Desing and Explanation of the Reduction of Consequences of the Behavioral Finance Biases on the Banking System Recession

Document Type : Original Article

Authors

1 Ph.D. Candidate in Financial Management, Islamic Azad University, North Tehran Branch, Tehran, Iran.

2 Associate prof, Department of Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

3 Associate prof, Department of Management, North Tehran Branch, Islamic Azad University, Tehran, Iran.

Abstract

The main purpose of the research is to design a model for reducing the consequences of effective behavioral biases in the recession of the banking system. The main problem is the existence of various behavioral biases in the decision-making process. Banks are one of the vital and very important sectors of any economy. The importance of banks for the national economy becomes clear when we know that banking is a legal and global industry that has a great impact on the formation of relations between nations and governments. This research, in terms of nature and method of research, is a survey type research. In this research,  by using grounded theory, at first,  based on the collection of information through interviews of 74 experts, field notes, participatory observation, documents, abstractions, data production, data analysis with a systematic approach, open coding, axial coding, selective coding and finally after model validation evaluation with the approval of 222 subject experts and confirmatory factor analysis techniques of the first and second order and structural equation modelling, model with 4 dimensions, 20 categories and 239 indicators will be presented. Due to the factor load, the dimensions of the self-deception component have the highest factor load and higher priority. Also, the components of emotional effect and social interactions and innovative simplification are the next priorities, respectively.

Keywords

References

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Financial Management Perspective
Volume 11, Issue 33
April 2021
Pages 33-56

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