International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

The Impact of Financial Behavior on Financial Decisions

Document Type : Original Article

Author
kaveh Parandin
Department of Accounting, Payame Noor University, Tehran, Iran.
10.22034/ijfma.2025.77929.2176
Abstract
the aim of this research is to examine the relationship between financial behavior and financial decision-making in brokerage firms in the Iranian capital market. The statistical population of this study consists of 380 managers from brokerage firms in Tehran province, from which a sample of 191 individuals was selected over a six-month period from the beginning of (January 2022) to the beginning of (June 2022). A questionnaire was used to collect the necessary data, and the data analysis was conducted using Excel, SPSS, and LISREL software. The results of the hypothesis tests indicate positive and significant relationships between various financial behavior variables and financial decision-making. The first hypothesis test showed a positive and significant relationship between urgency in selection and investment decision-making. The second hypothesis test also indicated a positive and significant relationship between loss aversion and investment decision-making. Additionally, the third hypothesis test revealed that overconfidence also has a positive and significant impact on investment decision-making. The findings suggest that financial behaviors such as urgency in selection, loss aversion, and overconfidence can influence investment decisions. These results emphasize the necessity of considering psychological aspects in the financial decision-making process. Therefore, investors and managers of brokerage firms should pay more attention to these behaviors to achieve more optimal financial decisions.
Keywords
financial behavior, decision-making, brokerage firms, capital market
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