Modeling the financial behavior of momentum and random investors in crisis situations: Qualitative analysis based on grounded theory

The main purpose of this study is to provide a model to explain the financial behavior of momentum and random investors. The research was conducted qualitatively with grounded theory technique. Data were collected through semi-structured interviews. The statistical population of the current research is active investors in the stock exchange in the period from 1399 to 1401. In this regard, 16 interviews with momentum investors and 8 interviews with random investors were conducted according to the research topic. Then, based on the systematic approach of Strauss and Corbin's theories, in three main steps of open coding, axial coding and selective coding, the financial behavior model of momentum and random investors was presented. The results of coding interviews with momentum investors have shown that the behavior of this group of investors has often been based on risk-return analysis and fundamental and technical analysis. Financial advisors are sometimes consulted, focusing on capital management and portfolio diversity. Although they sometimes engage in emotional behaviors, these behaviors are not predominant and they mostly try to behave rationally. While random investors, on the other hand, benefit less from these analyzes and consider only financial knowledge and investment literacy important. This group is more prone to emotional behaviors, especially mass behaviors.