Published Paper Details:

Behavioral Finance just as the name suggests, yes it basically deals with how typically human beings behave when it comes to handling different financial decisions. However, it is not that simple and as such, there is an entire subject dedicated to behavioural finance. But, strangely the subject was not officially recognized only until the year 2002 when Daniel Kahneman was awarded the Nobel Prize in Economic Sciences. He is one of the founding fathers of behavioural finance. The mere ignorance of the subject per se until so late speaks volume about strong human behavioural bias. Unlike a classical financial theory, behavioural finance expects individuals to be more influenced by their emotions or reasonable biases rather than taking the rational approach. There are a large number of brains who are not quite willing to accept this discipline as it is often found to be more complex, instinctive, abstract etc. Further, the denial for the discipline is also because it can create doubt in the minds of many about the decisions of sophisticated investors and professional advisors. Behavioral finance suggests that the structure of information and characteristics of participants of the market can play an essential role in the decision making of the investor as well as the overall outcome of the market. Behavioral Finance is about making the right decisions that are free from any kind of biases and errors. It helps in understanding investor behavior better and helps in improving the financial capability of individuals.