Investment Judgment and Decision-Making: A Trade-Off between Psychology and Economics

Pourheidari, Omid; Alvari Chenari, Hamid

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year 16, Issue 64 (2024)

fa 2024, 16(64): 92-114

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Investment Judgment and Decision-Making: A Trade-Off between Psychology and Economics

Omid Pourheidari¹

, Hamid Alvari Chenari ^*¹

1- Faculty of Management and Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

Abstract: (52 Views)

This study examines the impact of psychological and economic factors on individual investment judgment and decision in the Tehran Stock Exchange market. The motivation of this study is to provide insight to the stakeholders of investment in the Tehran Stock Exchange market by establishing and examining the relationship between economic factors and psychological factors affecting investment decisions. This research was a survey research of questionnaire data collection tool. The data of this study was collected through 104 questionnaires distributed among the investors of Tehran Stock Exchange in the first half of 1403 and analyzed with SPSS and SMART PLS software. The findings show that among the variables related to economic factors, the profitability variable and the overall performance of the company and among the variables related to behavioral factors, the variable related to overconfidence has a positive and significant effect on the judgment and decision-making of investors. It can be concluded that both classical finance and behavioral finance have a significant effect on the Iranian capital market and investors do not make decisions in a completely rational manner.

Article number: 5

Keywords: Psychology, Economics, Finance, Classic Finance, Judgment And Decision Making, Behavioral Finance.

Full-Text [PDF 909 kb] (21 Downloads)

Type of Study: Research | Subject: Special

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Pourheidari O, Alvari Chenari H. Investment Judgment and Decision-Making: A Trade-Off between Psychology and Economics. fa 2024; 16 (64) : 5
URL: http://qfaj.mobarakeh.iau.ir/article-1-2773-en.html

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