Behavioral Significance in the Credit Decision Making Process
Behavioral finance research is an attempt to close the gaps in traditional theory, to maximize the expected usefulness of rational investors in effective markets by trying to justify human behavior. A fundamental assumption in behavioral finances is that both the information structure and the charac...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universitaria Publishing House
2022-11-01
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| Series: | Finanţe: Provocările viitorului |
| Subjects: | |
| Online Access: | http://www.financejournal.ro/fisiere/revista/118821782004_Cristea_Brezeanu_en1.pdf |
| _version_ | 1797861982336974848 |
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| author | Roxana Elena CRISTEA Petre BREZEANU |
| author_facet | Roxana Elena CRISTEA Petre BREZEANU |
| author_sort | Roxana Elena CRISTEA |
| collection | DOAJ |
| description | Behavioral finance research is an attempt to close the gaps in traditional theory, to maximize the expected usefulness of rational investors in effective markets by trying to justify human behavior. A fundamental assumption in behavioral finances is that both the information structure and the characteristics of market participants systemically influence individual investment decisions as much as market results. The investor, as a human being, processes information using shortcuts and emotional filters. This process influences those who make financial decisions in such a way that they act apparently irrationally and choose decisions below the optimal threshold, in violation of effective traditional financial assumptions. The impact of this decision below the optimal threshold has ramifications for capital market efficiency, personal wealth and corporate performance. Behavioral finance focuses on how investors interpret and use information so that they make investment decisions based on real information. |
| first_indexed | 2024-04-09T22:12:02Z |
| format | Article |
| id | doaj.art-a986e40ac42c435680911db967df3f19 |
| institution | Directory Open Access Journal |
| issn | 1583-3712 |
| language | English |
| last_indexed | 2024-04-09T22:12:02Z |
| publishDate | 2022-11-01 |
| publisher | Universitaria Publishing House |
| record_format | Article |
| series | Finanţe: Provocările viitorului |
| spelling | doaj.art-a986e40ac42c435680911db967df3f192023-03-23T08:33:24ZengUniversitaria Publishing HouseFinanţe: Provocările viitorului1583-37122022-11-011244049Behavioral Significance in the Credit Decision Making ProcessRoxana Elena CRISTEA 0Petre BREZEANU1The Bucharest University of Economic StudiesThe Bucharest University of Economic StudiesBehavioral finance research is an attempt to close the gaps in traditional theory, to maximize the expected usefulness of rational investors in effective markets by trying to justify human behavior. A fundamental assumption in behavioral finances is that both the information structure and the characteristics of market participants systemically influence individual investment decisions as much as market results. The investor, as a human being, processes information using shortcuts and emotional filters. This process influences those who make financial decisions in such a way that they act apparently irrationally and choose decisions below the optimal threshold, in violation of effective traditional financial assumptions. The impact of this decision below the optimal threshold has ramifications for capital market efficiency, personal wealth and corporate performance. Behavioral finance focuses on how investors interpret and use information so that they make investment decisions based on real information.http://www.financejournal.ro/fisiere/revista/118821782004_Cristea_Brezeanu_en1.pdffinanceanalysisbehaviorcrediteconomic |
| spellingShingle | Roxana Elena CRISTEA Petre BREZEANU Behavioral Significance in the Credit Decision Making Process Finanţe: Provocările viitorului finance analysis behavior credit economic |
| title | Behavioral Significance in the Credit Decision Making Process |
| title_full | Behavioral Significance in the Credit Decision Making Process |
| title_fullStr | Behavioral Significance in the Credit Decision Making Process |
| title_full_unstemmed | Behavioral Significance in the Credit Decision Making Process |
| title_short | Behavioral Significance in the Credit Decision Making Process |
| title_sort | behavioral significance in the credit decision making process |
| topic | finance analysis behavior credit economic |
| url | http://www.financejournal.ro/fisiere/revista/118821782004_Cristea_Brezeanu_en1.pdf |
| work_keys_str_mv | AT roxanaelenacristea behavioralsignificanceinthecreditdecisionmakingprocess AT petrebrezeanu behavioralsignificanceinthecreditdecisionmakingprocess |