Behavioral Finance In Terms Of The Evaluation Of The Decisions Of The Investors
Davranışsal Finans Açısından Yatırımcıların Kararlarının İncelenmesi

Author : Işık AKIN
Number of pages : 11-21

Abstract

Behavioral finance is investors’ irrational behavior. It is accepeted that, all the decisions taken or will be taken by the investors include their own interests. Large sized crises has shaken the confidence of investors. As a result of this situation and tendency of investors, examining the decisions of investors approach has gained importance. Thus, behavioral finance theory which claims that market mobility can not be explained by traditional financial theory has gained importance. The aim of this study was to explore the relationship between the decisions of investors or individuals and behavioral finance. The methodology of this research is literature review. The results of this research indicate that, behavioral finance and traditional finance must be used together. That is because behavioral finance is complementary as the efficient markets hypothesis claims that investors and traders must be rational. By doing this efficient market theory sees investors as machine like beings. Behavioral finance is also concerned with people’s behavior in the financial environment.However, behavioral finance is a new area and needs a lot more research. When the behavioral finance is used as a complementary to efficient markets, it will reveal the solution to many problems, including crises.

Keywords

Behavioral Finance, Modelling, Psychological Factors, Investor Behavior

Read: 1,152

Download: 351