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The Impact Of Behavioral Finance In Investment Decisions

Author

Listed:
  • Tugce TANRIKUT

    (Ankara Yildirim Beyazit University, Türkiye)

  • Ayhan KAPUSUZOGLU

    (Ankara Yildirim Beyazit University, Türkiye)

  • Nildag Basak CEYLAN

    (Ankara Yildirim Beyazit University, Türkiye)

Abstract

The concept of a rational investor is defined as the fact that investing individuals act based on a more fixed and straightforward idea. There are experts in the field of psychology who conduct detailed research on this subject by examining the behavior of individuals investing in Traditional Finance Theories. As a result of psychologists' studies, it is revealed that individuals who invest have personal biases and tendencies in their investment decisions. In this study, the relationship between behavioral finance and the biases of investing individuals in their investment decisions was reviewed.

Suggested Citation

  • Tugce TANRIKUT & Ayhan KAPUSUZOGLU & Nildag Basak CEYLAN, 2024. "The Impact Of Behavioral Finance In Investment Decisions," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 23(3), pages 11-16.
    • Handle: RePEc:pts:journl:y:2024:i::p3:11-16
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    References listed on IDEAS

    as
    1. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    2. Furnham, Adrian & Boo, Hua Chu, 2011. "A literature review of the anchoring effect," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 35-42, February.
    3. Fama, Eugene F, 1991. "Efficient Capital Markets: II," Journal of Finance, American Finance Association, vol. 46(5), pages 1575-1617, December.
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    Keywords

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    JEL classification:

    • G40 - Financial Economics - - Behavioral Finance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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