Presenting and explaining the model of the role of behavioral characteristics and financial literacy of real investors on their financial management components in the Iranian capital market

Advances in Mathematical Finance and Applications

مقاله 15، دوره 8، شماره 4، آذر 2023، صفحه 1371-1387   

نوع مقاله: َApplied-Research Paper

شناسه دیجیتال (DOI): 10.22034/amfa.2022.1912745.1503

نویسندگان

RouhAllah gheysari¹؛ Allah Karam Salehi^{* 2}؛ Soghra Ghobadi³

¹Department of Accounting, Khorramshahr International, Islamic Azad University, Khorramshahr, Iran

²Department of Accounting, Masjed Soleiman Branch, Islamic Azad University, Masjed Soleiman, Iran.

³Department of Economics, Ahvaz Branch, Islamic Azad University, Ahvaz, Iran

چکیده

The purpose of this study is to present and explain the paradigm model of the role of behavioral characteristics and financial literacy of real investors on the components of their financial management behavior in the Iranian capital market. For this purpose, a 77-item questionnaire derived from qualitative studies using grounded theory method was used. The chi-square value of the model is equal to 3946.370, the degree of freedom of the model is equal to 2174, the result of which is equal to 1.815, and the fit indices of the original model are all in an acceptable and appropriate level. Behavioral characteristics and financial literacy can predict financial management behavior and help real investors analyze stock market trends before making a decision, which leads to investment profitability, financial security and capital satisfaction.

کلیدواژه‌ها

Behavioral characteristics؛ financial literacy؛ financial management behavior؛ real investors

مراجع

[1] Aghababaei, M., Khademi, S., Factors Affecting Personal Financial Management Behaviors – The Case of Iranian Youth, Financial Management Strategy, 2019, 7(1), P. 123-143. Doi: 10.22051/jfm.2018.15006.1347

 

[2] Abdollahi, M., Majdzadeh Tabatabai, Sh., The effect of personal characteristics on financial risk-taking with respect to the moderating role of financial literacy, the Third International Conference on Dynamic Management, Accounting and Auditing, Tehran, Salehan University, 2018.

 

[3] Arab mazar yazdi, M., Badri, A., Azizian, A., An Empirical Investigation of Herd Behavior: Evidence from TSE, Empirical Studies in Financial Accounting, 2012, 10(39), P. 1-27.

 

[4] Azadi, R., Zanjirdar, M., Farshidpour, A, Financial literacy and its influencing factors and its impact on retirement planning, the first regional conference on research and new solutions in accounting and management, Tonekabon, 2012.

 

[5] Adib Hajbagheri, M., Parvizi, S., Salsali, M., Qualitative research methods, Tehran: Publication and human propaganda, 2011.

 

[6] Aghababaei, M., Khademi, S., Factors Affecting Personal Financial Management Behaviors – The Case of Iranian Youth, Financial Management Strategy, 2019, 7(1), P. 123-143. Doi: 10.22051/jfm.2018.15006.1347

 

[7] Agarwal, S., and Bhashkar, M., Cognitive Abilities and Household Financial Decision Making, American Economic Journal: Applied Economics, 2013, 5(1), P. 193-207. Doi: 10.1257/app.5.1.193

 

[8] Abdorrahimian, M., Torabi, T., Sadeghisharif, S., Darabi, R., Behavioral Decision Making Pattern for Individual Investors in Tehran Stock Exchange, Journal of Investment Knowledge, 2018, 7(26), P. 113-130.

[9] Alrabadi, D., Waleed, H., Al-Abdallah, Sh., Ibrahim Abu Aljarayesh, Y., N., Behavioral Biases and Investment Performance: Does Gender Matter? Evidence from Amman Stock Exchange, Jordan Journal of Economic Sciences, 2018, 5(1), P. 77-92.

 

[10] Agah, M., Malekpour, H., Bagheri, A., Investigating the Effect of Financial Constraints and Different Levels of Agency Cost on Investment Efficiency, Advances in Mathematical Finance and Applications, 2017, 2(4), P. 31-47. Doi: 10.22034/amfa.2017.536264

 

[11] Ahmadi, R., Kordloei, H., The Effect of Financial Distress on the Investment Behavior of Companies Listed on Tehran Stock Exchange. Advances in Mathematical Finance and Applications, 2018, 3(4), P. 17-28.

 Doi: 10.22034/amfa.2019.565459.1108

[12] Azadi, M., Izadikhah, M., Ramezani, F., Hussain, F.K., A mixed ideal and anti-ideal DEA model: an application to evaluate cloud service providers, IMA Journal of Management Mathematics, 2020, 31(2), P. 233-256, Doi: 10.1093/imaman/dpz012

[13] Bayar, Y. et al. Financial Literacy and Financial Risk Tolerance of Individual Investors: Multinomial Logistic Regression Approach, SAGE Open, 2020, Doi: 10.1177/2158244020945717.

