Behavioral Finance

Economics is a science that can be said to have the greatest influence in the present age. In fact, it is difficult to call science in a strict sense because human behavior is not affected by the natural laws of other non-biological subjects, predicting and predicting stock prices and economic conditions becomes more difficult . Over the last few decades economists have tried to make a more structured mathematical interpretation of their theory of how humans make decisions.

Two important themes discussed in Behavioral Finance are the behavioral finance macro that recognizes EMH's "anomalies" that the behavioral model can explain, and the microscopic recognition of behavioral finance of behavior of individual investors, or of traditional explanation It is a bias not to be used. A model including rational behavior. In particular, we are using behavioral finance microcosms because we explain many important financing and investment models through the use of behavioral methods, the research in the finance field of behavior companies expands. In this article we summarize the two main problems of behavioral finance, including behavioral corporate finance, and present evidence of the use of behavioral concepts in actual financial markets. Also, looking back on the recent surveys and surveys, we will also explain the issues of behavioral finance.

Behavioral finance has no impact on the financial decision-making and the market in making decisions where the psychology of investors and managers may have a negative or positive impact on any of these areas I will research. Over the past decades, the behavioral finance industry has developed into a core and is very important to the financial industry. A series of behavioral finances called quantitative behavioral finance uses mathematical and statistical methods to combine estimates to understand behavioral bias. Some of these efforts are Gunduz Caginalp (editor of mathematics and behavioral finance journal between 2001 and 2004) and Vernon Smith (2002 Nobel Prize in Economics), Don Balenovich, Vladimira Ilieva, Ahmet Duran Cooperated. Leadership) Research by Jeff Madura, Ray Sturm et al. Shows that stocks and listed investment trusts have a significant impact on behavior