A Systematic Reexamination of the Drivers and Consequences of Institutional Investor Destructive Behavior: System Representation and Dynamic Modeling
Quarterly Journal of Securities Exchange

Quarterly Journal of Securities Exchange

A Systematic Reexamination of the Drivers and Consequences of Institutional Investor Destructive Behavior: System Representation and Dynamic Modeling

Document Type : Original Article

Authors
Seyyed abbas borhani 1
Rouhollah jaberi fordoei 2
Zohreh hajiha 3
Mostafa khaje 4
1 Department of Accounting ,QO.C, Islamic Azad University Qom ,Iran
2 Department of Accounting, ,QO.C,Islamic Azad University, Qom, Iran
3 Department of Accounting , ST.C., Islamic Azad University, Tehran, Iran
4 Department of Indusrial Managment, ,QO.C,, Islamic Azad University, Qom, Iran
10.22034/jse.2025.12491.2336
Abstract
Institutional investors' behavior, as a fundamental link in the chain of macroeconomic decision-making, plays a decisive role. These behaviors sometimes transcend the boundaries of economic rationality and enter the realm of destructive behaviors. A systematic understanding of the drivers and consequences of these behaviors is essential for unlocking the complex puzzle of economic interactions.

This study, considering its exploratory research approach and qualitative methodology, employs thematic analysis.

The literature on destructive behavior among institutional investors was reviewed. Then, qualitative data were collected through interviews with 15 experts and university professors with professional experience in the capital market in 2023. After analyzing the interviews, the collected qualitative data were coded and analyzed using the Attride-Stirling thematic analysis method and MAXQDA software. In the quantitative section, systemic representation modeling was used to determine the drivers and consequences of destructive behaviors among institutional investors.

The research findings identified two overarching themes (judgment-based destructive behaviors and perception-based destructive behaviors), 10 organizing themes (reference point, overconfidence, reliance on analysis in stock market transactions, locus of control, one-dimensional analysis and adverse effects, limited attention, structured corruption, short-term psychological shocks, stereotypical behaviors, and self-serving behaviors), and 33 basic themes.

The most influential driver of destructive behavior among institutional investors is structured corruption, which stems from the pattern of perception-based destructive behaviors and can lead to one-dimensional analysis and adverse effects. Institutional investors can utilize the findings of this study to systematically redefine their behaviors within a structured framework.
Keywords
Judgmental destructive behaviors
Perceptual destructive behaviors
Institutional investors
Capital market
Subjects
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Quarterly Journal of Securities Exchange
Volume 18, Issue 71
Autumn 2025
Pages 143-184