Effect of Risk Perception and Risk Tolerance on Investors' Decision Making in Tehran Stock Exchange

Abstract

The main purpose of this research is investigating the Effects of Risk Perception and risk Tolerance on
Investors' Decisions Making in Tehran Stock Exchange in during time on July until April 2015. The
statistical population included all professional and non-professional investors given that the community
was not unlimited, the number of samples required was appointed research using Cochran formula 384
using simple random sampling method selected. The number of professional investors research, 108 legal
brokers in Tehran Stock Exchange among the others were individual investors questioned. This study in
terms of purpose is applied research and survey. Regarding the method of inference, this research is
descriptive – analysis. data collection and measurement tools and methods was inventory derived from
three valid sources that the independent variables and the dependent variable in the form of 30 questions
has been prepared using Cronbach's alpha coefficient reliability were assessed. The validity of the
questionnaire by expert teachers has approved. This study consists of two Hypotheses: the effects of risk
perception and risk tolerance on Investors' Decisions in Tehran Stock Exchange. Assumptions of
parametric tests including test, Pearson correlation coefficient between independent variables to study the
effects and related research and multiple regressions to evaluate their effect has used. The results of the
analysis showed that there is direct and positive relationship between the independent variables and
assumptions on investors' decisions in Tehran Stock Exchange. The results showed the overall impact of
variables risk perception and risk tolerance of investors' decisions in Tehran Stock Exchange .These
factors can be combined with other factors such as personality and behavioural and psychological
investors, attitude, financial and behavioural research will be the focus of researcher’s attention.