The General Characteristics of an Investor and Their Relationships with Investment Volume Considering Risk-Taking

Abstract

Behavioral finance claims that the investor’s view of capital market is subject to his/her psychological traits, beliefs, and position on risk. Studies show that multiple micro and macro factors, measurable or unmeasurable, affect the investors’ behavior. Furthermore, the investor’s outlook on capital market controls his/her volume, duration and horizon of investment and his/her time to trade. In the light of studies done on the issues so far, the study investigates factors influencing the extent to which investors invest in the capital market. Therefore, personality traits of investors and their risk-taking in Tehran Stock Exchange were investigated. Data were collected through a questionnaire and the relationship between variables was measured by using multiple regression analysis. The results suggest that the investor’s current yield on the stock market, savings, the years of being listed on the stock exchange, income, investment horizon and the numbers of dependents most affect the investment volume in the stock exchange respectively.