Behavioral Finance Theory and Its Application in Investment Decision.docVIP

Behavioral Finance Theory and Its Application in Investment Decision 　　Abstract. Behavioral finance theory is constantly relaxing or even abandons traditional financial theory rational man assumptions and the efficient market hypothesis， based on the decision-making process to the actual persons psychological characteristics as variables studied financial market vision， such as asset pricing and portfolio a series of questions theoretical system. In this paper， from home and abroad on behavioral finance theory， based on the current situation in our country from the companys investment policy analysis behavioral finance theory in corporate finance in the application， in order for some of our corporate decision makers to provide a non-decision against the company fully rational and non-efficient market investment strategy. 　　Key words： behavioral finance theory； traditional financial theory； investment decisions 　　1. An overview of the theory of behavioral finance 　　1.1 Behavioral finance theory connotation 　　Behavioral finance theory as an emerging area of research， although nearly 30 years of development history， but has not yet been recognized by the academic community a strict definition. In this issue the process of research， scholars usually human mental activity behavior binds to the study of finance theory and financial behavior from occurring， change the internal psychological mechanisms and characteristics and patterns of mental activity start exploring financial behavior and other economic phenomena necessary connection exists between， revealing the financial nature of the phenomenon. 　　Behavioral finance theory is the behavioral sciences， psychology and cognitive science applied to the results generated in the financial markets theoretical system， is the traditional economics， traditional financial science， and psychology and decision sciences complex. To sum up， behavioral finance theory is constantly relaxing or even abandons traditional financial t