Investigating the Impact of Mood on the Behavioral Finance Trap of Investors in Tehran Stock Exchange

This study investigates the impact of morale on the behavioral finance traps of Tehran Stock Exchange investors considering the importance of financial decisions in the lives of individuals. Behavioral finance traps are behavioral biases or biases that impede good and optimal decision making. In behavioral finance, the behavioral characteristics that influence individuals' decision making process are studied. These features are called behavioral biases. Mental states (moods) are more based on the emotions of the individual, that is, the individual feels and expresses a state within each external action. The statistical population of this research includes all investors of Tehran Stock Exchange. Structural equation modeling with partial least squares approach was used to test the research hypotheses. The results showed that investors' behavioral financial traps are influenced by both high and low moods. Also, behavioral finance traps are most affected by high morale.