 BEHAVIORAL BIASES AND THEIR INFLUENCE ON THE ACTIONS OF INVESTORSYearbook of the Faculty of Economics and Business Administration, Sofia University, 2019, vol. 17, issue 1, 169-186 Abstract: This article analyzes the behavioural biases that inhibit market agents to take impartial judgements and drive them to make irrational financial decisions. Biases are distinguished between cognitive errors and emotional inclinations. The focus is entirely placed on humans instead of econs, as cognitive psychology and experimental economics have been constantly delivering evidence against the model of homo economicus for the last couple of decades. Thus, this paper refers to the main implications of both sciences in order to deliver a comprehensive analysis on the factors underlying the occurrence of behavioral biases. Discussed are the main consequences, that may arise due to the influence of behavioral biases on the actions of agents on the financial and stock markets, including individual and institutional investors, financial analysts, CEO-s, CFO-s, employees, port-folio managers and politicians. Keywords: behavioral finance; cognitive biases; emotional biases; decision making; financial markets; market agents; humans. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sko:yrbook:v:17:y:2019:i:1:p:169-186 Access Statistics for this article More articles in Yearbook of the Faculty of Economics and Business Administration, Sofia University from Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria Contact information at EDIRC. |
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