EconPapers    
Economics at your fingertips  
 

Behavioural Finance: Providing a Helping Hand in Understanding Individuals Financial Behavioural

Dana Mihaela Anastasiu ()

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017, vol. 7, issue 4, 128-133

Abstract: Behavioural economics currently addresses the human insights that are missing from classic economic theory such as: heuristics, framing and market inefficiencies. As people are prone to economic decisionmaking errors it is imperative to pay attention and to examine cognitive, emotional and subjective factors that can influence the decision-making process. An area related to behavioural economics is that of behavioural finance which attempts to explain the set of psychological aspects and biases that affects financial decisions. The current research explores the influence context effects have on the economic decision making process in two different situations: crisis and no-crisis. A context effect is an aspect of cognitive psychology that describes the influence of environmental factors on one's perception of a stimulus and can have an important impact on our decisions. The paper finds that once the crisis has occurred, Romanians were influenced by the negative economic context, so a context effect could be observed. The financial decisions as regard to loans and deposits were also influenced by the interest rate level and earnings.

Keywords: Behavioural finance; context effect; decision-making process; framing; borrowing; savings; economic crisis; interest rate; earnings (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hrmars.com/hrmars_papers/Article_13_Behavio ... g_a_Helping_Hand.pdf (application/pdf)
http://hrmars.com/hrmars_papers/Article_13_Behavio ... g_a_Helping_Hand.pdf (text/html)

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:hur:ijaraf:v:7:y:2017:i:4:p:128-133

Access Statistics for this article

More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().

 
Page updated 2022-04-04
Handle: RePEc:hur:ijaraf:v:7:y:2017:i:4:p:128-133