Department of Business Management, Management Facualty, Islamic Azad University, Central Tehran Branch, Tehran, Iran
Online published on 4 February, 2015.
This research aims to identify the most important judgmental-cognitive biases in decision-making behavior of Tehran stock market investors.
This is a descriptive-survey research in terms of nature and applied research in terms of purpose. It contains 8 hypotheses that address eight cognitive biases in decision-making behavior of Tehran stock investors. The research population is Tehran stock market investors out of which 75 people were selected for assessment. The data collection tool is a questionnaire with 40 questions.
The results indicate a verified correlation among five types of bases: over-confidence, representative, cognitive dissonance, mental accounting and illusion of control in financial decision makings in the stock market. Furthermore, three behavioral biases: self-attribution, confirmation and ambiguity aversion were not observed in investors’ behavior.
Lack of access to all investors in the Tehran stock market, limited time and organized research resources for a more scientific explanation of factors contributing to behavior-financial biases.
Behavioral finance, overconfidence, self-attribution, ambiguity aversion, representative, illusion of control, cognitive dissonance, mental accounting, confirmation
