The survey on the Relationship between Investor Characteristics and their Loss Aversion Coefficient in Tehran Stock ExchangeAbstractThe present study, after calculating the Loss aversion coefficient of active investors in Tehran Stock Exchange, investigated the relationship between variables of gender, analysis tools, age, marriage, experience and education with Loss Aversion Coefficient by pooling regression method. The sample included 403 investors who responded twice to research questions within 6 months.The results showed that there is a significant relationship between gender, type of analysis and education with investors Loss Aversion Coefficient, these variables are inversely correlated with the Loss Aversion Coefficient in Tehran Stock Exchange, in other words, females are statistically more loss averse than males, also loss aversion decrease with increasing education more over fundamental analysts are more loss averse than technical analysts.

In this paper, a demand response (DR) model has been proposed based on the loss aversion concept. Loss aversion refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Meanwhile, DR programs are classified into two main clusters: incentive-based programs (participated customers receive incentives) and price-based programs (participated customers in some periods are faced by high electricity price which is interpreted as loss for them). Regarding this matter, loss aversion concept is completely fitted for including in the DR model. MATLAB software is used to implement the proposed DR model. The data is extracted from New England ISO. Two different DR programs are considered for the numerical study, with and without consideration of the loss aversion. It is shown that the behavioral characteristics of the customers, loss-aversion in this case, is indispensable in the selection of the proper program.

Given the importance of the growth and development of the capital market in a country, knowing the factors that affect people's equity investment can help Capital market development and growth. Myopic Loss Aversion (MLA) is one of the factors introduced by Benartzi and Thaler (1995). In this regard, the present study, after measuring myopia and the loss aversion coefficient of real, active investors in the Tehran Stock Exchange, investigated the effect of Myopic Loss Aversion on equity investing by pooling regression method. The sample consisted of 403 investors who answered the research questions twice in 6 months in 2018. The results of this study indicate that the median value of the loss aversion coefficient for investors is 2.17. The results of this research show that more myopic loss-averse investors that more change and evaluate their stock portfolios; invest less in stocks and more myopic loss-averse investors that less change and evaluate their stock portfolios; invest more in stocks This finding is consistent with the theory of Myopic Loss Aversion. The findings also showed that men invest more in equities than women and fundamental analysts less than technical analysts. This study emphasizes the importance of myopic loss aversion in the stock market and considers the reduction of myopic loss aversion as a factor in increasing equity investment.

In mainstream economics, people make decisions based on a rational model based on the cost-benefit logic. However, the behavioral attitude, as the outcome of the teachings of behavioral economics, posits that decisions are not made in the real world by real individuals about real issues as defined in the rational models of decision-making (Cost-benefit); rather, the decision-making process is influenced by biases.
One of the theories in the field of behavioral economics that deals with the effect of these biases on individuals’ decisions is the prospect theory, which focuses on the effect of loss aversion bias on the decision-making process. This study investigates the effect of loss aversion bias on the legislature’s decision-making based on the prospect theory and the teachings of behavioral economics.
The findings of this article confirm the existence of loss aversion bias-based thinking in the Iranian civil liability system, including the enacting of appropriate means of litigation, foundations of liability, and principles and rules of loss compensation. Using the prospect theory, this article seeks to find the traces of bias of loss aversion and evaluate the position of this bias in the liability system in order to provide a more realistic picture of the legislator’s decision-making.

The purpose of this study is to investigate the effect of loss-aversion behavior on multi-period investment decisions. For this purpose, two models of portfolio optimization have been designed. Instead of a single-period portfolio model, a three-period model has been used. In order to bring the optimization models closer to the real world, in addition to the CVaR as one of the main constraints, the transaction cost and the lower bound and upper bound investment in each asset are also considered. two models of loss aversion and mean-CVaR optimization were solved using PSO algorithm. Also, some important criteria such as initial loss aversion coefficient and reference point are used to test the robustness of model. The results based on the optimal wealth and Sharp ratio showed that loss-averse investors tend to concentrate most of their wealth and have a better performance than rational investors. The impact of CVaR on investment performance was identified. When the market is falling, investors with higher risk aversion avoid extreme losses and obtain more gains.

The aim of this study was to "study behavioral factors in the selection of optimal portfolio Iran capital market" is. In order to achieve this goal, the dominant factors for mental accounting and loss aversion behavior and investment in stock and optimal portfolio selection with high efficiency compared to standard finance Using data from 106 firms listed in the Tehran Stock Exchange during the period of 5 years from 2011 to 2014 And regression analysis, variance analysis, was measured.The results showed that the expected return on portfolio behavioral model with an emphasis on mental accounting and loss aversion (as an indicator of behavioral factors) is greater than the expected return of the Standard Model and The hypothesis was accepted.

