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A literature review on neurofinance

Author

Listed:
  • Guillaume Baechler
  • Laurent Germain

Abstract

Financial literature has taken to investigating individual investor behaviour. Some of the findings are quite puzzling, seeing as they are not consistent with classical models of rational behaviour. This is a challenge that has been partially solved by new models of investor behaviour in behavioural finance. Neurofinance has emerged as a new field since the late 1990s, seeking to understand the underlying aspects of financial decision-making. Psychology and neuroscience are some of the research fields that are merged in neurofinance to physiologically test finance theories. Our aim in this paper is to review the most prominent topics in neurofinance.

Suggested Citation

  • Guillaume Baechler & Laurent Germain, 2018. "A literature review on neurofinance," Finance, Presses universitaires de Grenoble, vol. 39(2), pages 9-41.
    • Handle: RePEc:cai:finpug:fina_392_0009
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