behavioral finance ↔ investment decision-making

Relations (1)

related 3.00 — strongly supporting 7 facts

Behavioral finance is fundamentally defined as the study of how psychological, cognitive, and emotional factors influence investment decision-making [1], [2], and [3]. Research in this field specifically examines how these biases lead to suboptimal investment decisions [4] and how market participant characteristics shape these outcomes [5].

Facts (7)

Sources

Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org Daria Azhyshcheva, Vi Dinh, Aanya Gothal, Abhinav Sisodiya · World Scholars Review 2 facts

claimBehavioral finance research identifies common behavioral factors that empirically lead to suboptimal investment decisions, with susceptibility to these biases varying based on an investor's expertise, skill, knowledge, and experience.

perspectiveBehavioral finance asserts that psychological factors, such as cognitive and emotional biases, significantly impact investment decisions and often lead to suboptimal choices.

Influence of behavioral biases on investment decisions. The ... revistas.usc.gal Revistas USC 2 facts

claimBehavioral Finance asserts that cognitive and emotional factors influence investment decisions, contrasting with classical financial theories that assume individual rationality.

referenceThe article 'Influence of behavioral biases on investment decisions. The importance of financial education in times of crisis' cites various foundational works in behavioral finance, including research by Barber and Odean (2013) on individual investor behavior, Asch (1955) on social pressure, and Blasco and Ferreruela (2017) on why investors behave as they do.

The Influence of Behavioral Biases on Investment Decisions jmsr-online.com Journal of Management and Strategy Research 1 fact

claimBehavioral finance challenges traditional finance theories by demonstrating that cognitive and emotional biases systematically influence investment decisions.

Understanding Behavioral Aspects of Financial Planning and Investing financialplanningassociation.org Financial Planning Association 1 fact

claimBehavioral finance assumes that the information structure and the characteristics of market participants systematically influence both individual investment decisions and market outcomes.

5 Biases Affecting Your Investment Decisions | Global Credit Union globalcu.org Global Credit Union 1 fact

claimBehavioral finance is defined as the study of psychological factors that affect the investment decisions individuals make.