BEHAVIORAL FINANCE PSYCHOLOGY: A REVIEW PAPER

Authors

  • Mohit Fogaat
  • Sangeetha Sharma
  • Dr. Rajendra Prasad Meena

Keywords:

Behavioral finance, Behavioral economies, Traditional finance, Modern finance.

Abstract

This investigation will seek for and evaluate research publications on the subject of behavioural finance that have been published in a methodical manner in order to accomplish its goals. A fresh researcher who may be interested in the topic of behavioural finance may benefit from the findings of this study. This study includes 55 articles from the Journal of Behavioral Finance, 125 research articles linked to the field of behavioural finance, and about 300 authors' contributions to the field. In our research papers, we provide a number of research articles on behavioural finance that are on the cutting edge of the subject and are helping to establish behavioural finance as an important area of study. We did not include any extremely old behavioural finance research papers in our analysis since they were considered too old. It does not imply that previous researchers did not make significant contributions to the area of behavioural finance, but rather that the motivations for what has occurred in recent years are more relevant to new researchers than very old studies in the field of behavioural finance. In our study, we gathered data from 125 research articles from Elsevier and emerald publications, among other open access platforms. These databases served as a tool for analyzing the research articles in question.

References

F.-M. Toma, “Behavioral Biases of the Investment Decisions of Romanian Investorson the Bucharest Stock Exchange,” Procedia Econ. Financ., vol. 32, no. 15, pp. 200–207, 2015, doi: 10.1016/s2212-5671(15)01383-0.

P. Bossaerts and C. Murawski, “From behavioural economics to neuroeconomics to

decision neuroscience: The ascent of biology in research on human decision making,”

Curr. Opin. Behav. Sci., vol. 5, pp. 37–42, 2015, doi: 10.1016/j.cobeha.2015.07.001.

L. Rey-Ares, S. Fernández-López, S. Castro-González, and D. Rodeiro-Pazos, “Does self-control constitute a driver of millennials’ financial behaviors and attitudes?,” J. Behav. Exp. Econ. , vol. 93, 2021, doi: 10.1016/j.socec.2021.101702.

A. Gradinaru, “The Contribution of Behavioral Economics in Explaining the Decisional Process,” Procedia Econ. Financ., vol. 16, no. May, pp. 417–426, 2014, doi: 10.1016/s2212-5671(14)00821-1.

I. Galavotti, A. Lippi, and D. Cerrato, “The representativeness heuristic at work in decision-making: building blocks and individual-level cognitive and behavioral factors,” Manag. Decis., vol. 59, no. 7, pp. 1664–1683, 2021, doi: 10.1108/MD-10-

-1464.

F. Angela-Maria, P. A. Maria, and P. M. Miruna, “An Empirical Investigation of Herding Behavior in CEE Stock Markets under the Global Financial Crisis,” Procedia Econ. Financ., vol. 25, no. 15, pp. 354–361, 2015, doi: 10.1016/s2212-

(15)00745-5.

J. Zhong and X. Zhao, “Modeling Complicated Behavior of Stock Prices Using Discrete Self-Excited Multifractal Process,” Syst. Eng. Procedia, vol. 3, no. 2011, pp. 110–118, 2012, doi: 10.1016/j.sepro.2011.11.015.

R. Shanmugham and K. Ramya, “Impact of Social Factors on Individual Investors’ Trading Behaviour,” Procedia Econ. Financ., vol. 2, no. Af, pp. 237–246, 2012, doi: 10.1016/s2212-5671(12)00084-6.

C. Frydman and C. F. Camerer, “The Psychology and Neuroscience of Financial Decision Making,” Trends Cogn. Sci., vol. 20, no. 9, pp. 661–675, 2016, doi: 10.1016/J.TICS.2016.07.003.

S. Raheja and B. Dhiman, “How do emotional intelligence and behavioral biases of investors determine their investment decisions?,” Rajagiri Manag. J., vol. 14, no. 1,

pp. 35–47, 2020, doi: 10.1108/ramj-12-2019-0027.

T. Robin and M. Bierlaire, “Modeling investor behavior,” J. Choice Model., vol. 5, no. 2, pp. 98–130, 2012, doi: 10.1016/S1755-5345(13)70054-X.

