Identifying the Components of a Model of Factors Affecting the Selection of Investment Strategies in Investment Companies

Arsalan  Ahmadali; Faegh Ahmadi; Seyed Nima  Valinia; Morteza  Bavaghar

Authors

Arsalan Ahmadali Ph.D. Student, Department of Accounting, Qe.C., Islamic Azad University, Qeshm, Iran Author https://orcid.org/0000-0002-9196-5099
Faegh Ahmadi Department of Financial Management, Qe.C., Islamic Azad University, Qeshm, Iran https://orcid.org/0000-0002-3529-3507
Seyed Nima Valinia Department of Accounting, Qe.C., Islamic Azad University, Qeshm, Iran Author https://orcid.org/0009-0006-7550-0044
Morteza Bavaghar Department of Accounting, BA.C., Islamic Azad University, Bandar Abbas, Iran Author https://orcid.org/0009-0009-1764-747X

Keywords:

Investment Strategy Selection, Investment Companies, Adaptive Strategies, Portfolio Management, Financial Decision-Making, ESG Investment, Risk Management

Abstract

The present study aimed to identify and explain the components of a model of factors affecting the selection of investment strategies in investment companies using a Grounded Theory approach. This study was conducted using a qualitative methodology based on the systematic Grounded Theory approach. The statistical population consisted of financial experts, investment managers, portfolio analysts, and specialists working in investment companies and financial institutions. Participants were selected through theoretical sampling, and data collection continued until theoretical saturation was achieved. In total, 12 in-depth semi-structured interviews were conducted with experienced professionals in the field of investment and financial management. Data were collected through face-to-face and online interviews and were analyzed simultaneously using open coding, axial coding, and selective coding procedures. More than 140 open codes were extracted and categorized into conceptual and thematic dimensions. The qualitative data analysis process was supported using MAXQDA software. To ensure trustworthiness, the study employed continuous comparison, theoretical memo writing, participant feedback, inter-coder agreement, and the Holsti reliability method. The findings revealed that the selection of investment strategies in investment companies is a multidimensional and adaptive process influenced by the interaction of causal, contextual, and intervening factors. Five major axial categories were identified, including investor characteristics, environmental and market conditions, institutional and structural factors, strategic investment actions, and investment outcomes. The core category extracted from the data was “adaptive strategies in selecting investment strategies under complex financial market conditions.” The results showed that investor risk tolerance, financial objectives, ethical preferences, market volatility, organizational culture, legal frameworks, economic trends, and global events significantly shape strategic investment decisions. Furthermore, investment companies respond to these conditions through strategies such as portfolio diversification, active portfolio management, contrarian investment, and value-based investment approaches. These adaptive strategies contributed to positive outcomes including increased returns, customer satisfaction, reduced investment risk, organizational learning, regulatory compliance, and identification of emerging investment opportunities.

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