Phenomenology of The Abnormal Occurrence of Euphoria Phase in Tehran Stock Exchange

Document Type : Scientific paper

Authors

Department of Accounting, Sha.C., Islamic Azad University, Shahrood, Iran.

10.22080/mrl.2025.29918.2198

Abstract

The growing trend of stock price bubbles in financial markets, which is always a function of a series of interconnected drivers of uncontrollable, intermittent anomalies, has made investor behavior unpredictable based on classical rationality. Euphoria phenomenon, as one of the abnormal events of the financial market, refers to intermittent periods that, with the increase of excitement and extreme optimism, stimulate investors to obtain higher expected returns in order to make the most of the gap created in the cross-sectional value with the intrinsic value of the stock price due to the occurrence of such a phenomenon, regardless of what problems the market may face under the influence of such interactions. Therefore, due to the lack of sufficient knowledge of this concept in the capital market, the present study, through a phenomenological approach, seeks to present a paradigmatic model of the abnormal occurrence of the manic phase in the Tehran Stock Exchange. A methodological approach that can identify emerging aspects of this phenomenon through the ontological nature of the structure in the context of study. The tools used in implementing such an approach are interviews and a researcher-made scoring checklist to arrive at open codes, propositional themes, and paradigmatic categories. The participatory technique to achieve the aforementioned goals is to utilize focal panels that, through discussion and debate, can be effective in categorizing propositional themes in the formation of paradigmatic categories. The findings of the present study, by identifying "385" open codes from "19" interviews conducted, indicate the identification of "65" propositional themes in the form of a researcher-made scoring checklist, which, by assigning focal points to each of the separated actors in the specified evaluation panels, ultimately led to the presentation of a paradigmatic model by identifying "13" categories in the 5 dimensions of causal conditions, context, intervention, strategies, and consequences. The results obtained from the application of the paradigmatic model of the abnormal occurrence of the manic phase in the Tehran Stock Exchange indicate excessive optimism and unrealistic expectations of sudden changes in the price of a stock in financial markets without sufficient fundamental arguments as to why such short-term fluctuations occur, which, although they increase the trading volume in the short term, after reaching the saturation point, in accordance with the stock price bubble cycle in the financial market, causes the stock price to decline even to a price lower than its initial intrinsic value. At this point, the formation of stock supply queues causes the capital market to face stagflation, while stocks become illiquid and other investment opportunities are lost.

Keywords

Main Subjects

References

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Macroeconomics Research Letter
Volume 20, Issue 47
September 2025
Pages 107-143

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History

  • Receive Date: 25 August 2025
  • Revise Date: 01 November 2025
  • Accept Date: 11 November 2025

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