The Impact of Media News on Investors' Decision-Making According to their Degree of Risk-Taking

Document Type : Original Article

Authors

• Ensieh Sharifi ¹
• khadijeh Ebrahimi Kahrizsangi ²
• Arezoo Aghaei Chadegani ¹

¹ Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran

² Department of Accounting, Najafabad Branch, Islamic Azad University, Najafabad, Iran.

10.22067/ijaaf.2024.42801.1167

Abstract

Optimal investment in today's competitive market demands well-informed decisions by astute investors within the capital market. These decisions focus on identifying and prioritizing key factors influencing investor decision-making behavior. In this context, the present study is designed to explore the impact of mass media news on the decision-making styles of investors in the Tehran Stock Exchange. These decision-making styles include avoidant, dependency, spontaneous, intuitive, and rational approaches and their relationship with investors' level of risk tolerance. This research follows an experimental foundation approach regarding its objectives, nature, and execution methodology. It takes the form of a descriptive survey, with data collection carried out through administering a questionnaire. The questionnaires were distributed among investors selected via random sampling from the statistical population, encompassing all investors with a stock code on the Tehran Stock Exchange. Structural Equation Modeling (SEM) was employed to test the research hypotheses. The findings of this study reveal that mass media news exerts a positive and significant influence on avoidant, dependency, and spontaneous decision-making styles, contingent on the degree of risk tolerance of the investors. In contrast, mass media news does not significantly impact intuitive and rational decision-making styles relative to the investors' level of risk tolerance.

Keywords

• Behavioral Finance
• Investor Decisions
• Social Media News
• Investor Risk Level

Main Subjects

• Accounting

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