The Investigation of the Risk Perception Effects and the Impact of Seasonal Factors on it in Tehran Stock Exchange

Document Type : Research Paper

Author

islamic azad university of neyshabor

Abstract

One of the aspects of behavioral finance is risk behavior that is also known as mental risk or perceived risk that in fact is the investors` subjective judgment of the risk that may be estimated more or less than the actual risk. Risk sentiment Index is more influenced by non-economic factors. Several factors are indicators of RSI such as the days of the week, months and seasons, to name a few. In this paper, after examining the effects of risk perception in Tehran Stock Exchange index, using time series regression models and eviews8 software, it became clear that the perceived risk of the investor has the effect of non-random, which demonstrates a perception of risk. However, after seasonal effects influencing the perceived risk was found, that Tehran Stock Exchange has a maximum sense of risk investors on the final day Transactions. This means that during last week, Tehran Stock Exchange’s investors feel more risks. Likewise, especially in early April RSI is minimum. Then, the return of this month is in maximum.

Keywords

References

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Financial Management Strategy
Volume 5, Issue 3 - Serial Number 18
November 2017
Pages 145-170

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History

  • Receive Date: 22 October 2016
  • Revise Date: 14 October 2017
  • Accept Date: 23 October 2017

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