Comparative Study of Effects of Investor's Perception of Financial Information Transparency on Investor Behhavior in Tehran & Taiwan Stock Market

The investigation into the financial crises in stock markets worldwide reveals that lack of financial information transparency has been leading reasons of the incidents, that have caused investors significantly lose their confidence regarding secure investment in stock markets. The purpose of this comparative study is examining the role of investor perception of financial information transparency dimensions in explaining investor behavior in the Tehran stock market based on similar research model in Taiwan stock market and compare the findings of this study with the findings of the research that carried out in the Taiwan stock market.This study utilized a correlation type descriptive-analytic method approach of the kind of correlation matrix analysis, and for collecting data it used a quantitative method approach on a survey instrument. The study also qualitatively and through content analysis techniques compared the content of findings of researches in the Iran stock markets with the similar one in Taiwan.Findings indicated that improved financial information transparency can lead to win investor confidence and increase investor activity in the Iran stock market. In addition, comparing of the content of findings of this study with the similar one in Taiwan stock market made it clear that Taiwanese investors’ behaviour was more under influence of their attitude towards financial information transparency dimensions than Iranian investors’ behaviour. In other words, there are other factors that affect on investor behaviour in the Iran stock market in addition to financial information transparency. These factors were not taken into account in this research model.