in this study, provided preliminary evidence on a comprehensive program of study focusing on investors’ behavior in the tehran stock exchange (tse) in 2014. using a survey-based methodology, 561 investors from the tse representing individual investors, mutual fund experts, funding institutions experts, institutional investors, and stock brokers have been randomly selected to respond to a set of...

A recent common view of finance experts is that it is becoming increasingly difficult to understand how the economy as a whole works. Although the efficient market theory might be considered an ideal model enabling the interpretation of market behavior, it has begun to lose ground, and the rationality hypothesis failed to explain the excessive volatility of the returns and trading volume record...

We empirically examine the impact of herding on the accuracy of consensus earnings forecasts from a crowd-based platform (Estimize.com). We monitor user information set by tracking user viewing activities and running experiments. We find that the more public information a user views, the less weight she puts on her private information. While this improves the accuracy of individual forecasts, i...

This paper has three main parts. We first present a brief survey of the behavioral anomalies in the finance literature classified as: price and return effects, volume and volatility effects, time series patterns and other miscellaneous effects. For each category, we find that the empirical literature offers a multitude of explanations. We then develop a theoretical information-processing framew...

Pension Research Council Working Papers are intended to make research findings available to other researchers in preliminary form, to encourage discussion and suggestions for revision before final publication. Opinions are solely those of the authors. This paper is to appear in Pension Design and Structure: New Lessons from Behavioral Finance (forthcoming). Edited by Olivia S. Mitchell and Step...

We show that measures of neural activity provided by functional magnetic resonance imaging (fMRI) can be used to test between theories of investor behavior that are difficult to distinguish using behavioral data alone. Subjects traded stocks in an experimental market while we measured their brain activity. Behaviorally, we find that, our average subject exhibits a strong disposition effect in h...

Pension Research Council Working Papers are intended to make research findings available to other researchers in preliminary form, to encourage discussion and suggestions for revision before final publication. Opinions are solely those of the authors. This paper is to appear in Pension Design and Structure: New Lessons from Behavioral Finance (forthcoming). Edited by Olivia S. Mitchell and Step...

Pension Research Council Working Papers are intended to make research findings available to other researchers in preliminary form, to encourage discussion and suggestions for revision before final publication. Opinions are solely those of the authors. This paper is to appear in Pension Design and Structure: New Lessons from Behavioral Finance (forthcoming). Edited by Olivia S. Mitchell and Step...

This paper explores the fundamental concept of Behavioral Finance and how it relates to an individual’s decision-making in regard balance between risk return. A literature review was conducted, drawing from academic concepts books online resources, as well data collected websites. The aim this is build a foundation knowledge study Finance. theories discussed include Rational Expectation Theory,...