Behavioral finance – the investors‘ approach

Behavioral finance – the investors‘ approach

Paper in proceedings outside WoS and Scopus

Purpose of the article This paper deals with the field of behavioral finance. It introduces its fundamental basis. Scientific aim The main scientific goal of this paper is to answer following question: What is the behavioral finance and what are the various investors' approaches? Methodology/methods A literature review of secondary sources has been used as a main methodology for this paper. Findings None Conclusion Behavioral finance offers explanations on what basis the investors make financial decisions which are often irrational. It shows and proves how emotions and cognitive errors nfluence decision making process of not only investors. Behavioral finance provides significant amount of insights for investment professionals and consequently suggests a framework for the evaluation of all investment strategies for the investors.

Purpose of the article This paper deals with the field of behavioral finance. It introduces its fundamental basis. Scientific aim The main scientific goal of this paper is to answer following question: What is the behavioral finance and what are the various investors' approaches? Methodology/methods A literature review of secondary sources has been used as a main methodology for this paper. Findings None Conclusion Behavioral finance offers explanations on what basis the investors make financial decisions which are often irrational. It shows and proves how emotions and cognitive errors nfluence decision making process of not only investors. Behavioral finance provides significant amount of insights for investment professionals and consequently suggests a framework for the evaluation of all investment strategies for the investors.

Behavioral finance, Psychology, Sociology, Standard finance, Investor

Behavioral finance, Psychology, Sociology, Standard finance, Investor

BORTLOVÁ, H.

2018

31.12.2013