Evolutions and Challenges of Behavioral Finance
Journal: International Journal of Science and Research (IJSR) (Vol.4, No. 3)Publication Date: 2015-03-05
Authors : V. Raman Nair; Anu Antony;
Page : 1055-1059
Keywords : behavioral finance; classical finance; market efficiency; investment decision; psychological factors; market anomalies;
Abstract
This article presents the evolution of behavioral finance, which is a new approach in capital market. This study reveals the effect of psychological factors in investment decision making process, which was a strong contradiction to the Efficient Market Hypothesis. Behavioral finance is not a replacement to the classical finance paradigm, but an alternative solution to explain the market inefficiency and the irrational behavior of investor.
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