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Implication of Behavioral Finance in Investment Decision-making Process

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  • Agha Jahanzeb
  • Saif-ur-Rehman

Abstract

Behavioral finance is a structure that supplements some parts of standard finance and replaces other parts. It portrays the behavior of investors and management in decision-making; it illustrates the outcomes of interactions between investors and managers in financial and capital markets. As decisionmaking is an art to undertake complex situations and investors make irrational decisions during their investments. Therefore, it is a unique art to choose a certain alternative from various alternatives available. Although behavioral finance does not claim that every investor would suffer from similar illusion, instead it sheds light on to take necessary initiatives to avoid such illusions, which influence the process of decision-making, particularly while making investments.

Suggested Citation

  • Agha Jahanzeb & Saif-ur-Rehman, 2012. "Implication of Behavioral Finance in Investment Decision-making Process," Information Management and Business Review, AMH International, vol. 4(10), pages 532-536.
    • Handle: RePEc:rnd:arimbr:v:4:y:2012:i:10:p:532-536
    DOI: 10.22610/imbr.v4i10.1009
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    References listed on IDEAS

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    Cited by:

    1. Daniel N Mlambo & Victor H Mlambo & Mandla A Mubecua, 2018. "The Rise of Chinese Investments in Africa: For Whose Benefit?," Journal of Economics and Behavioral Studies, AMH International, vol. 10(4), pages 81-87.
    2. Sune Ferreira-Schenk & Zandri Dickason-Koekemoer, 2023. "Analysing the Factors Affecting the Long-term Investment Intention of Investors," International Journal of Economics and Financial Issues, Econjournals, vol. 13(1), pages 112-120, January.

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