Behavioral Significance in the Credit Decision Making ProcessAbstract: Behavioral finance research is an attempt to close the gaps in traditional theory, to maximize the expected usefulness of rational investors in effective markets by trying to justify human behavior. A fundamental assumption in behavioral finances is that both the information structure and the characteristics of market participants systemically influence individual investment decisions as much as market results. The investor, as a human being, processes information using shortcuts and emotional filters. This process influences those who make financial decisions in such a way that they act apparently irrationally and choose decisions below the optimal threshold, in violation of effective traditional financial assumptions. The impact of this decision below the optimal threshold has ramifications for capital market efficiency, personal wealth and corporate performance. Behavioral finance focuses on how investors interpret and use information so that they make investment decisions based on real information

Roxana Elena Cristea and Petre Brezeanu ()
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Roxana Elena Cristea: The Bucharest University of Economic Studies

Finante - provocarile viitorului (Finance - Challenges of the Future), 2022, vol. 1, issue 24, 40-49

Keywords: finance; analysis; behavior; credit; economic (search for similar items in EconPapers)
JEL-codes: G4 (search for similar items in EconPapers)
Date: 2022
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