and knowledge regarding the implementation of accrual accounting, an effort was made to determine the status of each of the solutions through a mutual evaluation matrix. The solution to the challenges of implementing accrual accounting is determined based on the separation of scenarios so that finally, based on the matrix of mathematical functions, the determination of the most stable legitimacy of the public sector based on the development of the implementation of accrual accounting in the future is determined.

The results of the study showed that the most effective matrix of accrual accounting in the General Department of the Ministry of Economy and Finance of Mazandaran province to improve the legitimacy of the public sector is the same mathematical function matrix or accrual accounting matrix as a terrarium, which can be the most desirable dimension of legitimacy, i.e. practical legitimacy create in the public sector.

In this research, the qualitative part used the theme analysis process due to the lack of integration related to identifying accrual accounting implementation challenges. According to this process, firstly, to determine the overarching themes by selecting 12 primary research, a total of 9 researches related to the present topic were selected, and during the linking matrix process, the influence and dependence of each theme were determined and then by placing each of the identified themes in According to the two factors of power of influence and power of dependency, the base of the Mi'kmaq matrix should be selected the most effective drivers of the challenge of implementing accrual accounting in the public sector. The result obtained in this study shows that the public sector needs to give priority to the development of its technological capacities to face the challenges in the implementation of accrual accounting to improve the level of holistic functions of accrual accounting in recording financial events so that it can achieve practical legitimacy by speeding up the transparency of the financial functions of the devices and institutions under the General Administration of the Ministry of Economy and Finance of Mazandaran province.

According to the agency theory, managers have many incentives to have their audit reports presented with a favorable opinion; they are looking for auditors who will behave according to their wishes and have less professional skepticism about financial statements. Expectations can lead to buying the auditor's opinion and increase the possibility of distortion and fraud in financial statements (Fakhari and Amiri, 2019). In response to the increasing complexity, the auditing profession expects to minimize material misstatements in financial statements by exercising professional skepticism among auditors (Nolder and Kados, 2018). Hurtt (2010) defines professional skepticism as an attitude of constant pessimism and the habit of delaying an opinion until one obtains sufficient information and evidence and believes that when the auditor has doubts about the reliability of the information provided by the owner, has doubts and wants to look for more signs. Therefore, he can search for more information and conduct additional investigations to create a sufficient basis for better judgments. Professional doubt is a behavioral issue, and from a theoretical point of view, it explains what is known as the underlying principle in the fundamental principles of auditing and assurance (Hosseini et al., 2014). Religiosity and religious beliefs are among the most important behavioral factors that can influence the behavior of accountants and auditors, and professional doubt is no exception to this rule (Khoshbakht et al., 2022). According to the theory of McDaniel and Burnett (1990), religiosity means belief in God, along with the commitment to follow the principles defined by God. The goal of teaching religion and performing rites and rituals is to create moral transformation in human beings. According to the theory of religious ethics, religion is connected with ethics, and religion is the source of ethics; therefore, religiosity can drive moral behavior (Mahdavi et al., 2022). On the other hand, ethics in auditing causes the professional doubt of the auditor to increase because he reasons carefully in the auditing process and has a deep view of and even beyond those issues. In other words, ethics, which results from religion, will increase the auditor's exploratory search to obtain the required evidence and improve professional doubt (Birjandi et al., 2018). Among the behavioral factors that can affect the prevention of fraudulent financial reporting by accountants and the evaluation of auditors is the level of belief and adherence of accountants and auditors to their moral and religious principles (Khoshbakht et al., 2022). Therefore, it can be expected that religious beliefs significantly affect the relationship between professional doubt and distortion risk assessment. Based on this, the present study aims to investigate the effect of professional doubt on the auditors' assessment of the risk of material misstatement, emphasizing the moderating role of religious beliefs with an Islamic approach. The current research is practical in terms of its purpose and quasi-experimental and survey in terms of research nature. The time domain of the research is 2022. This research uses a scenario-based questionnaire to test the research hypotheses. The standard questionnaire is taken from Hosseini et al.'s research (2017). In order to control the effects caused by severe economic fluctuations, the audit period of the scenario of 2015 has been considered, and to compare the results of the research with previous research such as Hossein et al. has been used in the Tehran Stock Exchange so that the numbers and figures of the scenario in terms of salable product, receivables collection period, etc. are consistent with Iran's economic environment. The second part raised questionnaires related to professional doubt and religiosity. To measure the variable of professional doubt, the 30-question questionnaire of Hurtt (2010) was used as a five-point Likert scale, which includes six dimensions of questioning mind, pause in judgment, knowledge search, interpersonal understanding, self-confidence and self-assurance. To measure the variable of religiosity according to the standard questionnaire of Khodayari Fard et al. (2009) and the localized model of Allport and Ross (Shojaizand, 2010), in the form of a 25-question questionnaire including 13 items for faith, 6 items for piety and 6 items for certainty was used. Finally, the participant's demographic information was asked in the third part of the questionnaire. The statistical population of this research is auditors working in the auditing profession, and using Cochran's formula, 384 people were selected as the research sample. In order to collect the required sample, 460 questionnaires were distributed in person and electronically. Among them, 384 complete questionnaires were extracted without defects, and finally, the data were collected using the structural equation method and SmartPL software. S was analyzed. The variables used in this research are divided into three categories: independent, dependent and moderator. The independent variable of the research is professional doubt, the dependent variable of the research is the auditors' assessment of the risk of significant distortion, and the variables of religiosity with three degrees of faith, piety and certainty are the moderating variables. The results of structural equation model analysis showed that the significance value of all hypotheses is greater than 1/96, which is significant at the 95% confidence level. Therefore, the hypotheses of the research are confirmed. The standardized path coefficient of the assumptions is also greater than 0/4, which shows the factors' positive effect on assessing the risk of significant distortion. The coefficients of the path with a value of 0/83 showed that among religious beliefs, faith has the greatest effect on professional doubt and, finally, on the evaluation of the risk of significant distortion, which is completely consistent with the verses and traditions in the field of faith, because the first order of religiousness is faith that the rest of the levels appear after it. The influence coefficient of certainty and piety, with values of 0/69 and 0/65, respectively, show the second and third rank for these variables in influencing the evaluation of the risk of significant distortion. This change in ranking for certainty and piety in the research findings is different from religious sources because certainty is the opposite of doubt, which will have a significant effect on the professional doubt of auditors, and from this aspect, it is more important than piety in auditing. The first hypothesis examined the moderating effect of religious beliefs on the relationship between professional skepticism and assessing the risk of significant distortion. The results showed that religious beliefs positively affect the relationship between professional skepticism and material misstatement risk assessment, and the higher the auditors' commitment to religious beliefs, the higher the quality of material misstatement risk assessment. The result of the first hypothesis is consistent with the research results of Kargarkamvar et al. (2023), Adil et al. (2022) and Mahdavi et al. (2022). It confirms the research of Peransanti and Yulianto. Next, religious beliefs were examined in the three sections of faith, piety and certainty in the form of the second to fourth hypotheses. The results of the considered hypotheses were confirmed. By winning first place for faith in religious beliefs, it showed faith in God, faith in resurrection and auditing even the smallest actions and behaviors, and faith in the punishment with a positive effect on professional doubt, accuracy and sensitivity of auditors in evaluation. It raises the risk of material misstatement. Certainty with the second rank is effective in this connection. Certainty is the opposite of skepticism, and auditors with faith will be cautious in applying judgment in doubtful situations so that they do not reach the level of certainty through scientific and objective examination. Therefore, auditors with a higher degree of certainty in religious beliefs will be more successful in assessing the risk of material misstatement due to higher professional skepticism. Finally, with the third rank, piety positively affected the relationship between professional doubt and assessing the risk of significant distortion. Pious auditors by avoiding things contaminated with sin, fraud and suspicion and insisting on the truth in speech, observing trust, and adhering to covenants, the result of which, according to the verses of the Holy Quran, is solving problems and getting rid of worldly doubts; They will exercise higher professional skepticism that results in a more material misstatement risk assessment. The results of the second to fourth hypotheses are consistent with the religious teachings according to the verses and traditions and align with the research results of Atrat Dost et al. (2021) and Pourmehdi et al. (2021).

