Presenting a model for identifying the risk aversion of shareholders according to the influence and role of the government’s monetary and fiscal policies and the mass behavior of shareholders

Samiee, Mohammadreza; Noorolahzadeh, Norouz; Saraf, Fatemeh

doi:10.22075/ijnaa.2024.32423.4822

Presenting a model for identifying the risk aversion of shareholders according to the influence and role of the government’s monetary and fiscal policies and the mass behavior of shareholders

Document Type : Research Paper

Authors

Mohammadreza Samiee

Norouz Noorolahzadeh

Fatemeh Saraf

Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran

10.22075/ijnaa.2024.32423.4822

Abstract

Risk aversion is one of the investment theories in which the price-performance ratio reacts to the investor’s risk tolerance and is guided with due attention to its changes. These settings allude to changes in the investor’s activity in response to global economic patterns. According to this theory, investors tend to have higher-risk investments when the market risk is low. However, investors tend to invest in a safe asset when a high market risk is felt. The investor’s tendency to avoid risk increases and decreases over time. Occasionally, investors invest more in higher-risk instruments than in other periods, such as economic prosperity in 2009. The primary purpose of this research study is to present a model for identifying the risk aversion of shareholders depending on the influence and role of the government’s monetary and fiscal policies and the mass behavior of shareholders. This is applied research in terms of purpose and descriptive survey research in terms of method. The statistical population of the research is the country of Iran. The study’s participants include managers, shareholders, and investors with associated scientific backgrounds and experience in the stock exchange. Thus, the managers, shareholders, and investors active in the stock exchange were selected as the participants of the present study. Besides, the purposeful sampling method and theoretical sampling strategy with maximum variation were used. The researcher reached theoretical saturation by interviewing nine people, and the interviews continued with 11 people to become confident about the results. Data analysis was done using MAXQDA OLS, pls software. The research results have been to identify the role of the government’s monetary and fiscal policies and the shareholders’ mass behavior in presenting the model of identifying the risk aversion of the shareholders.

Keywords

Risk

risk aversion

monetary and fiscal policies of the government

mass behavior of shareholders

[1] M. Amini Rad, N. Mehrgan, A. Shahabadi, and D. Jafari Sarasht, Modeling the explainers of risk aversion in Iran’s economy, Economet. Model. 7 (2022), 97–121.

[2] Gh. Asadi and M. Soleymani, Investigating the effect of capital and liquidity measures on the probability of financial distress in banks, Financ. Manag. Strategy 8 (2020), no. 3, 147–174.

[3] M. Ashouri Roudpashti, The relationship between internal managers, risk aversion, and financial performance of companies listed in Tehran Stock Exchange, Nat. Conf. Bus. Manag. (2018).

[4] N. Barberis and R. Thaler, A survey of behavioral finance, Handbook Econ. Finance 1 (2003), 1053–1128.

[5] P. Dahmen, Organizational resilience as a key property of enterprise risk management in response to novel and severe crisis events, Risk Manag. Insurance Rev. 26 (1988), no. 2, 203–245.

[6] M. Dahmene, A. Boughrara, and S. Slim, Nonlinearity in stock returns: Do risk aversion, investor sentiment and, monetary policy shocks matter?, Int. Rev. Econ. Finance 71 (2021), 676–699.

[7] K. Daniel, M. Grinblatt, S. Titman, and R. Wermers, Measuring mutual fund performance with characteristic-based benchmarks, J. Finance 52 (1997), no. 3, 1035–1058.

[8] A.L. de Avila, E. Davel, and S.R. Elias, Emotion in entrepreneurship education: Passion in Artistic entrepreneurship practice, Entrepreneur. Educ. Pedag. 6 (2023), no. 3, 502–533.

[9] H. Fang, M. P. Keane, and D. Silverman, Sources of advantageous selection: Evidence from the Medigap insurance market, J. Politic. Econ. 116 (2008), no. 2, 303–350.

[10] K. Islamluiyan, H. Yazdan Panah, and Z. Khalilnejad, Investigating the existence of monetary policy risk-taking channel in Iran’s banking system, Econ. Model. Res. Spring 31 (2017), 7–40.

[11] J.G. March and Z. Shapira, Managerial perspectives on risk and risk-taking, Manag. Sci. 33 (1987), no. 11, 1404–1418.

[12] K.D. Miller and W.-R. Chen, Variable organizational risk preferences: Tests of the March-Shapira model, Acad. Manag. J. 47 (2004), no. 1, 105–115.

[13] S. Rafiei Qara Shiran, K. Emami, and F. Ghaffari, Identifying the influencing factors of monetary policies on the banking system, Quart. J. Econ. Model. Azad Univer. 46 (2018), 1–24.

[14] H. Sharifi Renani, N. Honarvar, S. Daie Karimzadeh, and F. Amrollahi Pourshirazi, Investigating the effects of monetary policy on gross domestic product through the lending channel of the banking system in Iran, Econ. Model. J. 4 (2009), 27–48.

[15] M.Z. Tauni, H.X. Fang, and S. Yousaf, The influence of investor personality traits on information acquisition and trading behavior: Evidence from Chinese futures exchange, Person. Indiv. Differ. 87 (2015), 248–255.

[16] D. Watson, L.A. Clark, and A. Tellegen, Development and validation of brief measures of positive and negative affect: The panas scales, J. Person. Soc. Psycho. 54 (1988), no. 6, 1063.

[17] H. Zare, Z. Rasaie Sakha, and M. Zare, Risk aversion and value at risk in macroeconomic assets portfolio: An approach of econophysics, Deve. Capital J. Shahid Bahonar Univ. Tehran 5 (2019), 17–30.

[18] D. Zhou, Risk aversion, informative noise trading, and long-lived information, J. Econ. Model. 97 (2021), 247–254.