Evaluation of the Impact of Virtual Support in the Creation of Herding Behavior (Stock Trading) in Tehran Stock Exchange
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

Evaluation of the Impact of Virtual Support in the Creation of Herding Behavior (Stock Trading) in Tehran Stock Exchange

Authors
mojtaba farrokhi ostad
mostafa Farrokhi ostad
mahdieh alisoufi
10.22034/jse.2016.11073
Abstract
In new era, purchase and communication behavior of consumers is influenced by social networks. In to purchasing of goods or services, consumers use information about their purchase and motivate and develop their purchase behavior. Such networks lead to create groups and virtual communities that effect on their decisions and behaviors in order to make transactions.
This study is to evaluate the effect of virtual support in the creation of herding behavior in Tehran Stock Exchange in 2015-2016. The population of this research consists of investors who use social media and social networks. The sample in this study is consisted of 400 investors in Tehran Stock Exchange that use of exchange and OTC telegram groups.
The sample: group was randomly selected from different groups and distributed questionnaires among them. The Data analysis software was SPSS 19 and lisrel8.5.
The results of this research shows that all aspects of the virtual support is effective in formation of herding behavior, thus creating virtual support is effective in the herding behavior.
Hence, this research assumes that investors in their decision have been affected by the decisions of the others (in this study, affected by decisions of virtual groups), even if in groups and virtual networks.
Keywords
Herding Behavior
Social Networks
Virtual Support