Document Type : Research Paper

Authors

1 PhD in Business Management

2 Faculty Member of Islamic Azad University;

Abstract

Criticisms to efficient market theory and its rational assumptions as
well as econometric analyses on pricing time series, DPS and incomes
led to the development of models that related psychology to financial
markets. Subsequently, researchers found many exceptions in
financial markets and concluded that psychological phenomena play
an important role in determining behavior in financial markets.
In this research, different types of investors’ behavior have been
analyzed in different time scales. The authors have designed a general
model for capital market of Iran using the time series data of Tehran
Stock Exchange companies reported from 2006 to 2010. Wavelet
analysis was used as a statistical and analytical instrument to explain
trait and multi resolution .
Research results show that investors have different reactions after
good or bad news. Their reaction in long term scale is more significant
than that in short term scale. However, no significant difference was
found among investors behavior in different industries.

Keywords

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