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The Impact of unrealistic news on investors' decisions In Tehran Stock Exchange
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Ehsan Rajabi *   |
| Agricultural Planning, Economicand Rural Development Research Institute, |
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Abstract: (1453 Views) |
In the stock market, there are different types of information (related or unrelated) and rumors that the source of this information can be audit reports of companies, shareholders, analysts (fundamental and technical) and social networks. Due to the importance of this information, different people with different perceptions may show different reactions and behaviors. The main purpose of this study is to investigate the effect of untrue news and information on the decision of investors and buyers of shares in the Tehran Stock Exchange. News and information in three subjects: political, economic and industrial, classification and data and information required by a researcher-made questionnaire (after validation and reliability) were collected in a statistical population of 295 people. Next, the effect of each type of news on investors' stock decisions are estimated by a multivariate regression model using the ordinary least squares (OLS) estimation method. The results show that unrealistic political, economic and industrial news and information have a significant effect on the decision of investors and stock buyers. It was also found that investors' decisions in stocks are most influenced by unrealistic political news and information compared to economic news and industrial news.
Economic and political uncertainty makes it difficult to predict profitability and decision-making in commercial and non-commercial environments, disrupting making decisions about production and investment. Given the negative impact of economic policy uncertainty on investment, it is necessary for the government and the central bank to adopt appropriate policies while reducing fluctuations, to establish institutions and risk hedging instruments to reduce the turmoil caused by unrealistic economic and political news. And take action on risk management in this regard. |
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| Keywords: Uncertainty, Investment, Behavioral bias, Behavioral finance |
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Full-Text [PDF 1082 kb]
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Type of Study: Research |
Subject:
Special
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