Academia.edu no longer supports Internet Explorer.
To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser .
Enter the email address you signed up with and we'll email you a reset link.
- We're Hiring!
- Help Center
Behavioural corporate finance: existing research and future directions
2010, International Journal of Behavioural Accounting and Finance
Related Papers
Journal of Governance and Regulation
The aim of this research is to draw a theoretical line to connect on a common conceptual base, behavioural fi-nance with what is internationally known as Modern Finance. The debate often involves discussions about the prevalence of rationality over irrationality. This paper will address mainly two questions: as an economist, should I propend for traditional or for behavioural finance? And, perhaps more important, are they in opposition to each other? Linking the principles upon which the traditional theory of finance is based to behavioural finance appears also to be useful to better understand recent global turmoil in the world financial system. In finding such links, behavioural finance studies will help on driving research to define market models much closer to reality than they are today. Thus literature recognition will be carried out, starting from the most important contribution to fundamental analysis, value theory, going through modern portfolio theory and efficient market ...
JOURNAL OF SOCIAL SCIENCE RESEARCH
Bilgehan Tekin
Decision-making process is a multi-faceted and complex process. Decision making can be defined like a process of choosing from among a number of alternatives. It will not contribute enough to be fully understood and to effective decision making to be addressed only from the rational point of view. Behavioral finance is an integral part of the decision-making process. Individuals can improve their performance by recognizing the biases which discussed in the framework of behavioral finance. Understanding the possible negative effects of biases allows to the individuals to make better choices and they can avoid repeating the expensive errors in future. Result of investigations of behavioral biases on decision-makers in the firms, managerial bias issue has been raised. The studies show the effect of managerial biases on many financial decisions in firms. This paper investigated the role of biases such as overconfidence, loss aversion, optimism, anchoring, narrow framing, self-serving at...
Xinda ZHENG
International Journal of Accounting, Finance and Risk Management
atif sattar
Dr. Bashir Ahmad Joo
Investors are rational and that they consider all available information in portfolio investment decision process is the main assumption of standard finance and this holds true by Efficient Market Hypothesis (EMH), being an important theory of Standard finance. Over the years this assumption has been challenged by the psychologists and they argue that investors can’t be rational as their decisions are influenced by cognitive and psychological errors. The work done by the various prominent psychologists in this direction resulted in the development of a new branch of financial economics, known as Behavioural Finance. Behavioural finance considers how various psychological traits affect the way investors make their investment decisions. Against this backdrop, in present paper a modest attempt has been made to review various studies in this area so as to have clear understanding of the subject and to see how significant it is in financial decision making. From the review of literature i...
International Business Research
Prince Gyimah
This paper examines the nexus between behavioural bias and investment decisions in a developing country context. Specifically, this study tests the effect of four behavioural biases (overconfidence, regret, belief, and “snakebite”) on investment decisions. Descriptive statistics and inferential statistics including multiple regression are used to examine the behavioural biases-investment decisions nexus. The study reveals that the four bias have a significant positive and robust relationship with investment decision making. The result also shows that the "snakebite" effect contributes more to the decision making, followed by belief bias then regret bias. Overconfidence bias, however, contributes the least effect on investment decisions. Our contribution confirms the prospect theory and that behavioural bias influences investment decisions in the developing country perspective.
Júlio Lobão
European Journal of Natural Sciences and Medicine
blerina dervishaj
International Journal of Technical Research & Science
Dr Chabi Gupta
Daiva Jureviciene , Egidijus Bikas
Behavioural finance is important at the individual as well as corporate levels. A lot of researches analysing corporate behavioural finance have been made in recent decades. However all are related to solutions of capital or debt financing problems, finding the best possible source of capital increase or the cheapest debt possibility. This article aims to evaluate corporate financial investment decisions made via experts' survey, trying to assess the main players in financial markets between non-financial companies, taking into consideration portfolio formation, motivation of investments, risk-return relationship, etc. The results show that Lithuanian non-financial companies are not very active in the financial market; they choose less risky (less profitable) short-term investments, keep a considerable amount in cash or time deposits, and strive to accumulate funds from financial investments for implementation of various projects related to their main company activities. Generally service companies, operating for more than five years and with sales volume exceeding 1.45 million Euros per year, are the main players in the financial market among non-financial companies.
