HERDING BEHAVIOUR IN FINANCIAL MARKETS: A LITERATURE REVIEW

Cumhur ÅžAHÄ°N ()

Eurasian Business & Economics Journal, 2020, vol. 23, issue 23, 107-116

Abstract: According to the classical finance theory it is assumed that investors show rational behaviour in order to achieve maximum gain.but this approach has changed since 1980s. There are a lot of academic studies emphasizing the determining effect of human psychology in financial decisions. Behavioral finance considers the interaction between emotions and investors decisions. According to the New financial approach investors show irrational behaviours and take prejudices into the account for investment decisions as opposed to traditional perspective. Behavioral finance analyzes the market anomalies which conventional financial theories are inadequate to explain based on an assumption that individuals are not rational. While doing this, it benefits from the other sciences such as psychology, sociology, and antropology, etc. One type of behavioral finance is herd behavior. In this paper, domestic and foreign literature research on herd behavior in financial markets were analyzed.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://eurasianacademy.org/index.php/busecon/article/view/855 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eas:buseco:v:23:y:2020:i:23:p:107-116

DOI: 10.17740/eas.econ.2020.V23-07

Access Statistics for this article

More articles in Eurasian Business & Economics Journal from Eurasian Academy Of Sciences
Bibliographic data for series maintained by Kutluk Kagan Sumer ().