Behavioral finance and their impact on the financial results of the enterprise
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Abstract
Introduction. The article analyzes the differences between traditional finance and behavioral finance. The basic tools of micro-behavioral finance are highlighted, the influence of behavioral finance on ensuring the effective result of the activity of economic relations is determined. The necessity of further study of behavioral finance in modern financial science is substantiated. It describes how behavioral finance is intended to explain the behavior of economic relations in financial market decision-making, as well as how the behavioral approach is sufficiently manifested in predicting the effects of an entity's activities today. Purpose. The methodology of work is studied in the understanding of the concept of "behavior of people", as well as their representatives on the subjects of economic dependence. Results. In recent decades, a new science has emerged and is developing - behavioral finance, which is aimed at clarifying a number of anomalies that emerge in the financial markets. Behavioral finance casts doubt on the rational behavior of market participants and examines deviations in the decision-making system. Conclusion. Assessment of the prospects of enterprise development, taking into account changes in the economy and behavioral finance is the basis for the formation of forecast data and drawing up plans. As a rule, virtually all forecasting methods are based on changes that occur from one period to another, without taking into account the behavioral factor, which allows only to predict the financial results of the enterprise while maintaining existing trends in the market environment, without taking into account possible qualitative changes and may lead to inefficient economic activity, and thus to a decrease in profit.