Financial and investment decisions between behavioral and traditional finance
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Date
2021-12-31
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University of Oum El Bouaghi
Abstract
We aim to study the impact of human behavior on financial and investment decisions, using the descriptive and analytical approach. We concluded that the traditional financing model provides a poor description of financial behavior. In contrast, the main idea in behavioral finance is that investing behavior exists and differs from what the traditional financing model assumes. And it affects the financial markets, and improves our understanding of financial decisions and their impact on market prices. That proves that in many cases behavioral finance is better at predicting the behavior of financial markets.
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Keywords
Behavioral finance, Traditional finance, Investor behavior, Investment decisions