Investigation of risk perception mental model of investors of Tehran Stock Exchange

Subject Areas : Journal of Investment Knowledge

Fraydoon Rahnamay Roodposhti ¹ (Professor of Islamic Azad University, Science & Research Branch)
Ahmad Nategh Golestan ² (Ph.D student of financial management, Islamic Azad University, Science & Research Branch(Corresponding))
Ahmad Yaghoobnezhad ³ (Associate Professor of Islamic Azad University, Central Tehran Branch)

Received: 2014-09-13 Accepted : 2014-12-26 Published : 2014-12-26

Keywords: Value, risk perception, Investment Culture, Cultural Factor,

Abstract :

Emotions, moods of investors and other factors affect the perception and therefore affect the investment decisions. Investors risk perception defines as subjective judgment of risk that might be estimated by investors more or less than the actual risk assessment. This mental or perceived risk influence of numerous non-economic factors and ever more of these factors have a strong presence, perceived risk, would greater distance from the real risk.  In this study examine perceived risk and risk perception according to the paradigm of pragmatism on micro levels. At the micro level (investors) that have been done in two ways, induction and deduction, through interview and library studies on  investors risk perception , factors were identified five categories those are: 1 – time factors 2 – demographic factors, 3 - behavioral factors, 4 - cultural factors and 5 - personality factors. After designing the questionnaire, reliability and validity of it were assessed then was completed by the capital market experts and at the end after analysis of structural model equations(SME) with Amos 16 software determined except for demographic factors, other factors  influenced the risk perception at 95% confidence level. And finally the mental risk perception model based on perception formation process was presented.