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A Theoretical Perspective on Behavioral Finance With Lagrangian Approach

Year 2019, Volume: 1 Issue: 1, 22 - 27, 11.12.2019

Abstract

Behavioral finance
is a combination of economics and finance. Behavioral finance studies how
emotions and biases affect financial markets. The behavioral finance approach
includes the prospect theory and the efficient market hypothesis.



Prospect theory deals
with investors' attitudes towards stocks, while the effect of prices on
resources is examined in the efficient market hypothesis.  Behavioral finance is interested in the
impact of factors such as overconfidence, mental accounting, and gambler's
fallacy among the factors affecting the investor's behaviors. This paper aims
to explain behavioral finance and the effect of behavioral finance on the
market value of a company.

References

  • Yörükoğlu Ali, Davranışsal Finans, Bankacılık ve Sigortacılık Enstitüsü, Yüksek Lisans Tezi, İstanbul 2007
  • Gazel, Sümeyra ,(2014), Yatırım Psikolojisi, 5. Baskı, Ankara
  • Günak, N.(2007), İleri Teknik Analiz Uygulamaları, İstanbul: Literatür Yayınevi
  • Aslan, R., (2016), “Bireysel Yatırımcıları Finansal Yatırıma Yönlendiren Faktörlerin Davranışsal Finans Açısından Araştırılması: Şanlıurfa İline Bağlı Viranşehir İlçesi Örneği”, Yüksek Lisans Tezi, Çağ Üniversitesi, Sosyal Bilimler Enstitüsü.
  • Şimşek, K. (2018), " Davranışsal Finans ve Yatırımcı İlişkileri", Yüksek Lisans Tezi, Galatarasay Üniversitesi, Sosyal Bilimler Enstitüsü.
  • Tufan, E. (2003). Davranışsal Finans. Ankara: Orion Yayınevi.
  • Kojabad, Arezou, Niki, (2012), “Menkul Kıymet Borsalarında Alınan Yatırımcı Kararlarına Davranışsal Finansın Etkileri: Tahran Menkul Kıymetler Borsası Örneği ve İMKB Karşılaştırması”, Yüksek Lisans Tezi, Ege Üniversitesi Sosyal Bilimler Enstitüsü, İzmir.
  • Semra Öncü, Hüseyin Aktaş, Sibel Kargın, Rabia Aktaş, Nilgün Kayalı (2001) “Yatırımcıların Anormal Fiyat Değişimlerine Tepkisi”,s.5
  • Barberris, Nicholas, Thaler, Richard (2002). A Survey of Behavioral Finance, NBER Working Paper Series 9222
  • Bassidi, Hassan, lkabbouri, Mounime E (2013) The Contributions of Behavioral Finance To Explain The Value Relevance of Fundamental Value, International Review of Business Research Papers Vol. 9. No.1. January 2013 Issue. Pp. 52 –72
  • Kaia Kask, (2003). "The Influence Of Investors’ Behaviour And Organisational Culture On Value İnvesting," University of Tartu - Faculty of Economics and Business Administration, in: Organisational Culture in Estonia: Manifestations and Consequences, volume 16, chapter 13, pages 237-255 Faculty of Economics and Business Administration, University of Tartu (Estonia)
  • Hirshleifer, D. (2001). Investor psychology and asset pricing, Journal of Finance, No 56, pp. 1533-1598.
  • Damodaran, A. (2003). Investment Philosophies: Successful Strategies and the Investors Who Made Them Work. John Wiley & Sons, 512 pp.
  • Shleifer, A. (2000). Inefficient Market: An Introduction to Behavioral Finance. Oxford Univ. Press Inc., New York, 216 pp.
  • Tversky, A., Kahneman, D. (1974). Judgement Under Uncertainty: Heuristics and Biases. Science, No 185, pp. 1124−31.
Year 2019, Volume: 1 Issue: 1, 22 - 27, 11.12.2019

Abstract

References

  • Yörükoğlu Ali, Davranışsal Finans, Bankacılık ve Sigortacılık Enstitüsü, Yüksek Lisans Tezi, İstanbul 2007
  • Gazel, Sümeyra ,(2014), Yatırım Psikolojisi, 5. Baskı, Ankara
  • Günak, N.(2007), İleri Teknik Analiz Uygulamaları, İstanbul: Literatür Yayınevi
  • Aslan, R., (2016), “Bireysel Yatırımcıları Finansal Yatırıma Yönlendiren Faktörlerin Davranışsal Finans Açısından Araştırılması: Şanlıurfa İline Bağlı Viranşehir İlçesi Örneği”, Yüksek Lisans Tezi, Çağ Üniversitesi, Sosyal Bilimler Enstitüsü.
  • Şimşek, K. (2018), " Davranışsal Finans ve Yatırımcı İlişkileri", Yüksek Lisans Tezi, Galatarasay Üniversitesi, Sosyal Bilimler Enstitüsü.
  • Tufan, E. (2003). Davranışsal Finans. Ankara: Orion Yayınevi.
  • Kojabad, Arezou, Niki, (2012), “Menkul Kıymet Borsalarında Alınan Yatırımcı Kararlarına Davranışsal Finansın Etkileri: Tahran Menkul Kıymetler Borsası Örneği ve İMKB Karşılaştırması”, Yüksek Lisans Tezi, Ege Üniversitesi Sosyal Bilimler Enstitüsü, İzmir.
  • Semra Öncü, Hüseyin Aktaş, Sibel Kargın, Rabia Aktaş, Nilgün Kayalı (2001) “Yatırımcıların Anormal Fiyat Değişimlerine Tepkisi”,s.5
  • Barberris, Nicholas, Thaler, Richard (2002). A Survey of Behavioral Finance, NBER Working Paper Series 9222
  • Bassidi, Hassan, lkabbouri, Mounime E (2013) The Contributions of Behavioral Finance To Explain The Value Relevance of Fundamental Value, International Review of Business Research Papers Vol. 9. No.1. January 2013 Issue. Pp. 52 –72
  • Kaia Kask, (2003). "The Influence Of Investors’ Behaviour And Organisational Culture On Value İnvesting," University of Tartu - Faculty of Economics and Business Administration, in: Organisational Culture in Estonia: Manifestations and Consequences, volume 16, chapter 13, pages 237-255 Faculty of Economics and Business Administration, University of Tartu (Estonia)
  • Hirshleifer, D. (2001). Investor psychology and asset pricing, Journal of Finance, No 56, pp. 1533-1598.
  • Damodaran, A. (2003). Investment Philosophies: Successful Strategies and the Investors Who Made Them Work. John Wiley & Sons, 512 pp.
  • Shleifer, A. (2000). Inefficient Market: An Introduction to Behavioral Finance. Oxford Univ. Press Inc., New York, 216 pp.
  • Tversky, A., Kahneman, D. (1974). Judgement Under Uncertainty: Heuristics and Biases. Science, No 185, pp. 1124−31.
There are 15 citations in total.

Details

Primary Language English
Journal Section Review Article
Authors

Hakan İnaç 0000-0001-9566-4106

Publication Date December 11, 2019
Acceptance Date December 11, 2019
Published in Issue Year 2019 Volume: 1 Issue: 1

Cite

APA İnaç, H. (2019). A Theoretical Perspective on Behavioral Finance With Lagrangian Approach. Quantrade Journal of Complex Systems in Social Sciences, 1(1), 22-27.

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