Identifying the Influential Factors on Financial Behavior of Investors in Emerging Markets

Abstract

The objective of this study is to identify the key factors influencing the financial behavior of investors in emerging markets using a qualitative approach. This research was conducted using a qualitative research method with a qualitative content analysis approach. Data were collected through semi-structured interviews with 31 active investors in emerging markets in Tehran. Purposive sampling was applied, and interviews continued until theoretical saturation was reached. The collected data were analyzed using NVivo software through open, axial, and selective coding techniques. The findings revealed that investors' financial behavior is influenced by four main categories: individual factors, market-related environmental factors, organizational and managerial factors, and the impact of emerging technologies. Among individual factors, psychological traits such as financial confidence, financial knowledge, and investment experience played a crucial role. Regarding environmental factors, market volatility and economic and political uncertainties had the most significant impact on investors' decisions. At the organizational level, financial reporting transparency and incentive policies influenced investor trust. Additionally, the use of emerging technologies such as artificial intelligence and big data analysis improved financial decision-making. This study demonstrated that a combination of individual, environmental, organizational, and technological factors contributes to shaping investors' financial behavior in emerging markets. Understanding these factors can help policymakers and financial managers develop optimal strategies to reduce investment risks and enhance investor confidence.