Empirical Analysis of the Financial Behavior of Investors with Brand Approach (Case Study: Tehran Stock Exchange)

Asgarnezhad Nouri Bagher (), Motamedi Samira () and Soltani Milad ()
Additional contact information
Asgarnezhad Nouri Bagher: Department of Management and Economy, Faculty of Literature and Humanities, University of Mohaghegh Ardabili, Iran (Islamic Republic of)
Motamedi Samira: Department of Management and Economy, Faculty of Literature and Humanities, University of Mohaghegh Ardabili, Iran (Islamic Republic of)
Soltani Milad: Faculty of Business Administration, European University of Cyprus, Cyprus

Scientific Annals of Economics and Business, 2017, vol. 64, issue 1, 97-121

Abstract: Behavioral science in the field of finance and investment is among new topics raised in recent years. The relationship between financial sciences and other fields of social sciences such as financial psychology has caused researchers to do many researches regarding the behavior of investors in the financial markets and their reactions to different situations. Based on the theories of financial behavior, shareholders' decision to buy and sell stocks is under the influence of internal and external psychological factors. Through designing and experimental testing of the model of investors' financial behavior in the Tehran Stock Exchange with an emphasis on brand, this study was an attempt to investigate the influence of these factors. To this end, financial, psychological and social factors were considered as the most important external factors influencing the behavior of investors and, considering the mediating role of brand awareness, their impact on perceived risk and perceived return as well as investment intention was tested. The research population consisted of all individual investors in the Tehran Stock Exchange. In order to determine the sample size, considering unlimited population, Cochran formula was used and hence the sample size was determined to be 145. For data collection, standard questionnaire was used. Confirmatory factor analysis was used to test the reliability of the questionnaire and the research hypotheses were tested using path analysis. The results showed that psychological factors have a positive impact on perceived risk and returns. Financial factors had a positive impact on perceived risk but no impact on perceived return. The impact of social factors on perceived risk and perceived return was not confirmed. Moreover, the results showed that brand awareness has a moderating role in the relationship between social factors and perceived risk and return. However, its moderating role was not confirmed in the relationship between the psychological and financial factors and perceived risk and return. Perceived risk had a positive effect on attitude toward the brand. However, the impact of perceived return on attitude toward the brand was not significant. Finally, the attitude toward the brand had a positive effect on shareholders' investment intention.

Keywords: behavioral finance; perceived return; perceived risk; brand awareness; Tehran stock exchange (search for similar items in EconPapers)
JEL-codes: G02 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/saeb-2017-0007 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:aicuec:v:64:y:2017:i:1:p:97-121:n:7

DOI: 10.1515/saeb-2017-0007

Access Statistics for this article

Scientific Annals of Economics and Business is currently edited by Ovidiu Stoica

More articles in Scientific Annals of Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().