A Study of Cultural, Social and Psychological Factors Influencing Individual Investors’ Behavior in Stock Exchange

Document Type : Research Article


1 Ph.D. Student, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

2 Assistant Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

3 Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

4 Associate Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran


This study has attempted to develop the scientific literature on cultural, social and psychological factors influencing individual investors’ behavior and offer a clear strategy to know their decisions in stock exchange market. Since our society is affected by cultural and social affairs, studying these factors and their effects on individual investors’ behavior (which account for up to to %50 of stock exchange trading volume and %90 of the total number of trades, respectively) can come to a framework for future modeling and to clarify stock exchange atmosphere more. In this research, after studying the related literature and the theoretical background using meta-syntheses, the theoretical saturation was reached. Applying Delphi research method in three rounds, the whole comments and ideas of experts were collected and used to achieve the required convenient questionnaire. This questionnaire was distributed among four hundred people (as the survey stage) and the collected data was analyzed using confirmatory factor analysis (CFA). Based on the obtained results about dimensions, components, and indices, this study approved and measured the effect of these factors on individual investors’ decision making, and suggested more convenient advices to control the stock exchange market atmosphere as well.


Main Subjects

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