Cultural factors and risk-taking power of investment companies in Iran's stock exchange

Subject Areas : Journal of Investment Knowledge

M. Ali Motafaker Azad ¹ , Hosein Asgharpour ² , Mohsen Amini Khouzani ³

1 - Professor, Department of Economics, Faculty of Economics, Management and Business, Tabriz University, Iran
2 - Associate Professor, Department of Economics, Faculty of Economics, Management and Business, Tabriz University, Iran
3 - Ph.D. student of economics Faculty of Economics, Management and Business, Tabriz University, Iran

Received: 2017-08-02 Accepted : 2017-11-12 Published : 2019-06-22

Keywords: risk aversion, Cultural Factors, Companies active in the stock , Iran&amp, #039, s Stock Exchange,

Abstract :

This study aimed to investigate the influence of cultural factors on the risk power of companies in Iran's stock exchange. The companies surveyed included 178 companies selected by sampling method based on the specified criteria. To estimate the impact of cultural factors on the risk of active companies in the Iranian stock exchange and to analyze the relationships between the variables presented in the model with the use of panel data extracted from the financial statements in the stock exchange and other reports published by both statistical and religious institutions and Cultural was used. In this study, the panel method was used and before that Chow and Housman tests were used to determine the type of test. The results of the study on the effect of cultural factors on the riskiness of the companies active in the stock exchange showed that cultural factors have a significant effect on the standard deviation of the company's returns, the standard deviation of the firm's return on assets and the costs of research and development of the company, and This relationship is negative for all of the three risk aversion factors. In sum, it can be concluded that the promotion of cultural factors in the society influences all three indexes related to the risk appetite of companies in the stock market and thus reduces the risk aversion of these companies.

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