Trading behavior of investors in the stock market under the conditions of adherence to social responsibility and behavioral biases

Document Type : Original Article

Authors

1 Ph.D Student in Accounting, Accounting Group Qazvin Branch, Islamic Azad University, Qazvin, Iran

2 Assistant Prof Accounting Group, Faculty of Management and Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran.

3 Assistant Prof Economics and Accounting Group, Faculty of Literature and Humanities, University of Guilan, Rasht, Iran.

4 Associate Prof Accounting Group, Faculty of Management and Accounting, Qazvin Branch, Islamic Azad University, Qazvin,Iran.

10.30495/ijfma.2023.55394.1497

Abstract

Commitment to social responsibility is the company's duty to achieve long-term goals and an important part of a sustainable society. This is not only related to the survival and sustainable development of the company but also to the expectations of the community and is also an important way to disclose non-financial information of companies. Disclosure of information can effectively reduce information asymmetry, improve the quality of internal control, and influence the trading behavior of investors. Therefore, the purpose of researching the transactional behavior of investors under the conditions of adherence to social responsibility and behavioral bias. For this purpose, the present study was conducted with 90 sample companies in the period 2012-2018. The results illustrated that there is a negative, positive and significant relationship between adherence to social responsibility and short-sightedness and avoidance of bias and there is no significant effect with prominence bias. There is no significant relationship between adherence to social responsibility and transactional behavior, earning returns and risk-taking, and there is a significant relationship with risk aversion. Short-sighted behavioral bias has a minor mediating effect on the relationship between adherence to social responsibility and risk-averse transactional behavior. No mediating effect was found for other biases and information bumps.

Keywords

References

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International Journal of Finance & Managerial Accounting
Volume 10, Issue 36
January 2025
Pages 191-208

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