Iran Finance AssociationIranian Journal of Finance2676-63372419991201Modeling the prediction of the Financial Behavior in Iranian Stock Market Investors with an Interpretive Structural Approach12610110610.22034/ijf.2019.201765.1069ENFatemeh AhmadiPh.D. Candidate, Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.Mehrdad GhanbariAssistant Prof., Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.Babak Jamshidi NavidAssistant Prof., Department of Accounting, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran.Shahram MamiAssistant Prof., Department of Psychology, Ilam Branch, Islamic Azad University, Ilam, Iran.Journal Article19700101Nowadays, predicting the financial behavior of investors plays a crucial role in decision-making and the financial policy-making process. This study is aimed at providing a paradigm to predict the financial behavior of investors in Iran’s stock market. 24 experts were interviewed to identify the variables, and 24 variables were identified. The interpretive structural paradigming was carried out using a self-interaction matrix based on the experts’ opinions. The MICMAC analysis has been used to identify the types of the variables. As findings of the study, a five-level paradigm was determined, in which environmental factors and the background of financial behavior on the fifth level were the most influential variables and also arbitrage, bias, and the perceptual mistake were the most impressible variables of the paradigm on the first level. MICMAC analysis of this study suggested that the variable of environmental factors had low dependence and high efficacy. Furthermore, psychological projection, perceptual mistake, arbitrage, and bias are dependent variables with high dependence and low efficacy. Other variables are mediator variables with high dependence and effectiveness.https://www.ijfifsa.ir/article_101106_bbe35ea51b815c3e3b747fa9765e0f07.pdfIran Finance AssociationIranian Journal of Finance2676-63372419991201Analyzing the Causal Relations between Trading Volume and Stock Returns and between Trading Volume and Return Volatility in Tehran Stock Exchange274010110810.22034/ijf.2019.101108ENMohammad Reza RostamiAssistant Prof., Department of Finance, Faculty of management, Alzahra University, Tehran, Iran.Peyman AlipourMSc., Department of Finance, Faculty of Management, University of Tehran, Tehran, Iran.Adel BehzadiPh.D. Candidate, Department of Finance, Faculty of Management, University of Tehran, Tehran, Iran.Journal Article19700101Identifying the causal relations between trading volume and stock returns and between trading volume and return volatility plays a vital role in identifying profitable investment opportunities. In this study, the Granger causality test was conducted to analyze the causal relationships between the mentioned variables in Tehran Stock Exchange. Consequently, the Vector Auto Regression (VAR) model was employed to determine the conditional mean equations of returns and volume. Moreover, the bivariate Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model was used to model the conditional variance equation, stating the relationship between volume and return volatility. According to the results, no bilateral causal relationship can be ascertained between returns, volume, and return volatility. In other words, return and return volatility could barely predict volume; therefore, volume cannot be the Granger causality of the other two variables. However, stock returns were found to have an important role in determining the volume. Likewise, return volatility can be used to predict volume accurately. In fact, stock returns and the return volatility were both the Granger causalities of the volume.https://www.ijfifsa.ir/article_101108_380655f903f5e36f4a9964ff285c7e10.pdfIran Finance AssociationIranian Journal of Finance2676-63372419991201Measurement and assessment of systematic risk of selected industries in stock exchange using wavelet approach647710111610.22034/ijf.2019.101116ENGhodratollah EmamverdiAssistant Prof., Department of Economics, Islamic Azad University central Tehran branch, Tehran, Iran.Mojtaba KarimiPh.D. Candidate, Department of Finance, Islamic Azad University South Tehran Branch, Tehran, Iran.Journal Article19700101Investment is an essential factor in a country’s economic development. Meanwhile, return and risk have been effective factors in investment. Today, many financial economists have accepted Risk or Beta as a standard tool for assessing the risk involved in certain actions. This paper has been conducted to find a way to obtain the risk of industries in different timescales included in the short-term and long-term. The statistical population includes a daily index of selected industries (including banks and the food, and car industries) from 2009 to 2014. The present study has measured the risk in different timescales using the wavelet analysis, and consequently, the risk time series have been expressed using a State- Space model. The direct relation between the risk of the selected industries and the market have been eventuated in which, an increase in return of the market