Accounting is a long-standing knowledge in the humanities, which emerged according to social expectations and interactions and gradually became an important part of the functions of financial calculations in societies. The foundation of this knowledge, which is based on a proof and objectivist approach, was gradually completed with the development of behavioral and financial sciences, and today the emergence of concepts such as behavioral accounting has given a new nature to this field. Although it must be accepted that this profession depends to a great extent on operational techniques and methods, it cannot be hidden that nowadays, accounting science is considered beyond mere calculation functions to a function to improve the level of knowledge and response to balance corporate management decisions. The basic concept of governance pillars a wide range, as a network of defined relationships, which is not only a company and its owners but also all stakeholders, including employees, customers, and people; the most important pillar of the management system is the managers, whose decisions can affect the stakeholders in a wide range. Today, the accounting field is moving beyond classical approaches and mere positivism in the direction of behaviorism to be considered a proactive response to social expectations. Therefore, today, modern approaches in accounting, such as aural accounting, are a stimulus to create balance in representation and prevent managers' opportunism due to personality disorders such as hysterics or narcissism. This research aims to develop Aural Accounting enhancement stimuli as a reaction to CEO hysterical disorder.

This study is placed in the category of development research, which, while creating a theoretical framework about the dimensions of the research, seeks to expand it in the functions of capital market companies. Therefore, through content screening, it is first tried to identify the dimensions of the research based on the two axes "X" and "Y" in the analysis of the next step, i.e. the Rough Sets, and through fuzzy analysis, necessary action is taken regarding the ability to generalize the dimensions of the research to capital market companies. Finally, in the quantitative section, the implementation of the rough process is carried out in several steps to determine the most stimulating dimension of aural accounting enhancement as a basis for controlling the CEO's hysterical personality disorder.

