Articles | Open Access | DOI: https://doi.org/10.37547/tajmei/Volume06Issue01-01

NAVIGATING FINANCIAL LANDSCAPES: A COMPARATIVE ANALYSIS OF INVESTMENT CHOICES THROUGH THE LENS OF PROSPECT THEORY

Metehan Yıldız , Avrasya University, Department of Business Administration, Turkey

Abstract

This study delves into the intricate realm of investment decisions through a comparative analysis, employing the lens of Prospect Theory to unravel the cognitive underpinnings that shape financial choices. Through a meticulous exploration of diverse investment strategies and risk preferences, this research aims to offer a nuanced understanding of how individuals navigate financial landscapes. The comparative approach sheds light on the psychological dynamics influencing investment decisions, providing insights valuable for both individual investors and financial professionals seeking to optimize decision-making processes.

Keywords

Investment Decisions, Prospect Theory, Comparative Analysis

References

Allport, C. D. (2005). The Influence of Evaluative Reactions to Attribute Frames and Accounting Data on Capital Budgeting Decisions, Unpublished Doctoral Dissertation, Blacksburg, Virginia.

Baker, M., Ruback, R. S. and Wurgler, J. (2005). Behavioral Corporate Finance: A Survey, NBER. Working paper, 10863.

Baker, M. and Wurgler, J., (2007). Investor Sentiment in the Stock Market, Journal of Economic Perspectives, 2(21), 129-151.

4. Barberis, N. Huang, M. and Santos, T. (2001). Prospect Theory and Asset Prices,The Quarterly Journal of Economics,116, 1, 1-53.

Chang, C. J., Yen, S. H. and Duh, R. R., (2002). An Empirical Examination of Competing Theories to Explain the Framing Effect in Accounting-Related Decisions,Behavioral Research in Accounting, 14, 35-64.

Chang, C. H. (2011). IPO Underpricing: A Social Comparison Perspective,International Review of Economics and Finance, 20(3), 367-375.

Cochran, A. (2001). Prospect Theory & Customer Choice. Prospect Theory Overview, October, 1-16.

8. Diacon, S. and Hasseldine, J., (2007). Framing Effects and Risk Perception: The Effect of Prior Performance Presentation Format on Investment Fund Choice, Journal of Economic Psychology, 28, 31-52.

Article Statistics

Copyright License

Download Citations

How to Cite

Metehan Yıldız. (2024). NAVIGATING FINANCIAL LANDSCAPES: A COMPARATIVE ANALYSIS OF INVESTMENT CHOICES THROUGH THE LENS OF PROSPECT THEORY. The American Journal of Management and Economics Innovations, 6(01), 01–05. https://doi.org/10.37547/tajmei/Volume06Issue01-01