The Relationship between Population Parameters with Herding Behavior of Investors in the Tehran Stock Exchange

Probability of the effects of demographical factors such as ethnicity, geographical area and age range on the behaviors of investors in the stock market has not been studied as much as those of the financial and economic variables. This study aims at investigating the relationship between ethnicity, geographical area, and age range of investors and their Herd behaviors. Chung et al's formula was used for recognizing Herd behaviors. Based on their model, when the result of deviation of stock return from market return decreases; a Herd behavior appears. Research sample involved 388718 investors from Tehran Stock Exchange (TSE). The study was conducted during 2012- 2015. The obtained results revealed a significant relationship between ethnicity (except Arab ethnicity), geographical area (except the southern area), and age range; and Herd behaviors of investors