Authors :
Mehdi ALHIANE; Khadija ANGADE
Volume/Issue :
Volume 7 - 2022, Issue 10 - October
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3VdsCWq
DOI :
https://doi.org/10.5281/zenodo.7338684
Abstract :
Traditional corporate finance focuses more on
what business leaders are supposed to do than what they
do now. Behavioral approach is designed to examine
what they actually do, why they do it, and make
suggestions on how they could do their jobs better. The
main goal of this brief review is to understand
psychological phenomena related to business behavior
problems and how they affect financial decisions. Indeed,
these phenomena involve general human characteristics,
they affect managers and investors. So, managers need to
understand how these phenomena affect their own
judgments and decisions; however, they also need to
understand the decisions of other managers, as well as
the decisions of the investing public whose trading
activities determine market prices.
Keywords :
Corporate Finance, Behavioral Finance, Traditional Finance, Psychological phenomena, Brief review.
Traditional corporate finance focuses more on
what business leaders are supposed to do than what they
do now. Behavioral approach is designed to examine
what they actually do, why they do it, and make
suggestions on how they could do their jobs better. The
main goal of this brief review is to understand
psychological phenomena related to business behavior
problems and how they affect financial decisions. Indeed,
these phenomena involve general human characteristics,
they affect managers and investors. So, managers need to
understand how these phenomena affect their own
judgments and decisions; however, they also need to
understand the decisions of other managers, as well as
the decisions of the investing public whose trading
activities determine market prices.
Keywords :
Corporate Finance, Behavioral Finance, Traditional Finance, Psychological phenomena, Brief review.