This study, based on the nature of the Rough collection analysis, which was the aim of this research, should have determined the dimensions of the research based on the two axes "X" and "Y" so that the analysis reference and the law in the Rough analysis are the basis for answering the research question. Therefore, in the first step, through a systematic screening, it was decided to determine the components of auditory accounting enhancement as the reference of Rough analysis and the axes of the CEO's hysterical personality disorder as the themes or rules of Rough analysis. The first two research questions were an attempt to identify the dimensions of the research for which there was no coherent and integrated framework from past research, and this research sought to identify its dimensions. Based on this, 6 components were identified as drivers of auditory accounting enhancement and 5 themes were identified as axes of the CEO's hysterical personality disorder. Then, to determine the reliability of the identified dimensions, fuzzy Delphi analysis was used to determine whether the dimensions can be generalized to the level of capital market companies based on the difference between the average of the first and second rounds of the distribution of the fuzzy questionnaire. The results in this section also confirm the identified dimensions. Finally, to answer the third question, through the Rough total, a comparison was made between row "i" and column "j" of components and themes to determine, firstly, which is the most influential theme and secondly, which dimension of auditory accounting stimulus can be proportional to the CEO's hysterical disorder. The qualitative results indicate the component's existence as the drivers of aural accounting enhancement and 5 themes as the axes of the CEO's hysterical personality disorder. In the quantitative part, it was also determined that the most crucial axis of the CEO's hysterical personality disorder in the face of the beneficiaries was the conditioning of the beneficiaries. On the other hand, it was found that the most crucial driving force behind aural accounting, which can be a reaction to such a disruption in the CEO's functions, is the development of financial information systems (FIS).

The findings of the study show that the development of financial information systems as a driver of auditory accounting will increase the level of understanding of the expectations and needs of stakeholders in social contexts, and by speeding up the environmental assessment, the accounting unit will use the necessary technical and behavioral processes to provide an appropriate response to their expectations and desires.

Investigation and behavioral finance analysis of investors and market participants in the 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 a mentally wide variety of people (investors) that has this is a subjective understanding is vital for transparency and a better understanding of the market. Since the 1980s, logical investment hypotheses and efficient markets have been ruined by appearing in behavioural finance literature. The mentioned literature states that some biases cause decision-making problems while trading shares. Tversky and Kahneman, in the 70s, in a series of articles, achieved the development of applications of psychological knowledge in finance and economy. This research gradually became known as behavioral finance in the 90s as a field of financial matters. In the behavioural finance paradigm, the prevalent assumption of viewing a human being as a rational entity who is always satisfied in optimizing his/ her benefits is questionable. Behavioral finance asserts that the attitude of investors to the capital market is a function of investment psychology, ideas and position about risk. Research shows that many micro and macro factors that are measurable and non-measurable affect the behavior of investors. The advocates of Behavioral finance knowledge strongly believe that awareness of psycho-cognitive" tendencies in the investment realm is essential and requires serious improvement in expanding the scope of studies. However, academicians and professionals who are advocates of classic financial schools do not believe in examining the behavioral aspects of humans and their impact on financial decisions as an independent field of study. Yet, both quantitative and qualitative advancement of experimental studies within this field indicates the importance of research on behaviors in financial markets. Financial literacy is essential in understanding investors’ behavior in advanced and emerging stock markets. While previous studies have shown a positive association between improved financial literacy levels and the quality and performance of investors’ decisions, the dynamics of this process have not been adequately examined. This study aims to identify influential factors in individual investor's decision-making and designing a model in the capital market. Due to the necessity of the subject and the lack of a comprehensive model that shows the factors influencing investors' decision-making in the Iran capital market, the present study developed this model.  The methodology of this research is a development, exploratory and qualitative research in terms of result, objective and method, respectively. The research method is based on the strategy of the data foundation theory method with the coding method and paradigm model of Strauss and Corbin. The statistical population of the present study includes university experts and experts in the capital market who have continued to collect information through interviews until saturation; also, a sample of the snowball method has been used based on the opinions of 50 experts and the Strauss and Corbin system approach. The data collection tool was a structured interview, and the focus group continued with the subject matter experts until the theoretical level was reached. Also, using open coding, axial coding and selective coding, the concepts, categories, specifications and dimensions of the categories that were classified into contextual factors, causal conditions, strategies, intervening conditions, and outcomes were extracted and presented and Approved by the expert opinion of the expert.  This study provides new insight into the factors affecting decision-making. The research data were analyzed using open, axial and selective coding methods, which is a component of the grounded theory approach with the aid of Maxqda 2018 software; finally, the integrated model of developing investor decision-making is provided, which resulted in the identification of 2 categories of causal conditions, 6 categories of phenomena/context, 9 categories of intervening conditions, 7 categories of action strategies and 7 categories of consequences related to the main phenomenon of research.  Based on the research results, individual investors can improve the quality of their decision-making and make more effective investment decisions by implementing the presented strategies and identifying and reducing their mental biases. These strategies include capital market knowledge, consulting with the expert capital market, extensive training in stock exchange concepts, employing specialized and experienced brokers in the capital market, reforming the structural system of the stock exchange, transparency of financial information, expansion of the secondary market, security of investment, Providing the ground for the investor not to leave the capital market.