Investigating the Effects of Expected Return of Investment, Risk' Perception and Tolerance on Investors' Decision Making in Tehran Stock Exchange

Abstract

The main purpose of this research is investigating the Effects of Expected Return of Investment, Risk' Perception and 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 a main hypothesis as the expected return on investment; perception and risk tolerance effect on investors' decisions in Tehran Stock Exchange three Minor Hypotheses: the expected return on investment, risk perception and risk tolerance. Assumptions of parametric tests including test, Pearson correlation coefficient between independent variables to study the effects and related research and multiple regressions to evaluate the effect and which has a greater impact factor is used. The results of the analysis showed that there is direct and positive relationship between the independent variables and assumptions, investors' decisions in Tehran Stock Exchange. The results show the overall impact of variables expected return on investment, risk perception and risk tolerance of investors' decisions in Tehran Stock Exchange and eliminate the factors; expected operating return on investment has had the greatest impact on stock investment decisions. These factors can be combined with other factors such as personality and behavioral and psychological investors, attitude, financial and behavioral research will be the focus of researcher’s attention.