The role of behavioral tendencies (sentiment) of investors in valuation of the company

The purpose of this article is to examine the impact of sentiments and behavioral tendencies of investors on pricing of capital assets. For this purpose, the adjusted three-factor model of Fama and French has been used based on the evaluation criteria for emotions of the investor. This study has bee...

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Autores principales:	Behzad Kardan (Ph.D), Mohammad Hossein Vadeei (Ph.D), Mohammad Hossein ZolfagharArani
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2018
Materias:	investor’s emotions stock pricing stock turnover fama and french model Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/c120a6872bae4855b522982324679e40
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spelling	oai:doaj.org-article:c120a6872bae4855b522982324679e402021-11-04T19:53:27ZThe role of behavioral tendencies (sentiment) of investors in valuation of the company2008-89142476-292X10.22103/jak.2017.10630.2454https://doaj.org/article/c120a6872bae4855b522982324679e402018-01-01T00:00:00Zhttps://jak.uk.ac.ir/article_1859_227bedfbfb09af55691349a0beb14edf.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XThe purpose of this article is to examine the impact of sentiments and behavioral tendencies of investors on pricing of capital assets. For this purpose, the adjusted three-factor model of Fama and French has been used based on the evaluation criteria for emotions of the investor. This study has been done based on the information released by listed companies in Tehran Stock Exchange, in the period between 1389 and 1394, with the selected sample consisting of 141 companies.Results of testing hypothesis show an increase in the explanatory factor of pricing model of capital assets as well as each of its components by adding emotion indexes. Investor emotions indices used in this study includes financial turnover of shares in the market, ratio of days with uptrend to days with downtrend of the stock price and the ratio of spending stock dividend profit. The first and second indicators of investor emotions has a positive and significant relationship with the returns of stock portfolios and regarding the third index, no significant relationship was observed in the model; while, positive emotions compared to negative emotions have a distinct impact on asset pricing. Also, the first and second indicators of emotions impact the market factor of Fama and French model, all three indicators of emotions impact the factor of size of the company in Fama and French model and also the second and third indicators of emotions impact the factor of ratio of book value to market value of Fama and French model.Behzad Kardan (Ph.D)Mohammad Hossein Vadeei (Ph.D)Mohammad Hossein ZolfagharAraniShahid Bahonar University of Kermanarticleinvestor’s emotionsstock pricingstock turnoverfama and french modelAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 8, Iss 4, Pp 7-35 (2018)
institution	DOAJ
collection	DOAJ
language	FA
topic	investor’s emotions stock pricing stock turnover fama and french model Accounting. Bookkeeping HF5601-5689
spellingShingle	investor’s emotions stock pricing stock turnover fama and french model Accounting. Bookkeeping HF5601-5689 Behzad Kardan (Ph.D) Mohammad Hossein Vadeei (Ph.D) Mohammad Hossein ZolfagharArani The role of behavioral tendencies (sentiment) of investors in valuation of the company
description	The purpose of this article is to examine the impact of sentiments and behavioral tendencies of investors on pricing of capital assets. For this purpose, the adjusted three-factor model of Fama and French has been used based on the evaluation criteria for emotions of the investor. This study has been done based on the information released by listed companies in Tehran Stock Exchange, in the period between 1389 and 1394, with the selected sample consisting of 141 companies.Results of testing hypothesis show an increase in the explanatory factor of pricing model of capital assets as well as each of its components by adding emotion indexes. Investor emotions indices used in this study includes financial turnover of shares in the market, ratio of days with uptrend to days with downtrend of the stock price and the ratio of spending stock dividend profit. The first and second indicators of investor emotions has a positive and significant relationship with the returns of stock portfolios and regarding the third index, no significant relationship was observed in the model; while, positive emotions compared to negative emotions have a distinct impact on asset pricing. Also, the first and second indicators of emotions impact the market factor of Fama and French model, all three indicators of emotions impact the factor of size of the company in Fama and French model and also the second and third indicators of emotions impact the factor of ratio of book value to market value of Fama and French model.
format	article
author	Behzad Kardan (Ph.D) Mohammad Hossein Vadeei (Ph.D) Mohammad Hossein ZolfagharArani
author_facet	Behzad Kardan (Ph.D) Mohammad Hossein Vadeei (Ph.D) Mohammad Hossein ZolfagharArani
author_sort	Behzad Kardan (Ph.D)
title	The role of behavioral tendencies (sentiment) of investors in valuation of the company
title_short	The role of behavioral tendencies (sentiment) of investors in valuation of the company
title_full	The role of behavioral tendencies (sentiment) of investors in valuation of the company
title_fullStr	The role of behavioral tendencies (sentiment) of investors in valuation of the company
title_full_unstemmed	The role of behavioral tendencies (sentiment) of investors in valuation of the company
title_sort	role of behavioral tendencies (sentiment) of investors in valuation of the company
publisher	Shahid Bahonar University of Kerman
publishDate	2018
url	https://doaj.org/article/c120a6872bae4855b522982324679e40
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The role of behavioral tendencies (sentiment) of investors in valuation of the company

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