RELATED PAPERS
Irhamkain Irham
Isti Afliza
La littérature au féminin
Nieves Ibeas-Vuelta
Nadeem Ashraf AIT-48
NORMA EDITH HERNANDEZ SANTIAGO
( IJOART.org ) - International Journal of Advancements in Research & Technology
Muhammad Adnan
GATR Global Journal of Business and Social Science Review (GJBSSR) Vol. 8(4) OCT-DEC 2020
S1_2_ ALDY DWI SAPUTRA
VirusDisease
Nagalingam Mohandoss
Mayra Yasmina Espinoza Arauz
Vincenzo Alastra
Revista Brasileira de Estudos Políticos
Marcos Camizola Soares
Mohamad Abbass
Dimensi Interior
Natasha Prasetya
Studies in Computational Intelligence
Muhammad Attique
Mexican Bioethics Review ICSA
Alejandro Pacheco Gómez
Scientific Reports
RODRIGO ARIEL AGUAYO
Case Reports in Clinical Pathology
Marcello Filotico
Acta Poloniae Pharmaceutica - Drug Research
Agnieszka Zakrzeska
Filologia e Linguística Portuguesa
Vaishnavi sundar
原版的成绩单制作 大学毕业证成绩单学位证留信网认证
iForest - Biogeosciences and Forestry
Marta Aleksandrowicz-Trzcińska
Annals of the New York Academy of Sciences
Emanuela Pedrazzini
Journal of Nutrition Education and Behavior
Cindy Wolff
Clinical Chemistry
Reijo Haapiainen
RELATED TOPICS
- We're Hiring!
- Help Center
- Find new research papers in:
- Health Sciences
- Earth Sciences
- Cognitive Science
- Mathematics
- Computer Science
- Academia ©2024
To read this content please select one of the options below:
Please note you do not have access to teaching notes, behavioural finance: the role of psychological factors in financial decisions.
Review of Behavioral Finance
ISSN : 1940-5979
Article publication date: 16 November 2012
The purpose of this paper is to introduce the special issue of Review of Behavioural Finance entitled “Behavioural finance: the role of psychological factors in financial decisions”.
Design/methodology/approach
The authors present a brief outline of the origins of behavioural economics; discuss the role that experimental and survey methods play in the study of financial behaviour; summarise the contributions made by the papers in the issue and consider their implications; and assess why research in behavioural finance is important for finance researchers and practitioners.
The primary input to behavioural finance has been from experimental psychology. Methods developed within sociology such as surveys, interviews, participant observation, focus groups have not had the same degree of influence. Typically, these methods are even more expensive than experimental ones and so costs of using them may be one reason for their lack of impact. However, it is also possible that the training of finance academics leads them to prefer methodologies that permit greater control and a clearer causal interpretation.
Originality/value
The paper shows that interdisciplinary research is becoming more widespread and it is likely that greater collaboration between finance and sociology will develop in the future.
- Decision making
- Behavioural finance
- Research work
Muradoglu, G. and Harvey, N. (2012), "Behavioural finance: the role of psychological factors in financial decisions", Review of Behavioral Finance , Vol. 4 No. 2, pp. 68-80. https://doi.org/10.1108/19405971211284862
Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited
Related articles
We’re listening — tell us what you think, something didn’t work….
Report bugs here
All feedback is valuable
Please share your general feedback
Join us on our journey
Platform update page.
Visit emeraldpublishing.com/platformupdate to discover the latest news and updates
Questions & More Information
Answers to the most commonly asked questions here
IMAGES
VIDEO
COMMENTS
Behavioural finance is a multidisciplinary field that combines insights from psychology and economics to examine how cognitive biases, emotions, and social influences affect investor decision-making in financial markets. This paper provides an overview of the key concepts, theories, and empirical findings in behavioural finance.
Design/Methodology/Approach: The study used a literature review method understanding the heuristics and biases central to behavioural finance and advocacy to make investment decisions. The paper ...
Conlisk (1996) presented a number of papers dealing with limited rationality; Duxbury (2015) made a research of perceptions provided by experimental studies examining financial decisions and market behavior; whereas Libby et al. (2002) compiled a series of experimental papers in finance to illustrate how experiments can be conducted successfully.
