Abstract:

This study was carried out aimed to investigate the non-systematic risk on the investors' sentiment in selected companies listed in the Tehran Stock Exchange over the years 2011 to 2016. The panel data econometric method is used in this study. We will first examine the background of the study, while expressing the theoretical foundations related to non-systematic risk and investors' sentiment. Then, in the next step, the model is determined and estimated, that the results of different estimates confirm the random effects method for the final model of this study. According to the results of the estimation of the final model, there is a positive and significant relationship between the independent variables of the utility index, the ratio of tangible fixed assets and the company-specific risk, as well as the variables of market value to book value and the Z-Score variable have negative and significant effects on the investors' sentiment. Therefore, the main hypothesis of the research is confirmed. Finally, the recommendations based on the results of the study are presented along with suggestions for future studies.