the survey of the relationship between disposition effect and cash flows and investment companies performance in tehran stock exchange

in this paper disposition effect, selling winners and holding losers, in tehran stock exchange (tse) investment companies and its effect on these companies’ cash flows and performance using odean model has been reviewed and investigated. research findings show that the realized profit ratio is %19 higher than the realized loss ratio in all of investment companies in tse. this mean there is a behavior based on disposition effect in these companies. other research finding which has been done by generalized least square (gls) method shows that the behavior based on disposition effect of investment companies has, negative effect on their performance (risk-adjust return).furthermore the result of this research shows that between investment companies dispositional behavior and cash flows are direct and significant relation. the result of this research denotes that disposition behavior has negative and significant effect on high performance companies cash flows and makes a direct relation between low performance weak cash flows.