Quantrade Journal of Complex Systems in Social Sciences
Yazarlar: Hakan İNAÇ
Konular:Sosyal Bilimler, Disiplinler Arası
Anahtar Kelimeler:Financial Market,Behavioral Finance,Lagrange
Özet: Behavioral finance is a combination of economics and finance. Behavioral finance studies how emotions and biases affect financial markets. The behavioral finance approach includes the prospect theory and the efficient market hypothesis. Prospect theory deals with investors' attitudes towards stocks, while the effect of prices on resources is examined in the efficient market hypothesis. Behavioral finance is interested in the impact of factors such as overconfidence, mental accounting, and gambler's fallacy among the factors affecting the investor's behaviors. This paper aims to explain behavioral finance and the effect of behavioral finance on the market value of a company.