Search results for "behavioural finance"
showing 7 items of 7 documents
Self-deception in financial decisions
2019
Samooszukiwanie jest klasyfikowane jako jeden z błędów decyzyjnych, utrudniający podejmowanie racjonalnych decyzji. Efektywność rynku finansowego jest zaś związana z przekonaniem, że uczestnicy rynku zachowują się racjonalnie, tj. maksymalizują swoją użyteczność i są w stanie poprawnie przetwarzać wszystkie napływające informacje. Skoro jednak są dowody na to, że anomalie rynku finansowego się zdarzają, należy uznać, że efektywność rynku jest tylko szczególną sytuacją, w jakiej ten rynek może się znaleźć. W artykule opisano wyniki badania przeprowadzonego w formie eksperymentu, podczas którego testowano hipotezę, iż osoby o wyższym statusie finansowym są bardziej skłonne do podejmowania bar…
Zachowania finansowe dzieci - problem finansów czy psychologii? Dylematy metodologiczne
2016
Główny problem poruszony w artykule dotyczy tego, w jaki sposób badane jest uczestnictwo dzieci w rynku finansowym i ich możliwości wykazywania różnych zachowań finansowych. Niniejsze opracowanie stanowi próbę rozstrzygnięcia dylematu, czy zachowania finansowe dzieci powinny być przedmiotem badań w obrębie finansów czy raczej psychologii. Zwrócono w nim uwagę na zakres, w jakim badania takie były dotychczas prowadzone, a takżeq na to, i jakich wniosków dostarczały. W pracy przedstawiono odrębność metodologiczną badań oraz określono, jakich informacji dostarczają. Główna konkluzja opracowania sprowadza się do tego, że jakkolwiek badania zachowań finansowych dzieci w ujęciu psychologicznym i …
Effects of Behavioural Finance on Emerging Capital Markets
2014
Abstract A recent common view of finance experts is that it is becoming increasingly difficult to understand how the economy as a whole works. Although the efficient market theory might be considered an ideal model enabling the interpretation of market behavior, it has begun to lose ground, and the rationality hypothesis failed to explain the excessive volatility of the returns and trading volume recorded on both developed capital markets and emerging ones. Adding the behavioral finance perspective to the equation can help us to understand better how market agents will react. In this article, we investigate the factors that may explain the trading volume evolution on two emerging capital ma…
Effects of Behavioural Factors on Human Financial Decisions
2014
Abstract In this article, we investigate the factors that may explain the trading volume evolution on two emerging capital markets, Romania and Brazil. We analyze the impact of both investors who ground their trading behaviour on rational expectations and investors who show psychological and emotional facets of the human decision, which we call behavioural errors, as independent variables on the trading volume as dependent variable. The results indicate that trading is influenced by the investors’ irrational behaviour. Thus, the rationality hypothesis can be rejected for both capital markets.
Another "French paradox": explaining why interest rates to microenterprises dit not increase with the change in French usury legislation
2015
Conventional wisdom indicates that the growth of credit may not materialize if credit rates remain capped by usury laws, as had long been the case in France. France therefore abolished usury ceilings on loans to microenterprise in an effort to increase financing for microentrepreneurs. This should have led to an increase in interest rates and increase in microcredit. However, we do not find any increase in interest rates and this is therefore a paradox. The paper provides a brief literature review and the salient features of the legislative changes in France. It follows this up with a presentation of interest rate movements. The discussion of possible explanations of the paradox includes cl…
A behavioural finance explanation of speculative bubbles: evidence from the bitcoin price development
2019
In 2008 a group of programmers, alias Satoshi Nakamoto, introduced bitcoin. Bitcoin is a cryptocurrency or virtual money derived from mathematical cryptography and is conceived as an alternative to government authorised currency. The founder anticipated, through bitcoin’s construction and his digital mining processes, that bitcoin prices would be relatively stable. However, the recent bitcoin price decline proves that bitcoin is extraordinarily volatile and is not that stable as hoped. Although some scientists have already shown that the fundamental value of bitcoin is zero, the price of bitcoin has reached over 19.000$ in December 2018. Since then, bitcoin prices dropped nearly 70% from th…
How does the market react to your order flow?
2012
We present an empirical study of the intertwined behaviour of members in a financial market. Exploiting a database where the broker that initiates an order book event can be identified, we decompose the correlation and response functions into contributions coming from different market participants and study how their behaviour is interconnected. We find evidence that (1) brokers are very heterogeneous in liquidity provision -- some are consistently liquidity providers while others are consistently liquidity takers. (2) The behaviour of brokers is strongly conditioned on the actions of {\it other} brokers. In contrast brokers are only weakly influenced by the impact of their own previous ord…