American Journal of Business and Operations Research

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Volume 0 , Issue 1 , PP: 08-25, 2019 | Cite this article as | XML | PDF | Full Length Article

Investor Psychology Perspective: a deep review on Behavioral finance

Ahmed Ibrahim Mokhtar 1 * , Saad Metawa 2

  • 1 Ecole Supérieures Libre des Sciences Commerciales Appliquées, 75019 Paris, France - (Ahmed.moktar11@yahoo.com)
  • 2 Mansoura University, Mansoura 35516, Egypt - (s_metawa@mans.edu.eg)
  • Doi: https://doi.org/10.54216/AJBOR.000101

    Abstract

    Determining the fair value of financial assets has been a controversial subject since the 1990s, and whether this value depends only on fundamentally calculated pricing models or if there are other psychological factors that affects it. The field of behavioral finance addressed these issues and provided some asset pricing models that incorporate behavioral aspects of decision-making and explained the different heuristics and biases behind these market reactions that lacked fundamental explanation. Behavioral finance is a relatively new paradigm that emerged to try to fill in the gaps in "Modern Finance". Behavioral finance models did not develop specific strategies to beat the market, however, it has highlighted lots of argumentative ideas that have promising directions of further research and analysis that may be very useful in public policy and welfare analysis, as well as in wealth management. In this paper, the author is presenting some of these behavioral finance theories and how they tackle the psychological aspects in investors’ rational and irrational investment decisions.

    Keywords :

    Behavioral Finance Financial Assets, Investor Psychology

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    Cite This Article As :
    Ibrahim, Ahmed. , Metawa, Saad. Investor Psychology Perspective: a deep review on Behavioral finance. American Journal of Business and Operations Research, vol. , no. , 2019, pp. 08-25. DOI: https://doi.org/10.54216/AJBOR.000101
    Ibrahim, A. Metawa, S. (2019). Investor Psychology Perspective: a deep review on Behavioral finance. American Journal of Business and Operations Research, (), 08-25. DOI: https://doi.org/10.54216/AJBOR.000101
    Ibrahim, Ahmed. Metawa, Saad. Investor Psychology Perspective: a deep review on Behavioral finance. American Journal of Business and Operations Research , no. (2019): 08-25. DOI: https://doi.org/10.54216/AJBOR.000101
    Ibrahim, A. , Metawa, S. (2019) . Investor Psychology Perspective: a deep review on Behavioral finance. American Journal of Business and Operations Research , () , 08-25 . DOI: https://doi.org/10.54216/AJBOR.000101
    Ibrahim A. , Metawa S. [2019]. Investor Psychology Perspective: a deep review on Behavioral finance. American Journal of Business and Operations Research. (): 08-25. DOI: https://doi.org/10.54216/AJBOR.000101
    Ibrahim, A. Metawa, S. "Investor Psychology Perspective: a deep review on Behavioral finance," American Journal of Business and Operations Research, vol. , no. , pp. 08-25, 2019. DOI: https://doi.org/10.54216/AJBOR.000101