Behavioral Reactions An Analysis Based on the Data Derived from the Tehran Stock Exchange

• Main Authors: hamidreza vakilifard, ali saeedi, akbar eftekhari
• Format: Article
• Language: fas
• Published: Alzahra University 2013-09-01
• Series: راهبرد مدیریت مالی
• Subjects: Behavioral Finance; Investors' Behavior; Over &; amp; Under Reaction; Wavelet
• Online Access: http://jfm.alzahra.ac.ir/article_961_094f645c27f2367386351b673d152a56.pdf

Throughout the field of behavioral finance, researchers faced with many exceptions in the financial markets, concluded that psychological phenomena play a major role in determining the behavior of the financial markets. In this research, different types of investors’ behavior are recognized in different time scales. A general model for the Tehran Stock Exchange was designed, using the time series data, from 2006 to 2010. Wavelet analysis was utilized as a statistical and analytical tool to explain trait and multi resolution. The research results show that investors exhibit different reactions after good or bad news. Their reactions on a long term scale are more distinct from those in the short term. The return of investment derived by price is different in various periods after good or bad news; it has the same trend as the direction of EPS adjustment in the short term. But this trend is not recognized in the long term, and is rather reversed.