An empirical study of factors affecting investors’ decisions in the Iranian Stock Market: A combined DEMATEL-ANP approach

Abstract

Techniques for picking stock are of great importance in stock markets. Identifying stock picking criteria and information required by investors can help investors to make rea- soned decisions and perform better than the market average. In this research, a com- bined approach of Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP) is conducted based on Iranian brokers' expert opin- ions, in order to explore factors affecting investors' decisions. This method analyzes in- teraction levels between factors affecting stock prices in order to structure an investment model that takes these interactions into consideration. The results obtained indicate that political factors have the greatest effect on Iranian investors' decisions, followed by other investors' recommendations and then herd behavior factors. On the contrary, the use of personal and scientific analysis is uncommon.