Title: Perceived risks of individual investors in the capital market: the antecedences and consequences

Authors: Amir Reza Konjkav Monfared; Saeed Fathi; Bahram Ranjbarian

Addresses: Department of Business Administration, Faculty of Economics, Management and Accounting, Yazd University, Iran ' Department of Management, Faculty of Administrative Sciences and Economics, University of Isfahan, Iran ' Department of Management, Faculty of Administrative Sciences and Economics, University of Isfahan, Iran

Abstract: Perceived risks are important in investment decision-making. This is why the present study aims to investigate the antecedents and consequences of the perceived risks in the capital market. Accordingly, a conceptual model was developed and tested among the individual investors who invested in Tehran Stock Exchange through brokerage firms. The model was developed and tested in two steps. The first step involved the identification of those factors which are effective in forming the perceived risks among individuals. In the second step, the consequences of perceived risks were recognised. The findings revealed that self-efficacy, trust, perceived quality, risk propensity, and investor knowledge are the main predictors of perceived risks in Tehran Stock Exchange. In addition, our findings indicated that the perceived risks have a negative effect on the investment intention. Finally, our findings revealed that perceived risks of individual investors have an indirect effect on the investment intention through information search and attitude.

Keywords: perceived risks; trust; self-efficacy; risk propensity; investment intention.

DOI: 10.1504/IJBIR.2017.086294

International Journal of Business Innovation and Research, 2017 Vol.14 No.2, pp.259 - 278

Received: 28 Sep 2015
Accepted: 04 Dec 2015
Published online: 04 Sep 2017 *

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