A Financial Behavior Measurement Model to Evaluate the Financial Markets
Keywords:Financial Behavior Measurement Model, Investor Behavior, Financial Markets
Purpose: This study examines the relationship between the financial behavior measurement models and evaluate the financial markets all sectors listed on Iraq Stock Exchange. The current study also to develop a quantitative model for measuring the financial behavior of investors in the financial markets, and thus knowing their behavior, therefore, determining the efficiency of the investment sectors that are being traded.
Theoretical framework: Quantitatively measuring the financial behavior of investors is one of the important issues that have occupied specialists in the financial field due to its close relationship with the level of market efficiency, as well its global indexes. Financial behavior among the behavioral concepts related to the general situation of the investor whether with the knowledge, he possesses or the social situation in which he is present.
Design/methodology/approach: The study uses the Quantitative and mathematical analysis. The sample data of this study includes the period from 2004, the date of the establishment of the Iraq Financial Market, until 2020.
Findings: The study reveals consistent results with the model. The results show that the proposed model can be applied in any of the financial markets to know investors' behavior and show efficiency for the sectors in the financial market, as well important findings of the study is the inefficiency of most sectors. In addition to that, some sectors in it with performance and efficiency are almost the same during the study period.
Research, Practical & Social implications: This study helps Investors and companies on determining the efficient sectors and therefore identifying profitable sectors and selecting them for trading.
Originality/value: The findings suggest several Important results for the fields Financial behavior, and efficiency evaluation in financial markets, It has been developed a quantitative model for measuring the financial behavior of investors in the financial markets, and thus knowing their behavior. The model has proven successful in identifying profitable and losing sectors in the Iraq Stock Exchange
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