Managerial confidence and Economic sentiments Index design for listed company's managers of Tehran Stock Exchange

Document Type : Original Article

Author

Assistant Prof. Department of Management, Payam Noor University, Yazd, Iran.

Abstract

The current financial literature examines business cycles based on a retrospective approach and emphasizes the rational assumption of humans in evaluating managerial confidence models. the main purpose of the study is to design an index that describes the collective belief of managers towards the economic sectors and represents the economic sentiments and managerial confidence of managers of companies listed on the Tehran Stock Exchange. The present study includes qualitative and quantitative steps. With a deep search of library resources and with the method of theme analysis, the basic themes that explain confidence are compiled. Then, according to the Delphi method, these topics were assigned to capital market and academic elites for assessment. During the three-step process, the theoretical consensus on the indicators used in the questionnaire was confirmed. In a quantitative step, the confirmatory factor analysis method was used to evaluate the questionnaire's validity.
Tests obtained from factor analysis showed that it is appropriate to describe the variables by the hidden variable. And the factor structure of the questionnaire can be verified. Applying the combined index to describe the company's managers' managerial confidence and economic sentiments listed on the Tehran Stock Exchange gets the necessary competence. In addition, analysts, investors, and regulators can use it to determine the attitude of business towards the future of the economy.

Keywords

References

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Financial Management Perspective
Volume 11, Issue 33
April 2021
Pages 245-272

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