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Behavioral finance: Evolution from the classical theory and remarks

Author

Listed:
  • Roberto Arturo Agudelo Aguirre
  • Alberto Antonio Agudelo Aguirre

Abstract

Behavioral finance has emerged from the divergences observed to explain and address the traditional theories of finance and serves as supplement to classical finance by introducing behavioral aspects to decision‐making. This study provides academics with a comprehensible and complete synopsis of the evolution of behavioral finance, as well as critical insight is provided. The synopsis was based on the search for publications in Web of Science (WoS) and Scopus and the use of R, Gephi and Tree of Science ‐ToS‐ software, using citation analysis, graphos and classification analysis. The results showed psychological aspects, investment in stocks and cognitive biases with the highest visibility. A tree‐like structure of hierarchization was developed by ToS. The clusters of publications with the greatest literary contribution were analyzed and the publications with the greatest visibility in each cluster identified. This study provides insights into the current trend in finance towards better understanding of the essential factors in the investor´s decision making.

Suggested Citation

  • Roberto Arturo Agudelo Aguirre & Alberto Antonio Agudelo Aguirre, 2024. "Behavioral finance: Evolution from the classical theory and remarks," Journal of Economic Surveys, Wiley Blackwell, vol. 38(2), pages 452-475, April.
    • Handle: RePEc:bla:jecsur:v:38:y:2024:i:2:p:452-475
    DOI: 10.1111/joes.12593
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    References listed on IDEAS

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    2. Fabian Moodley & Sune Ferreira-Schenk & Kago Matlhaku, 2025. "The Effects of Investor Sentiment on Stock Return Indices Under Changing Market Conditions: Evidence from South Africa," IJFS, MDPI, vol. 13(2), pages 1-24, April.
    3. David Mumo Juma & Leonard Ogola & Catherine Elsa Aringo, 2024. "An Examination into the Linkage Between Production Theory and Capital Structure of a Firm," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 5(1).
    4. Edda Claus & F. Antoine Dedewanou, 2024. "Expectations, beliefs, and perceptions in the modern economy: An overview," Journal of Economic Surveys, Wiley Blackwell, vol. 38(2), pages 297-302, April.

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