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:: Volume 33, Issue 115 (quarterly journal of economic research and policies 2025) ::
qjerp 2025, 33(115): 94-136 Back to browse issues page
The Role of Attention Economics on The Formation of Volatility in the Tehran Stock Exchange
Mahmoud Javaheri Zakir * , Fathollah Tari , Morteza Khorsandi
Department of Economics, Allameh Tabatabaei University , abasjavaher@yahoo.com
Abstract:   (664 Views)
Attention economics examines how individuals allocate their focus under conditions of limited information and plays a crucial role in analyzing financial behavior and capital markets. This field emphasizes the relationship between investors’ attention and market index fluctuations. In a study using data from June 2018 to June 2022 and the Generalized Method of Moments (GMM), the impact of investor attention indicators - such as Google search volume for listed companies and related news - on the Tehran Stock Exchange was investigated. The findings revealed that increases in Google searches and news queries had a positive and significant effect on trading volume and stock returns. Regarding price volatility, company name searches in Google showed a positive effect, while news searches had a negative effect. Therefore, investor attention indicators significantly influence stock market behavior and can serve as predictive tools in investment decisions and risk management. These results suggest that recorded data on investor attention can be a valuable complement to market analysis, enhancing the accuracy of financial decisions and improving risk control.
Keywords: Attention Economics, Attention Coordination, Information Economics, Fashions and Trends
Full-Text [PDF 705 kb]   (152 Downloads)    
Type of Study: Research | Subject: Special
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Javaheri Zakir M, Tari F, Khorsandi M. The Role of Attention Economics on The Formation of Volatility in the Tehran Stock Exchange. qjerp 2025; 33 (115) :94-136
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Volume 33, Issue 115 (quarterly journal of economic research and policies 2025) Back to browse issues page
فصلنامه پژوهشها و سیاستهای اقتصادی Journal of Economic Research and Policies
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