The Research Department of Economics and Management of Tadbir Nikan Business, Marketing, and Finance Open 3092-6238 2 Serial Number 11 2025 09 01 Identifying the Factors Affecting the Relationship Between Investor Sentiment and Stock Price Volatility in the Iranian Capital Market Identifying the Factors Affecting the Relationship Between Investor Sentiment and Stock Price Volatility in the Iranian Capital Market 1 11 10.61838/bmfopen.202 EN Journal Article 2025 03 27 <p>This study, employing the qualitative grounded theory method, identifies the factors influencing the relationship between investor sentiment and stock price volatility in the Iranian capital market. The grounded theory approach is used to develop a comprehensive and systematic framework to understand the complex relationships between investor sentiment, stock price volatility, and the various influencing factors. This study identifies causal conditions, contextual factors, intervening variables, consequences, and strategies that shape the relationship between investor sentiment and stock price volatility. Findings indicate that causal conditions such as information asymmetry, exchange rate volatility, and tax and macroeconomic regulations play a significant role in affecting the relationship between investor sentiment and stock price volatility. Contextual factors such as market rumors, global oil price fluctuations, and political instability also have a profound impact on this relationship. This study further identifies intervening conditions such as investor education, fundamental analysis, and data analytics, which can mitigate the risks associated with stock price volatility. Additionally, the consequences of the relationship between investor sentiment and stock price volatility, including increased risk, economic and social pressure, and market stimulation, are examined. These consequences are referred to in this study under the title “Consequences Affecting the Relationship Between Investor Sentiment and Stock Price Volatility in the Iranian Capital Market.” This study presents a conceptual model for understanding the complex relationships between investor sentiment, stock price volatility, and the various influencing factors. The findings of this study have significant implications for investors, policymakers, and other stakeholders in the Iranian capital market.</p> https://www.bmfopen.com/index.php/bmfopen/article/download/202/187