The role of institutional ownership moderators on the relationship between earnings smoothing and investor financial behavior

Behavioral taxation covers a wide range of aspects of psychology and social sciences that contradict the efficient market hypothesis. In fact, behavioral finance is the study of how people interpret and act on information to make informed investment decisions. In other words, it seeks to influence the psychological processes in the decision-making process. Behavioral tax intention is to analyze and study comprehensive market phenomena based on the psychological mechanisms of investment behaviors. Now this study was to investigate the effect of profit smoothing on investors' financial behavior? What is the impact of institutional ownership on the relationship between earnings smoothing and investor financial behavior? For this purpose, 140 companies for the period 1392 to 1397 were surveyed. The results of the present study showed that profit smoothing has a positive effect on investors' financial behavior. The results of the present study also showed that institutional ownership has an inverse effect on the positive relationship between earnings smoothing and financial behavior of investors.