Providing a Model for Assessing the Relationship between Behavioral Biases and Financial Managers Decisions in Iran’s Stock Exchange Market Based on Grounded Theory

In this paper a model provided for assess the relationship between behavioral biases and financial managers' decisions in Iran's stock exchange market for the first time. For this purpose required data gathered from previous studies and interview with stock market experts (15 experts which selected by snowball sampling). For designing the mentioned model, the grounded theory and for testing its validity the partial least square (PLS) model were applied. Results of open coding indicated that there are 21 behavioral biases between financial managers in Iran stock market and 60 basic concepts describe the relationship between behavioral biases and financial managers' decisions. Results on core coding show that 20 basic concepts under three topics: individual properties of financial managers, situation of financial managers decisions, and company's circumstances, describe the casual conditions of relationship between behavioral biases and financial managers decisions. In addition, 11 basic concepts under the country's macro conditions comprise the background conditions of relationship between behavioral biases and financial managers' decisions. On the other hand, 21 basic concepts under the financial managers behavioral biases, describe the interfere conditions of relationship between behavioral biases and financial managers decisions. Also, 8 basic concepts comprise the outcomes of relationship between behavioral biases and financial managers' decisions. Finally using selective coding, the paradigm model of relationship between behavioral biases and financial managers' decisions was designed. Results of crediting indicated that designed model has the adequate credit.