Explanation of the Role of Investors’ Emotional Inclination and the Disclosure Quality on the Investment Behavior of Firms Listed on Tehran Stock Exchange

Market’s lack of adherence to classical financial theories like the efficient market as well as other classical theories has made financial researchers and analysts seek for ethology in the stock market. Derived from modern financial theories and conflicting classical financial theories, investor’s emotional inclinations may explain many abnormalities in the stock market. Research in this regard reveals that the investor’s emotional features may affect the level of investment through affecting the investment behavior in the firm. Moreover, better disclosure of information can affect the firm’s investment behavior via affecting emotions. This study is mainly aimed at investigating the relationship between investor’s emotional inclinations, the investment level, and information disclosure quality. To this end, the information of ۹۸ firms listed on Tehran Stock Exchange over a ۷-years period (۲۰۱۳-۲۰۱۹) was investigated using a multivariate regression model based on the panel data method. The model estimation results revealed that emotions may affect the investment behavior of small firms and the firms’ better disclosure quality has a significant relationship with the small firms’ investment behavior through affecting emotions. These relationships were not confirmed for large firms. Furthermore, the significance of the whole regression model may be concluded given F statistic. Based on Durbin-Watson statistics, there is no strong autocorrelation between the research variables.

کلیدواژه ها:

efficient market ، Investors’ Emotional Features ، Investment behavior ، Disclosure Quality