would lead to an increase in return of industries and this has also been proven when there is a reduction in return. https://www.ijfifsa.ir/article_101116_611c5a678719215fe9cd5155dd8ebdf7.pdfIran Finance AssociationIranian Journal of Finance2676-63372419991201Financial Integration between Iran, OPEC and the Shanghai Organization7810510111810.22034/ijf.2019.199622.1059ENSaghar NikpourPh.D. Candidate, Department of Economics, Faculty of Management and Economics, Shahid Bahonar university of kerman, Kerman, Iran.Mojtaba BahmaniAssistant Prof., Department of Economics, Faculty of Management and Economics, Shahid Bahonar university of kerman, Kerman, Iran.Sayyed Abdolmajid JalaeeProf., Department of Economics, Faculty of Management and Economics, Shahid Bahonar university of kerman, Kerman, Iran.Mehdi NejatiAssistant Prof. of Economics, Faculty of Management and Economics, Shahid Bahonar university of kerman, Kerman, Iran.Journal Article19700101This article investigates the financial convergence between Iran, OPEC & the Shanghai Organization trade groups, of which Iran is a member. The analysis covers the period of 2005 to 2017.In order to examine the convergence dynamics of these financial markets; we have employed the Philips and Sul (2007) methodology, which uses a nonlinear time-varying factor model. This paper provides a comprehensive picture of the financial systems within Iran and its convergence clubs by testing the convergence of their money market with domestic credit to private sector by banks (% of GDP), deposit and lending interest rate, real interest rate, and capital market with Stocks traded, total value (% of GDP). The empirical findings show that money and stock markets of OPEC and the Shanghai group do not form a homogenous convergence club. Results show that Iran has convergence with some countries in OPEC and the Shanghai group in money and stock markets, which can be explained by their similar economic indicators in both markets. Furthermore, the convergence speed between Iran and the Shanghai countries is higher than that of Iran and OPEC countries, which proves that joint trade agreements are stronger reasons for convergence than the oil factor. Iran should implement further structural reforms in order to achieve greater financial convergence with its joined groups.https://www.ijfifsa.ir/article_101118_2ef5e4b05bebf9ef1b513a798af9225b.pdfIran Finance AssociationIranian Journal of Finance2676-63372419991201Investigating the Relationship between Managerial Entrenchment and Internal Control Weakness (Operant Conditioning Behavior Theory Test)10613210111910.22034/ijf.2019.194923.1051ENMostafa MaskaniPhD. Candidate, Department of Accounting, Islamic Azad University, Shahrood Branch, Shahrood, Iran.Mohammadreza AbdoliAssociate Prof., Department of Accounting, Islamic Azad University, Shahrood Branch, Shahrood, Iran.Journal Article19700101Purpose: In the shadow of separation of the ownership from the control and the problem of representation arising from it in the modern business world, there is a need to pay attention to the CEOs' approaches toward takeover as decision makers in this area. Managerial entrenchment is considered as one of the consequences of separation of ownership from control that explains the difference between the incentives in the corporate management and causes a disturbance in internal control as a communication mechanism between the corporate's performance and the capital market. Paying attention to operant conditioning behavior like tournament incentives as a functional behavioral stimulus in CEOs reduces the profit-seeking attitudes among them and increases the effectiveness of the corporates' performance mechanisms in disclosing financial reporting. The purpose of this research is to study the relationship between the managerial entrenchment and the internal control weakness by operant conditioning behavior theory test.<br /> Design/methodology/approach: In this research, 95 companies listed in Tehran Stock Exchange were evaluated between 2013 and 2018. Considering the duality of internal control assessment, logistic regression in SPSS software was used in this research.<br /> Findings: Results of the research showed that there is positive and significant relationship between the managerial entrenchment and the internal control weakness. But there is a negative and significant relationship between the tournament incentive and the internal control weakness. Moreover, it was found that the negative relationship between the managerial entrenchment and the corporates' internal control is mediated by the tournament incentive.<br /> Originality/value: Considering that little attention has been paid to motivational issues of the CEOs under the representation theory over the past few years, the present research attempts to investigate managerial entrenchment approach with the effectiveness of internal controls through analysis of the operant conditioning behavior theory to provide more reliable experimental results for the investors and the shareholders.https://www.ijfifsa.ir/article_101119_2ca3ff744ea7bca0d435b43cb74ccadf.pdf