Empirical Analysis of the Financial Behavior of Investors with Brand Approach (Case Study: Tehran Stock Exchange)

Abstract

Behavioral science in the field of finance and investment is among new topics raised in recent years. The relationship between financial sciences and other fields of social sciences such as financial psychology has caused researchers to do many researches regarding the behavior of investors in the financial markets and their reactions to different situations. Based on the theories of financial behavior, shareholders' decision to buy and sell stocks is under the influence of internal and external psychological factors. Through designing and experimental testing of the model of investors' financial behavior in the Tehran Stock Exchange with an emphasis on brand, this study was an attempt to investigate the influence of these factors. To this end, financial, psychological and social factors were considered as the most important external factors influencing the behavior of investors and, considering the mediating role of brand awareness, their impact on perceived risk and perceived return as well as investment intention was tested. The research population consisted of all individual investors in the Tehran Stock Exchange. In order to determine the sample size, considering unlimited population, Cochran formula was used and hence the sample size was determined to be 145. For data collection, standard questionnaire was used. Confirmatory factor analysis was used to test the reliability of the questionnaire and the research hypotheses were tested using path analysis. The results showed that psychological factors have a positive impact on perceived risk and returns. Financial factors had a positive impact on perceived risk but no impact on perceived return. The impact of social factors on perceived risk and perceived return was not confirmed. Moreover, the results showed that brand awareness has a moderating role in the relationship between social factors and perceived risk and return. However, its moderating role was not confirmed in the relationship between the psychological and financial factors and perceived risk and return. Perceived risk had a positive effect on attitude toward the brand. However, the impact of perceived return on attitude toward the brand was not significant. Finally, the attitude toward the brand had a positive effect on shareholders' investment intention.

Determinants of mobile apps adoption by retail investors for online trading in emerging financial markets

“…The investor who selects online trading platforms and receive profits more frequently tend to use online trading platform more often (Rahman et al, 2020). Previous studies indicated positive relationship which influences the intention to use mobile applications (Dasgupta et al, 2011;Nouri et al, 2017). Previous studies reveal that investors who trade excessively tends to exhibit gambling disorders to influence their behavioral intention for a particular trading behavior (Dixon et al, 2018).…”

“…The gradual shift of retail investors from investing using web browsers to mobile application adoption behavior for e-trading is thus identified as research question in this study. Under the UTAUT framework, perceived risk and perceived return were considered as important predictors of investor behavior in financial markets (Chuang and Chang, 2013;Nouri et al, 2017;Yang and Xie, 2011). The integration of UTAUT framework with the goal contagion theory (Aarts et al, 2004) is considered as another research gaps for technology adoption in behavioral finance domain.…”

Enhancing purchasing stock intention in investor–brands interaction: the moderated mediation role of sector knowledge

“…A favorable attitude toward a brand or company with perceived remarkable performance can influence investment intentions (Mathur et al, 2022). Positive attitudes toward a company have been shown to have a positive effect on the purchase of its shares compared to other companies with similar financial risks and returns (Nouri et al, 2017;Aspara and Tikkanen, 2010;Aspara, 2013). Intentions are commonly used as predictors of behavior, and the relationship between purchase intention and actual purchase behavior has been validated in various financial product and service domains (Gardner et al, 2020;Silva et al, 2019;Çal and Lambkin, 2017a;Tornikoski and Maalaoui, 2019).…”

“…These studies emphasize the significance of factors such as brand reputation, firm status within the industry, past stock performance, share price, economic sensitivity and anticipated returns to investors in shaping investment decisions. Investors perceive brand reputation as a means to gain crucial insights into a firm's longterm potential and profitability, ultimately impacting the attractiveness of the firm as an investment destination (Aspara, 2013;Nouri et al, 2017). Consequently, a positive reputation of a company can foster investor confidence and positively influence their investment decisions (Nawrocki and Szwajca, 2022;Cole et al, 2014).…”

Effect of Trading Companies Share on Investors' Attitude and Financial Behaviour

“…Surajit S. et al (2018), the study has been done in Bangladesh and author recommend in literature that many of influencing factors which these factors significantly effective on investment decisions in stock trade in share market. Bagher A. et al (2017), in term of stock trading the investors and shareholders focus on the factors of social, psychological and financial behavior are studied and affect the behavior of investors and traders and taken into significant external factors in trading of stocks. The impact of external factors was measured on risk and return; attitude towards products and investment purpose were calculated with moderating role of brand information.…”