Identifying the Effective Factors on Investors Behavior and Developing a Measurement Model

The purpose of this study is to identify the components that affect investor behavior and develop a measurement model using the TOPSIS technique and confirmatory factor analysis approach. This correlational paper aims to identify the dimensions and structures influencing investor behavior. Initially, the TOPSIS technique is employed, followed by first-order confirmatory factor analysis and second-order factor analysis. The statistical population consists of individuals who have actively participated in the Tehran Stock Exchange for at least two years, with a sample size of 327. Convenience nonprobability sampling was utilized as the sampling method, and data was collected through a researcher-made questionnaire. Content validity was assessed through expert approval and Cronbach s alpha coefficient. The findings of this study reveal seven factors identified as influential factors on investor behavior, based on theoretical literature and research background, using the TOPSIS technique. Subsequently, using the confirmatory factor analysis approach, the research findings indicate that investor financial literacy and investor personality traits play the most significant role in investor behavior. Additionally, higher expected returns, rules and regulations, security, profitability, and position and location of investment are identified as the next influential priorities on investor behavior.