The efficient market hypothesis is based on the assumption that investors behave rationally, but studies in behavioral finance have contradicted this notion. The irrationality of investor behavior can be attributed to risk in less efficient markets, which can lead them to make decisions based on emotions. These emotional decisions impact firm performance. This study is to determine the influence of two investor behaviors, "loss aversion" and "overconfidence," on the performance of companies listed on the Tehran Stock Exchange. Loss aversion serves as an indicator of negative emotions, while overconfidence serves as an indicator of positive emotions. This study, to the best of our knowledge, is among the initial research in Iran's financial field to utilize loss aversion and overconfidence as indicators of negative and positive emotions, respectively. Based on these objectives, two hypotheses were developed in this study. The statistical population of this research consists of companies listed on the Tehran Stock Exchange (TSE). Data required for the statistical analysis were obtained from various sources, including the Rahvard Novin software, the TSE Technology Management Company website, and the financial statements of the companies. To test these hypotheses, a sample of 156 companies, listed on the Tehran Stock Exchange between 2013 and 2020, was selected using the screening method. The research questions were answered using the panel data method, descriptive statistics, correlation analysis, and multivariate regression model. The findings shed light on the correlation between investors' behavior and the performance of companies on the TSE. The study reveals a strong negative correlation between investors' loss aversion and the economic performance of companies. This suggests that more loss-averse investors tend to contribute to the lower economic performance of companies. Furthermore, the study shows a positive correlation between investors' overconfidence and market performance. This suggests that companies with more confident investors tend to perform better in the market. Interestingly, the study also found that Iranian investors tend to be more overconfident than risk-averse, meaning that their overconfidence outweighs their tendency to be loss-averse. This generally optimistic attitude of investors in the TSE has a positive impact on the overall market performance by encouraging investment and boosting market confidence. Loss aversion bias can lead investors to hold onto loss-making investments due to their fear of realizing losses. Pessimism and unfavorable stock market conditions may cause investors to prioritize avoiding losses over making strategic investment choices, ultimately reducing the economic performance of the company. Additionally, the overconfidence bias can cause investors to underestimate the risks associated with assets, leading them to base their investment decisions solely on simple criteria they deem important in their minds, without exercising sufficient care and attention. The rise in demand may lead to an increase in the securities' price, ultimately enhancing the overall value of the company.

The publication of financial statements, a vital corporate communication tool, significantly influences behavioral biases in both individuals and organizations. While the importance of behavioral factors for investors is well recognized, the impact of financial statement releases on these biases in the Iranian capital market has yet to be thoroughly examined. This study investigates the effect of financial statement releases on two key biases: loss aversion and overconfidence among investors. By employing both quantitative and qualitative research methods, comprehensive data was collected from the Iranian stock market. For the analysis of loss aversion, a sample of 111 companies over six years (2017–2022) was selected using the systematic elimination method, while overconfidence bias was assessed at the market level. An event study method was used to measure the impact of financial statement releases on these biases. To analyze loss aversion, a regression model using the Dynamic Panel Data (GMM) method was applied, and for overconfidence, a Vector Autoregression (VAR) model was estimated during the financial statement release period at the market level. The findings show that investor’s exhibit heightened loss aversion during financial statement releases, and overconfidence bias was also evident, with investors attributing positive market outcomes to themselves and acting more aggressively in subsequent transactions. Based on the results, investors should consider behavioral bias patterns in their decision-making and incorporate technical analysis. Additionally, companies should ensure transparency and accuracy in their financial statements while remaining attentive to market behaviors and reacting promptly to changes.

This study explains the individual’s behavior toward profits and losses contained in differently framed combined incentive contracts. Individual’s risk preferences and loss preferences are measured using Holt and Laury (2002) measure of risk aversion and Brink and Rankin (2013) measure of loss aversion, respectively. The last measure was adjusted with compensation characteristics in Iran. The relationship between these preferences and individual’s behavior under economically equivalent contracts of different frames is examined using experiment. Participating 92 subjects as well as conducting four separate experiments, the result indicated that there is a negative relationship between loss aversion and accepatance of contracts which have penalty component. Also, subjects preferred the first clawback contract (bonus>penalty) rather than the second clawback contract (bonus

The present study first investigates the asymmetry of speedup - delay (gain and loss) and Sign Effect in Tehran Stock Exchange, then examine the effect of gender on the discount rate and explain it with the loss aversion. The sample is 403 investors in Tehran Stock Exchange, and the nonparametric Tests are used to test the research hypotheses. The research results show that there is an asymmetry of speedup - delay in the Tehran Stock Exchange, which means; for gains, investors delay premium (a discount rate) is larger than the speed-up cost (a discount rate) and for losses; the discount rates of speed-up are larger than discount rates of delay. Also, the findings of this study indicate that there is a Sign effect in the Tehran Stock Exchange; in other words, the discount rate of gains is greater than the discount rate of losses. This study also finds that gender is correlated with discount rates, which that means; women have a higher discount rate for the delay in gains and lower discount rate for the delay in losses, which is due to their higher loss aversion than men. These anomalies are incompatible with the traditional discount model predictions, which is widely used in financial matters and assumes a constant discount rate.