Antecedents And Consequences Of Investors’ Financial Behavior In Tehran Stock Exchange

Abstract

The purpose of this research was to investigate the antecedents and consequences of the financial behavior of investors in Tehran stock exchange. This research is applied in terms of purpose and descriptive-correlational in nature. The research population consisted of all investors of the stock exchange in Mashhad, and due to the uncertainty of population size, the minimum sample size was decided to be 384. A non-random sampling method was used. The data collection instrument was a standard questionnaire in 4 parts that examined financial literacy, thinking style, self-control, risk-taking propensity and financial behaviors measured along with 34 items. The validity of the instrument was checked and confirmed using face validity, construct validity, divergent and convergent validity. Also, the reliability of the questionnaire was checked and confirmed using Cronbach's alpha coefficient and composite reliability. Confirmatory factor analysis and hypothesis testing were done in SmartPLS3. The results showed that investors’ financial literacy, rational-analytical thinking style and self-control in the stock market significantly and positively affected their financial behavior. In other words, the higher the level of investors’ financial literacy and rational-analytical thinking style, and the higher their self-control in the stock market, the better their financial behavior. Moreover, improving the investors’ financial behavior can increase their risk-taking propensity.