Analyzing the Impact of Analytical Paralysis on Investors' Decisions in the Tehran Stock Exchange

An investment-making decision is a multifaceted process that requires the investor's precision, punctuality, and timely decision. This process is influenced by future expectations and the analysis of several factors the investor must consider to achieve a specific goal. Paralysis in the analysis of these factors causes a delay in obtaining profits or the realization of unwanted losses. Therefore, the main goal of the current study is to investigate the effect of the dimensions of the analysis paralysis on investors’ decisions in the Tehran Stock Exchange.

To collect data and information, libraries, interviews, and field methods were used simultaneously. For data analysis in the qualitative section of the research, the Fuzzy Delphi method, Excel, and MaxQDA software were employed. In the quantitative section, structural equation modeling and Smart PLS software were utilized. The Fuzzy Delphi method was used to analyze the qualitative data. After extracting the indices and influential variables in the model and thematic analysis, the initial influential variables were identified and presented to the experts in the form of a questionnaire to gather their opinions. Then, their answers were classified and the lack of agreement was announced. This process was repeated until a consensus was reached and the way of quantifying and measuring specific research variables in four political, social, cultural and economic dimensions were examined and analyzed.

According to the results of the Delphi section, the final research model was approved with two variables of analytical paralysis and investors’ decisions. The results of path coefficients showed a negative and significant relationship between analysis paralysis and investors' decisions, although there was a negative and significant relationship with investors' short-term decisions, with no significant relationship with investors' long-term decisions. Among the dimensions of analysis paralysis, the political dimension has the greatest impact on the analytical paralysis of investors' decision-making. Then the economic, social and cultural dimensions have respectively the greatest effect on the analytical paralysis of investors' decision-making.

The findings showed that analytical paralysis caused by abundant and fleeting data and political, economic, social and cultural instability will cause different behaviors among investors and these behaviors will affect people's investment decisions. In other words, analytical paralysis will increase the instability of investors in the decision-making process. Faced with such factors, investors will not be able to react appropriately and avoid deviations in decision-making in the short term. For this reason, in the conditions of abundant and unstable data affecting decision-making, changing from short-term decisions to long-term decisions can have fewer negative effects. Therefore, it is suggested that the trustees of the capital market reduce the analytical paralysis of the investors by informing and providing reliable and timely information to the society and help them in the proper management of their capital.