Investor Behavioral Finance: Examining its Applicability on Egyptian Investors

Authors : Sharif Musbah Abu Karsh

Pages : 85-91

View : 121 | Download : 1437

Publication Date : 2018-09-12

Article Type : Research Paper

Abstract :Behavioral finance is a novel approach in the financial markets domain. It originates due to an urgent need to overcome and deal with the outstanding issues that traditional investors face in today\'s modern finance system. Thus, it is said that certain investors who do not have perfectly sensible elucidation regarding some financial situations and issues can recognize these issues better by means of certain financial models. Likewise, in a number of behavioral finance models, investors are known to be unable to bring an up-to-date of their beliefs in the correct manner. However, other models show that investors adopt questionable choices in some cases. Thus, this paper introduces the behavioral finance, describes the background and the aims and objectives of the study, and it introduces the standards of the behavioral finance.
Keywords : Financial theory, Egyptian investors, Stock analysis, Anchoring theory, Loss aversion