Articles
Publication Date: 2023
Results in Nonlinear Analysis (26367556)6(1)pp. 155-165
The formation of market interactions is directly affected by the decision-making of market players. This paper seeks to assess the presence of behavioral finance on the Iranian financial market as a factor influ-encing market participants’ decisions. The current study evaluates the existence of behavioral finance on the Iranian capital market by focusing on the phenomena of “price clustering” in the total index of the Tehran Stock Exchange. It proposes a new criterion for identifying behavioral bias in the financial market. One of the reasons for the lack of uniformity in the distribution of data in the total index of Tehran securities is the propensity of individuals to make individual decisions based on the index of total securities of Tehran. People use the total index as a criterion for making decisions, and when the total index reaches round numbers, their purchasing and selling behavior changes. The results of the study validate the phenomena of price clustering in round numbers in Tehran’s total stock index. In actuality, the lack of uniform distribution in the total index numbers of Tehran stock is an appropriate indicator of the existence of behavioral finance on the Tehran Stock Exchange. The main differentiating aspect of this study is the introduction of the overall index as a new measure compared to individual symbols for demonstrating behavioral bias in the financial market, which has been employed in previous studies. © 2023, Erdal Karapinar. All rights reserved.
Razmi, S.F.,
Torki, L.,
Razmi, S.M.J.,
Dowlatabadi, E.M. Publication Date: 2022
International Journal Of Energy Economics And Policy (21464553)12(1)pp. 236-242
This research considers how oil price can indirectly affect consumption through asset prices of stock and house. Using the theory of consumption wealth effect, this research shows that, unexpectedly, a rise in oil price would lead to increase in consumption. The research uses the data of three OECD countries of France, Canada and the United States from quarter 1st 1997 to quarter 3rd 2017 and vector autoregression model. Empirical results prove that a positive shock to oil price has a positive indirect effect on consumptions of France and Canada via both asset prices. The indirect effect of oil price on US consumption only exists through stock price. The duration of indirect effect of oil price on consumption depends on dependency of consumption to asset prices in each country. © 2022, Econjournals. All rights reserved.