I. Klioutchnikov, M. Sigova, and N. Beizerov, “Chaos Theory in Finance,” Procedia Comput. Sci., vol. 119, no. 2017, pp. 368–375, 2017, doi: 10.1016/j.procs.2017.11.196.

S. Kapoor and J. M. Prosad, “Behavioural Finance: A Review,” Procedia Comput. Sci., vol. 122, pp. 50–54, 2017, doi: 10.1016/j.procs.2017.11.340.

M. Yurttadur and H. Ozcelik, “Evaluation of the Financial Investment Preferences of Individual Investors from Behavioral Finance: The Case of Istanbul,” Procedia Comput. Sci., vol. 158, pp. 761–765, 2019, doi: 10.1016/j.procs.2019.09.112.

M. Jlassi, K. Naoui, and W. Mansour, “Overconfidence Behavior and Dynamic Market Volatility: Evidence from International Data,” Procedia Econ. Financ., vol. 13, no. December 2013, pp. 128–142, 2014, doi: 10.1016/s2212-5671(14)00435-3.

C. Oprean and C. Tanasescu, “Effects of Behavioural Finance on Emerging Capital Markets,” Procedia Econ. Financ., vol. 15, no. 14, pp. 1710–1716, 2014, doi: 10.1016/s2212-5671(14)00645-5.

C. Oprean, “Effects of Behavioural Factors on Human Financial Decisions,” Procedia Econ. Financ., vol. 16, no. May, pp. 458–463, 2014, doi: 10.1016/s2212- 5671(14)00825-9.

S. Kumar, S. Rao, K. Goyal, and N. Goyal, “Journal of Behavioral and Experimental Finance: A bibliometric overview,” J. Behav. Exp. Financ., vol. 34, p. 100652, 2022,

doi: 10.1016/j.jbef.2022.100652.

J. Tuyon and Z. Ahmad, “Behavioural finance perspectives on Malaysian stock market efficiency,” Borsa Istanbul Rev., vol. 16, no. 1, pp. 43–61, 2016, doi: 10.1016/j.bir.2016.01.001.

I. Barreda-Tarrazona, A. García-Gallego, J. García-Segarra, and A. Ritschel, “A gender bias in reporting expected ranks when performance feedback is at stake,” Journal of Economic Psychology, vol. 90. 2022, doi: 10.1016/j.joep.2022.102505.

J. Nikkinen and J. Peltomäki, “Crash Fears and Stock Market Effects: Evidence From Web Searches and Printed News Articles,” J. Behav. Financ., vol. 21, no. 2, pp. 117– 127, 2020, doi: 10.1080/15427560.2019.1630125.

A. Guzavicius, V. Gižienė, and L. Žalgirytė, “Education As Public Good: Behavioral Economics Approach,” Procedia - Soc. Behav. Sci., vol. 191, pp. 884–889, 2015, doi: 10.1016/j.sbspro.2015.04.401.

C. W. Senarathne, “Do Fama–French common risk-factor portfolio investors herd on a daily basis? Implications for common risk-factor regressions,” J. Cap. Mark. Stud., vol. 3, no. 2, pp. 137–156, 2019, doi: 10.1108/jcms-06-2019-0034.

R. Isidore R and P. Christie, “The relationship between the income and behavioural biases,” J. Econ. Financ. Adm. Sci., vol. 24, no. 47, pp. 127–144, 2019, doi: 10.1108/JEFAS-10-2018-0111.

A. Ah Mand, H. Janor, R. Abdul Rahim, and T. Sarmidi, “Herding behavior and stock market conditions,” PSU Res. Rev., 2021, doi: 10.1108/prr-10-2020-0033.

Downloads

Published

2022-12-31

How to Cite

Fogaat, M. ., Sharma, S. ., & Meena, D. R. P. . (2022). BEHAVIORAL FINANCE PSYCHOLOGY: A REVIEW PAPER. The Journal of Contemporary Issues in Business and Government, 28(4), 2096–2122. Retrieved from https://cibgp.com/au/index.php/1323-6903/article/view/2748