Published 2020-12-10
Keywords
- Behavioral Finance,
- Psychology of Investing,
- Endocrine System,
- Emotions,
- Neurology
- Davranışsal Finansman,
- Yatırım Psikolojisi,
- Endokrin Sistemi,
- Nöroloji,
- Duygular
How to Cite
Copyright (c) 2020 Business & Management Studies: An International Journal
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
How to Cite
Abstract
The emotional mind which was granted to human beings in order to add the meaning of their perception through the data, information and knowledge that are being gathered from all around the outside environment with senses and the experiences of realities that have effects on the attitude of a person which can be observed as stereotypes, have effects on the decision making processes of investors, which was proven with general assumptions and theories with countless times in the background of the subject. Differently, this research is mainly designed for in-depth investigation of the relationship between parts of the human brain and endocrine system which have a role on emotional actions that can be observed of investors' behaviours in financial markets. From the viewpoint of experimentally tested studies, the discovery of the response of the subproblems will be explored in the main research question of why the risky assets are being selected by the investors relative to the sciences of neurology and endocrinology. Also, the amygdala, testosterone and cortisol relation which is the predictive factor of behaviours is going to be explained in terms of showing their effects on decision making in monetary management and will be analysed as a moderator with depth observations to understand the relationship between investment behaviour and emotions as well. As a result, the study will bring different perspectives to investors who are both experienced and inexperienced in trading with financial instruments by the addition of consideration of emotional side of the human mind to the logic and rational part.
References
- Bachmann, K. K., De Giorgi, G. E. and Hens, T. (2018). Behavioural Finance for Private Banking: From the Art of Advice to the Science of Advice, (pp. 48) .
- Bechara, Antoine, Damasio, H., Damasio, A.R. (2000). Emotion, decision making and the orbitofrontal cortex. Cerebral Cortex 10:3, (pp. 295-307) .
- Chakraborty, A., Konar, A. (2009)., Emotional Intelligence: A Cybernetic Approach, Springer, (pp. 94-95) .
- Coates, John M., Herbert, J. (2008). Endogenous steroids and financial risk-taking on a London trading floor. Proceedings of the National Academy of Sciences 105:16, (pp. 6167-6172) .
- Frydman, C., Camerer, C. (2016). Neural evidence of regret and it's implications for investor behavior. The Review of Financial Studies, 29:11, (pp. 3108-3139) .
- Harder, S. (2008), The Efficient Market Hypothesis and Its Application to Stock Markets, (pp. 5) .
- http://www.ascd.org/publications/books/101269/chapters/A-Walk-Through-the-Brain.aspx
- Lee, A. C., Lee, J. C., Lee, C. F. (2016). Financial Analysis, Planning&Forecasting: Theory and Application, (pp. 287-288) .
- Ricciardi, V. (2008). Risk: Traditional finance versus Behavioural finance. In handbook of finance, 3: Valuation, financial modeling and quantitative tools, ed. Frank J. Fabozzi, (pp. 11-38) . Hoboken, NJ: John Wiley&Sons.
- Smith, C. W. (1999). Success and survival on Wall Street: Understanding the mind of the market, 2d ed. Lanham, MD: Rowman and Littlechild
- Vergano, D. (2006). Study: Ask with Care: Emotion rules the brain's decisions. USA Today, August 7, (pp. 4) .
- Wolozin, H., Wolozin, B. (2007). The unconscious in economic decision-making: Convergent voices. Journal of Socio-Economics 36:6, 856-64