 

[14] DeLaune, L., Rakow, J., and Rakow, K.C., Teaching financial literacy in a co-curricular service-learning model, Journal of Accounting Education, 2010, 28(2), P.103-113. Doi: 10.1016/j.jaccedu.2011.03.002

 

[15] Dew J., Jing J-X., The Financial Management Behavior Scale: Development and Validation, Journal of Financial Counseling and Planning, 2011, 22(1), P. 43-59.

 

[16] Dolatabadi, I.B., Financial Behavior, The Governing Paradigm of Financial Markets, Tadbir Scientific-Educational Monthly, 2009, 191.

 

[17] Emami Heidari, N.,and Ismaili, H., The Impact of Financial Literacy on the Relationship between Investor Personality and Stock Buying Behavior in Isfahan Securities Capital, National Conference on New Models in Management and Business with National Entrepreneurs Support Approach, Tehran, 2018.

 

[18] Feng, X., Lu, B., Song, X., Ma Shuang, Financial literacy and household finances: A Bayesian two-part latent variable modeling approach, Journal of Empirical Finance, 2019, 51, P. 119-137, Doi: 10.1016/j.jempfin.2019.02.002.

 

[19] Hijroudi, F., Doustar, M., Moradi, M., Analysis of the role of five factor model of personality on the The effect of financial information acquisition on behavior of investors in the Tehran Stock Exchange, Journal of Investment Knowledge, 2018, 7(25), P.39-60.

 

[20] Jokar, H., Shamsaddini, K., Daneshi, V., Investigating the Effect of Investors' Behavior and Management on the Stock Returns: Evidence from Iran, Advances in Mathematical Finance and Applications, 2018, 3(3), P.41-52. Doi: 10.22034/amfa.2018.544948

[21] Jalilvand, A., Rostami Noroozabad, M., Rahmani, S., Recent Evidence on Investors’ Behavior in the Tehran Stock Exchange: Preliminary Evidence and Future Insights, Financial Research Journal, 2016, 18(1), P. 95-125. Doi: 10.22059/jfr.2016.59622

 

[22] Karbasi Yazdi, H., Mohammadian, M., Effect of Profitability Indices on the Capital Structure of Listed Companies in Tehran Stock Exchange, Advances in Mathematical Finance and Applications, 2017, 2(3), P. 1-11. Doi: 10.22034/amfa.2017.533085

[23] Mali, M., Fallah, M., Saeedi, A., Desing and Explanation of the Reduction of Consequences of the Behavioral Finance Biases on the Banking System Recession. ـJournal of Financial Management Perspective, 2021, 11(33): 33-56. Doi: 10.52547/jfmp.11.33.33

 

[24] Moradi, J., Izadi, M., An Investigation into the effects of Investors’ Financial Literacy on Securities Investment Decisions, Journal of Investment Knowledge, 2014, 4(127), P. 127-150.

 

[25] Meier, Stephan and Sprenger, Charles, Discounting Financial Literacy: Time Preferences and Participation in Financial Education Programs, IZA Discussion Paper No. 3507, Doi:10.2139/ssrn.1139877

 

[26] Nhu, N.T.A., Nguyen, K, M., Role of Financial Literacy and Peer Effect in Promotion of Financial Market Participation: Empirical Evidence in Vietnam, Journal of Asian Finance, Economics and Business, 2020, 7(6), P. 1-8. Doi: 10.13106/jafeb.2020.vol7.no6.001

 

[27] Nalini R. Alamelu R., Amudha R. and L., Cresenta Shakila Motha, Financial Literacy and its Contributing Factors in Investment Decisions among Urban Populace, Indian Journal of Science and Technology, 2016, 9(27). Doi: 10.17485/ijst/2016/v9i27/97616

 

[28] Nusron Lulu, A., Wahidiyah, M., and Dekeng, S. B., Antecedent Factors of Financial Management Behavior: An Empirical Research Based on Education, International Conference on Economics, Business and Economic Education 2018 Volume 2018.

 

[29] Parsa, B., Sarraf, F., Financial Statement Comparability and the Expected Crash Risk of Stock Prices, Advances in Mathematical Finance and Applications, 2018, 3(3), P. 77-93.

