Financial Management Perspective

Financial Management Perspective

Simulation the Model of Effects of Behavioral and Macroeconomic Factors on the Tehran Stock Exchange Index with Using System Dynamics Approach

Document Type : Original Article

Authors
Hooman Pashootanizadeh 1
Habibollah Ranaei Kordshouli 2
Abbas Abbasi 3
Mohammad Hashem Moosavihaghighi 4
1 Ph.D. Student in Systems Management, University of Shiraz, Shiraz, Iran.
2 Associate Prof, Department of Management, University of Shiraz, Shiraz, Iran
3 Associate Prof, Department of Management, University of Shiraz, Shiraz, Iran.
4 Assistant Prof, Faculty of Fars Research Centre for Agriculture, Shiraz, Iran.
10.52547/jfmp.10.29.89
Abstract
The purpose of this study was to provide a model for predict the volatility in Tehran Stock Exchange index, taking into account the behavioral and macroeconomic factors affected on financial and monetary markets of the country. The importance and necessity of this study is that, unlike other previous studies, in order to realize this importance, only macroeconomic dimensions have not been addressed, and in addition to this dimension, the behavior dimensions have been examined, Until to improve the explanatory power of the model than the other presented models in this regard. This matter has been accomplished by using the system dynamism method and the relationship between behavioral bias, alternative assets and macroeconomic factors. The results of the research prove this matter that according to the upcoming conditions until 2021, the value of all alternative assets of shares will grow and consequently, the Tehran Stock Exchange Index will follow this pattern. In this regard, it should be noted that the multi-fold growth of the value of each assets in the monetary and financial markets in a short period of time does not indicate the economic growth in the country, even this matter due to the attract unknowing investors to these markets and it can lead to economic crises.
Keywords
Behavioral Bias
Behavioral Finance
System Dynamics
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