Assessing the Impact of Managers' Agency Motivation on Investment Portfolio Selection in the Framework of prospect Theory

Agency theory mainly refers to the conflict of interests between management and ownership that managers may behave differently in investing despite contract incentives. Accordingly, in the present article, while examining the behavioral financial concepts, the behavioral portfolio theory is explained and then the effect of managers' motivation on the selection of investment portfolio is evaluated in the framework of prospect theory. In the present study, ten-year data on stock index yield and cash return Bahadar has been used from the beginning of 1389 to the end of 1398 and while separating test data into two parts of test and evaluation data based on quarterly returns of the first seven years, the proposed behavioral portfolio based on motivation and vision theory and calculation of returns and risk for 81 The proposed portfolio for the next three years is examined. The statistical test of the research hypotheses at an error level of 5% indicates that although the yield of the resulting portfolio was not significantly different between the classical and behavioral models, the risk of the behavioral financial portfolio was less than the classical portfolio