Neurofinance: The New Era of Finance Based on Behavioral Finance and Individual Investment Behavior
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Abstract
This paper highlights the effects of neurofinance, which is the study of the human brain and its impact on financial decision-making behavior. It explains why humans often deviate from the principles of conventional finance theory. The primary objective of this paper is to review the field of behavioral finance, including the emerging area of Neurofinance research conducted within this domain. In order to achieve this goal, behavioral finance, its characteristics and Neurofinance are briefly presented. Financial and investment decisions made by individuals are considered to be both cognitive and biased, as they are executed by neural processes. This study is largely based on secondary sources of data, making it research rooted in conceptual analysis. Keywords: Neurofinance, Behavioural Finance, Cognitive Psychology, Investment Decision.