Investment Decisions Based on Disposition Effect, Mass Behavior, and Blue Chip Stocks in Tehran Capital Market

Message:
Article Type:
Research/Original Article (بدون رتبه معتبر)
Abstract:
Purpose

The purpose of this study is to investigate investment decisions based on behavioral biases, considering the disposition effect, mass behavior, and blue-chip stocks in the Tehran capital market.

Method

In this research, to collect data, an online questionnaire was distributed among 420 individual investors, of which 395 were received and analyzed. The data were analyzed using structural equation modeling (SEM) with Smart PLS software.

Findings

The results show that the disposition effect, mass behavior, and blue-chip stocks have a positive and significant effect on risk perception. Risk perception, in turn, has a positive and significant impact on investors' decisions. The results also indicate that desire and mass behavior positively and significantly influence investors' decisions.

Conclusion

This research challenges the concepts of market efficiency and rational decision-making by highlighting the factors that affect financial bias in investment decision-making. This suggests that financial markets may not always function efficiently, and mispricing in markets where inefficiencies are evident can lead to economic distortions and affect resource allocation, potentially resulting in a market bubble.

Language:
Persian
Published:
Journal of ethics and behavior studies in accounting and auditing, Volume:4 Issue: 2, 2024
Pages:
115 to 140
https://www.magiran.com/p2772052  
سامانه نویسندگان
  • Kaviani، Meysam
    Corresponding Author (1)
    Kaviani, Meysam
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