Identifying and categorizing of effective factors on individual investors behavior in Tehran’s stock market (Behavioral finance perspective)

Document Type: Original Article


1 PhD Student in Industrial Management, Science and research branch, Islamic Azad University, Tehran , Iran

2 Department of Industrial Management, Science and research branch, Islamic Azad University, Tehran, Iran (Corresponding Author)

3 Department of Industrial Management, Science and research branch, Islamic Azad University, Tehran, Iran


Investors behavior is one of the most important discussion of the financial science in the financial market. Individual investors consider various factors when they buy and sell securities and show different behavior (Rational, Herding, Reaction and Heuristic). The main purpose of this research is to identify and categorize factors which impact individual investors behavior that are known as behavioral biases in behavioral finance literature. This research is practical as objective and implies a descriptive-survey research method. At the first phase of the research for the purpose of identifying those factors that impact the investors behavior, 30 behavioral finance experts participated. In the second phase of the research (examining the proposed model), statistical population consists of all investors in Tehran stock market of which 384 samples were selected randomly.. Questionnaires were made by researchers. Cronbach’s alpha Coefficient is 0.79 and 0.82 Respectively that indicates suitable reliability. The SPSS software and Smartpls.2 software was used for analyzing the data. The result of statistical analysis revealed that, financial ratios, status market, market total index trend, and rumors, etc were identified as influential factors. Finally,  factors was classified in four group(Company Internal, Transactional information, Environmental and Psychological). Research proposal model was confirmed by confirmatory factor analysis


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