A Study on Human Behavioral Aspects on Individual Financial Decisions in Indian Context

2020 ◽  
Author(s):  
Vijay Ratnalikar ◽  
Arti Chandani ◽  
Ankita Bhatia ◽  
Mita Mehta
Keyword(s):  
Financial Decisions ◽  
Indian Context ◽  
Behavioral Aspects

Indian Behavioral Finance

2020 ◽  
Vol 9 (3) ◽  
pp. 54-67
Author(s):  
Vikas Pujara ◽  
Bhavesh P. Joshi
Keyword(s):  
Behavioral Finance ◽  
Driving Forces ◽  
Review Of Literature ◽  
Financial Decisions ◽  
Behavioral Psychology ◽  
Indian Context ◽  
Finance Model ◽  
Complex Procedure ◽  
The Difference ◽  
The Impact

Behavioral finance is a relatively new field of study that combines cognitive psychology and thoughts of leaders in economics, finance, and behavioral psychology to explore the driving forces behind the financial decisions that people make. Making a decision is a complex procedure that embraces cognitive and psychological biases. The paper attempts to explore and document the literature available to review the biases in an Indian context, highlighting specific and variable factors that impact, such as personality traits, and plausibly explain the difference in the behavior from a traditional behavioral finance model. The review of literature suggests that behavioral finance in an Indian context has a pattern, which can be followed to interpret and understand the psychology of Indian investors. A conceptual framework is proposed that considers various factors that can enable understanding Indian behavioral finance. In particular, the impact of personality and financial determinants appear to be imperative to studying behavioral bias in the Indian context.

scholarly journals BEHAVIORAL ASPECTS OF MAKING FINANCIAL DECISIONS IN CONDITIONS OF THE PANDEMIC: LOCAL LEVEL

2021 ◽  
pp. 08-22
Author(s):  
Halyna VOZNYAK ◽  
Khrystyna PATYTSKA
Keyword(s):  
Collective Memory ◽  
Cognitive Processes ◽  
Collective Behavior ◽  
Local Level ◽  
Scientific Uncertainty ◽  
Vital Activity ◽  
Financial Decisions ◽  
Behavioral Aspects ◽  
Dialectical Analysis ◽  
The Impact

Introduction. The established quarantine and social distancing have resulted in falling financial capacity of territorial communities, growing unemployment among the population, mass bankruptcy of enterprises, and changes in economic entities’ behavior. It makes the issue of determining behavioral aspects of making financial decisions and their adjustment to the impact of the coronavirus crisis of utmost importance because the overcoming of the coronavirus crisis by economic entities depends on the adaptation of their vital activity to new conditions. The purpose of the article is to outline the behavioral aspects of making financial decisions on a local level in conditions of the pandemic. Methods. The research is based on the use of dialectical analysis, synthesis, analogy, and logical generalization, as well as comparison and formalization. Results. The research has resulted in substantiation of the expediency of considering the coronavirus crisis in the context of the philosophical idea of black swan and an approach to the analysis of economic entities’ behavior as a reaction to uncertainty. The factors impacting the collective behavior in territorial communities are identified (social norms, social identity, collective memory, system of values, social inequality, economic conditions). The additional factors that determine the collective behavior in conditions of the pandemic are outlined (use of various information sources, discrepancies between forecasts, lack of evidence, high scientific uncertainty, times frame). The mistakes in cognitive processes of economic entities in territorial communities caused by the coronavirus crisis consequences are revealed. The features of making financial decisions in the process of managing the development of territorial communities in conditions of the pandemic are determined.

scholarly journals Irrationality of managers’ behavior in corporate financial decision making

2021 ◽  
Vol 9 (5) ◽  
pp. 51-56
Author(s):  
Marcin Banaszek
Keyword(s):  
Decision Making ◽  
Corporate Finance ◽  
Behavioral Finance ◽  
Decision Making Process ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Irrational Behavior ◽  
Behavioral Aspects ◽  
Financial Decision ◽  
Behavioral Corporate Finance

Purpose of the study: The subject of consideration is the behavioral aspects of corporate finance. The consideration is devoted to the basic inclinations of psychological nature characteristic of managers. The main purpose of the article is to characterize the irrational behavior of managers in the process of financial decision-making in the enterprise. Methodology: The paper was prepared with the use the critical literature review method mainly in the field of behavioral corporate finance. Main findings: The discussion shows that behavioral corporate finance focuses mainly on cognitive and motivational-emotional processes in managers, which may occur in various decision areas within which managers make choices. There are three groups of psychological phenomena and inclinations that are characteristic of managers who manage business entities, namely predispositions to systematic inference errors, heuristics, and the presentation effect. Application of the study: The presented article refers to the irrational behavior of managers in the process of making financial decisions in the company. It implies reflections in such scientific fields as, among others, economics and finance, management and psychology. The use of the tools of psychology allows analyzing the problems of financial decision-making of managers in the enterprise, noticing in them some deviations from rationality that can affect the efficiency of the enterprise. The content of the article can be useful for managers making financial decisions in an enterprise. Originality/Novelty of the study: Behavioral finance is a young discipline of finance, the scientific output of which in Poland is still small. Behavioral aspects are just beginning to gain importance in the decision-making process, especially the financial one. The tendencies of managers to irrationality in the decision-making process presented in this article allow us to better understand the errors, psychological factors that may cause wrong decisions, which in turn may translate into poorer financial condition of the whole enterprise. The article can inspire further research and inquiry in the field of behavioral finance and contribute to other interesting scientific studies.

Review of Behavioral Aspects of AIDS.

1993 ◽  
Vol 38 (11) ◽  
pp. 1239-1240
Author(s):  
Terri Gullickson ◽  
Pamela Ramser
Keyword(s):  
Behavioral Aspects
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