The effect of liquidity, volume, and market performance on collective behavior

Part of human behavior is the result of interaction with society. A considerable number of human emotions, states, and moods are the result of interaction with the environment and society, referred to as social temperament. The purpose of this study is to investigate the effect of liquidity, volume, and market performance on collective behavior. To this aim, according to the type of data and available analysis methods, the time series data analysis method was used. Since this quantitative study was conducted with the aim of testing hypotheses, it can be deemed to be practical in terms of its purpose. Moreover, due to the fact that the dependent variable changes were predicted according to the independent variables changes, this research was of the correlation-regression analysis type. In all statistical techniques, Avios 12 and Excel software were used. The statistical population included the Tehran Stock Exchange. The time frame of the research included six consecutive years from 2016 to 2021, and the investigation of research hypotheses was done using the real data of these years. To test the hypotheses and determine the relationship between independent and dependent variables, econometric models were used and the relevant hypotheses were investigated using the time series multivariate regression method. The results revealed that the performance of the stock market had a positive and significant effect on the collective behavior of investors, whereas the liquidity and volume of stock market transactions did not have a significant effect on the collective behavior of investors.