Explore the latest full-text research PDFs, articles, conference papers, preprints and more on BEHAVIORAL FINANCE. Find methods information, sources, references or conduct a literature review on ...
Behavioral finance is a newly developed sub-discipline of Behavioral Economics. The main aim. of behavioral finance is to understand how people make their investment decision and how they. behave ...
Abstract. This article aims to elaborate a systematic literature review (SLR) on the subject of experiments in behavioral finance, including papers published between 2014 and 2018. Methodology involved the careful selection of articles published in Web of Science and Scopus databases, and bibliometric analysis was applied.
That behavioral finance has revolutionized the way we think about investments cannot be denied. But its intellectual appeal may lie in its cross-disciplinary nature, marrying the field of investments with biology and psychology. This literature review discusses the relevant research in each component of what is known collectively as behavioral finance.
This paper delves into the realm of behavioural finance, exploring the psychological and emotional factors ... Behavioural finance is a part of money that deals into the mental and emotional elements impacting investment ... Research methodology: In this paper a mixed approach is followed where the existing literature along with primary data is ...
©2019IJNRD|Volume4,Issue7July2019|ISSN:2456-4184 IJNRD1907016 InternationalJournalofNovelResearchandDevelopment(www.ijnrd.org) 108 PRIMARYDATA ...
Journal of Behavioral Finance, Volume 25, Issue 2 (2024) See all volumes and issues. Volume 25, 2024 Vol 24, 2023 Vol 23, 2022 Vol 22, 2021 Vol 21, 2020 Vol 20, 2019 Vol 19, 2018 Vol 18, 2017 Vol 17, 2016 Vol 16, 2015 Vol 15, 2014 Vol 14, 2013 Vol 13, 2012 Vol 12, 2011 Vol 11, 2010 Vol 10, 2009 Vol 9, 2008 Vol 8, 2007 Vol 7, 2006 Vol 6, 2005 ...
Behavioural finance is a new. field which explains the economic decisions of people. It is a field which combines behavioural and. cognitive psychological theories with conventional economics and ...
Peer Review Policy: All research articles in Journal of Behavioral Finance have undergone rigorous peer review, based on initial editor screening and anonymous refereeing by two anonymous referees. Publication office: Taylor & Francis, Inc., 530 Walnut Street, Suite 850, Philadelphia, PA 19106. Authors can choose to publish gold open access in ...
1. Introduction. The traditional finance theory assumes that investors always make rational decisions based on complete information, but behavioral finance argues that investors are influenced by their emotions, biases, and cognitive limitations (Almansour & Arabyat, Citation 2017).The debate between modern finance theory and behavioral finance theory on the influence of non-financial factors ...
Behavioural finance is important at the individual as well as corporate levels. A lot of researches analysing corporate behavioural finance have been made in recent decades. However all are related to solutions of capital or debt financing problems, finding the best possible source of capital increase or the cheapest debt possibility.
The authors present a brief outline of the origins of behavioural economics; discuss the role that experimental and survey methods play in the study of financial behaviour; summarise the contributions made by the papers in the issue and consider their implications; and assess why research in behavioural finance is important for finance ...
this paper explores the evolution of modern behavioral finance theories from the traditional framework. ... anomalies and how human behaviour and psychology can create inefficiencies and mispricing within the market. Behavioral Finance is not just a part of finance but is broader and wider in scope and includes insights from behavioral ...
Findings- This paper classifies the past literature on Behavioral finance and finds that the research work on. behavioral f inanceis still in demand in developed countries, and behavioral finance ...
Download full-text PDF Read full-text. Download full-text PDF. ... National Bureau of Economic Research, Working Paper No. 945. doi. 10.3386/w0945. ... Behavioural finance comprises three elements ...
A systematic review of ordinary people, behavioural financial biases. Abstract Behavioural Finance and Behavioural Economics are jointly fast-growing fields of research, which encompass both academicia and business. Therefore, the purpose of this paper is to study the…. Salience, chains and anchoring.
Behavioral Finance is an emerging field that combines the understanding of behavioural and cognitive psychology with financial decision making process. It is the fastest growing area in the field ...
Finally, this paper will draw unique conclusions across behavioural finance and psychological biases are likely to yield the most interesting research in the near future in India. View Show abstract