The Role of Emotions in Financial Decisions – Behavioral Finance Approach

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F17%3A00095933" target="_blank" >RIV/00216224:14560/17:00095933 - isvavai.cz</a>
Result on the web
<a href="http://iccbif.kbmf.nhf.euba.sk" target="_blank" >http://iccbif.kbmf.nhf.euba.sk</a>
DOI - Digital Object Identifier
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Result language
angličtina
Original language name
The Role of Emotions in Financial Decisions – Behavioral Finance Approach
Original language description
Traditional finance theory tends to ignore effects of emotions as it assumes that people always behave rationally. Emerging empirical research in behavioral finance shows that feelings do play a role in investor decision making and that individual psychology affects subsequent asset pricing. This paper examines the role of emotions in decision making of economic agents while distinguishing between two sides of debate among researches: the first, analyzing enhancing role of emotions in investment decisions and the second, arguing that emotions detract good investments. Using a qualitative, explanatory approach, the study considers connection of emotions with concepts of behavioral finance, such as disposition effect or attachment bias, and discusses how feelings contribute to explanation of these irrational behaviors observed in empirical studies of financial markets.
Czech name
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Czech description
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Publication year
2017
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Proceedings of the 9th International Conference of Currency, Banking and International Finance
ISBN
9788022543620
ISSN
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e-ISSN
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Number of pages
8
Pages from-to
217-224
Publisher name
Ekonóm, University of Economics in Bratislava
Place of publication
Bratislava
Event location
Bratislava
Event date
Jan 1, 2016
Type of event by nationality
CST - Celostátní akce
UT code for WoS article
000411851600028

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