 Doi: 10.22034/amfa.2018.544951

[30] Poordavoodi, A., Moazami Goudarzi, M.R.,  Haj Seyyed Javadi, H., Rahmani, A.M., Izadikhah, M., Toward a More Accurate Web Service Selection Using Modified Interval DEA Models with Undesirable Outputs, Computer Modeling in Engineering & Sciences, 2020, 123(2), P. 525-570, Doi: 10.32604/cmes.2020.08854

[31] Rezaian A., Simiari M.R., Sustani, H., The Operational Framework for Personal Finance Management Based on the Supreme Leader Ayatollah Khamenei’s Statement, Islamic Quarterly Journal of Islamic Financial Research, 2019, 9 (17), P. 110-69. Doi: 10.30497/IFR.2019.2417

 

[32] Rezaei, N., Elmi, Z., Behavioral Finance Models and Behavioral Biases in Stock Price Forecasting, Advances in Mathematical Finance and Applications, 2018, 3(4), P. 67-82.

Doi: 10.22034/amfa.2019.576127.1118

[33] Roostaee, R., Izadikhah, M., Hosseinzadeh Lotfi, F., An interactive procedure to solve multi-objective decision-making problem: an improvment to STEM method, Journal of Applied Mathematics, 2012, 324712, P. 1-18, Doi: 10.1155/2012/324712

[34] Rostami, M.R., Beikzadeh, L., and Ajdari, F., Testing capital asset pricing model based on exogenous information assumptions in TSE, Financial Engineering and Portfolio Management, 2016, 7(27), P. 71-86.

 

[35] Rasool, N., and Ullah, S., Financial literacy and behavioural biases of individual investors: empirical evidence of Pakistan stock exchange, Journal of Economics, Finance and Administrative Science, 2020, 25(50), P. 261-278. Doi:10.1108/JEFAS-03-2019-0031

 

[36] Rostami Norouzabad, M., Sedaghat, P., and Habibi, F., Investigating the Factors Affecting the Behavior of Investors in the Tendency to Invest in New Investments (Case Study: ‌ Investors ‌ Tehran Stock Exchange), Financial Management Perspectives, 2015, 10(94), P. 94-69.

 

[37] Josua Christian Yap, R., Komalasari, F., Hadiansah, I., The Effect of Financial Literacy and Attitude on Financial Management Behavior and Satisfaction, Bisnis & Birokrasi Journal 2018, 23(3).

Doi: 10.20476/jbb. v23i3.9175

 

[38] Sayadi, M., Abrun, S., Financial literacy and an overview of the factors affecting the increase of financial literacy of children in the family, International Conference on Research Approaches in Management, Economics, Accounting and Humanities, 2016.

 

[39] Salehi, A., Mohammadi, S., Afshari, M., Impact of Institutional Ownership and Board Independence on the Relationship Between Excess Free Cash Flow and Earnings Management, Advances in Mathematical Finance and Applications, 2017, 2(3), P. 91-105. Doi:10.22034/amfa.2017.533104

[40] Tavana, M., Izadikhah, M., Farzipoor Saen, R., Zare, R., An integrated data envelopment analysis and life cycle assessment method for performance measurement in green construction management, Environ Sci Pollut Res, 2021,  28, P.664–682. Doi: 10.1007/s11356-020-10353-7

[41] Taftian, A., and Tajmalian, A. H., A Review of Financial Literacy and Financial Behavior Studies in Different Age Groups, 3rd International and National Conference on Management, Accounting and Law Studies, Tehran, 2020.

 

[42] Tavana, M., Izadikhah, M., Toloo, M., Roostaee, R., A new non-radial directional distance model for data envelopment analysis problems with negative and flexible measures, Omega, 2021, 102, 2021.

Doi: 10.1016/j.omega.2020.102355.

[43] VanRooij, M. and Lusardi, A., Financial literacy and stock market participation, Journal of Financial Economics, 2011, 101(2011). P. 449–472, Doi: 10.1016/j.jfineco.2011.03.006

[44] Yazdani, H., Medikhani, H., Ahmadi, D., Alivandi, A. Analyzing the Influence of Self-Esteem and Financial Knowledge on the Financial Behavior (Case study: brokerage of real investors of Eghtesade Novin Bank). Journal of Investment Knowledge, 2018, 7(27), P. 59-78.

 

[45] Zare, R., Izadikhah, M., Multi-criteria decision making methods for comparing three models of aluminum ingot production through life cycle assessment, Applied Ecology and Environmental Research, 2017, 15(3), P. 1697-1715, Doi: 10.15666/aeer/1503_16971715

[46] Zamanianfar, L., Rahnamay Roodposhti, F., Banimahd, B., Nikoomaram, H., Deilami, Z., The Role of Earnings Management in Economic Growth and Corporate Growth Illusion, Advances in Mathematical Finance and Applications, 2021, 6(4), P.769-787. Doi: 10.22034/amfa.2020.1900232.1430