Vol. 9, Issue 8, Part C (2023)
An exploratory study on the influence of Behavioral finance and traditional finance on financial decision making
An exploratory study on the influence of Behavioral finance and traditional finance on financial decision making
Author(s)
Dr. Priyanka Srivastava and Dr. Manoj Kumar
AbstractThis exploratory study aims to examine the intricate interplay between behavioral finance and traditional finance in shaping individuals' financial decision-making processes. The field of finance has traditionally relied on rational assumptions derived from traditional finance theories, but behavioral finance has introduced a paradigm shift by incorporating psychological and behavioral factors into the analysis of financial decisions. This study seeks to shed light on the relative impact of both schools of thought on various aspects of financial decision making, such as investment choices, risk assessment, and portfolio management. Through a combination of literature review, survey data collection, and qualitative analysis, this research endeavors to provide a nuanced understanding of how cognitive biases, emotional influences, and socio-cultural factors interact with traditional financial principles to shape real-world financial choices. The findings of this study could have implications for financial education, advisory practices, and the development of more accurate models for predicting and understanding financial behaviors.
How to cite this article:
Dr. Priyanka Srivastava, Dr. Manoj Kumar. An exploratory study on the influence of Behavioral finance and traditional finance on financial decision making. Int J Appl Res 2023;9(8):199-205.