Southampton Business School, University of Southamton, Southampton, UK
This paper introduces behavioral finance and mainstream finance. Behavioral finance is a more extensive and inclusive field, because it combines economy, finance, behavior and cognitive psychology to effectively explain and explain why investors in the market engage in irrational financial decision-making Zion manufacturing process. When mainstream finance considers all information, investors are more likely to participate in the rational decision-making process, this in turn helps to better achieve the goal of wealth maximization, in addition, bias is an "illogical preference or irrational hypothesis that affects the decision-making process". Considering this, we can see that when an investor has behavioral bias, he / she is more likely to ignore the evidence, especially the evidence inconsistent with the assumptions he / she holds in decision-making. Confirmation deviation is one of the main deviations witnessed by investors.
Behaviour finance, Maninstream fiance, Confirmation Bias
Lei Lei. Behavioural Finance Versus Mainstream Finance. Academic Journal of Business & Management (2021) Vol. 3, Issue 11: 99-102. https://doi.org/10.25236/AJBM.2021.031119.
 Abdin, S.Z., Farooq, O., Sultana, N. and Farooq, M. (2017) 'The impact of heuristics on investment decision and performance: Exploring multiple mediation mechanisms', Research in International Business and Finance, 42, pp. 674-688.
 Aney, M.S., Applebaum, E. and Banerji, S. (2019) 'Firm boundaries and financing with opportunistic stakeholder behaviour', Journal of Corporate Finance, 56, pp. 437-457.
 Baker, H.K. and Anderson, R. (2010) Corporate Governance: A Synthesis of Theory, Research and Practice, London: Wiley.
 Baxter, L.F. and Macleod, A.M. (2008) Managing Performance Improvement, New York: Routledge.
 Brigham, E.F. and Houston, J.F. (2019) Fundamentals of Financial Management, Cengage Learning.
 Cecchetti, S. and Schoenhholtz, K. (2018) Money, Banking and Financial Markets, New York: McGraw-Hill.
 Chen, Y., Podolski, E.J., Rhe, S.G. and Veeraghaven, M. (2017) 'Do progressive social norms affect economic outcomes? Evidence from corporate takeovers', Journal of Empirical Finance, 41, pp. 76-95.
 Fiberck, A., Ricciardi, V., Evnsky, H.R., Fan, S.Z., Holzauer, H.M. and Spieler, A. (2017) 'Behavioural finance: A panel discussion', Journal of Behavioural and Experimental Finance, 15, pp. 52-58.
 Filz, I., Nahmer, T. and Spiwoks, M. (2019) 'Herd behaviour and mood: An experimental study on the forecasting of share prices', Journal of Behavioural and Experimental Finance, 24, pp. 210-219.
 Grosse, R. (2017) 'The global financial crisis—Market misconduct and regulation from a behavioural view', Research in International Business Finance, 41, pp. 387-398.
 He, Y., Chen, C. and Hu, Y. (2019) 'Managerial overconfidence, internal financing, and investment efficiency: Evidence from China', Research in International Business and Finance, 47, pp. 501-510.
 Henskei, C. (2017) 'From quantum mechanics to finance: Micro foundations for jumps, spikes and high volatility phases in diffusion price processes', Physica A: Statistical Mechanics and its Application, 469, pp. 447-458.
 Hommes, C. and Veld, D.T. (2017) 'Booms, busts and behavioural heterogeneity in stock prices', Journal of Economic Dynamics and Control, 80, pp. 101-124.
 Kaplanski, G. and Levy, L. (2017) 'Analysts and sentiment: A causality study', The Quarterly Review of Economic and Finance, 63, pp. 315-327.
 Kapoor, S. and Prosad, J.M. (2017) 'Behavioural Finance: A Review', Procedia Computer Science, 122, pp. 50-54.
 Khasawneh, T. (2019) 'Introducing article numbering to Journal of Behavioural and Experimental Finance', Journal of Behavioural and Experimental Finance, 24, pp. 89-101.
 Siganos, A., Veganes-Nanos, E. and Verwjmeren, P. (2017) 'Divergence of sentiment and stock market trading', Journal of Banking and Finance, 78, pp. 130-141.
 Yurttadur, M. and Ozceilik, H. (2019) 'Evaluation of the Financial Investment Preferences of Individual Investors from Behavioural Finance: The Case of Istanbul', Procedia Computer Science, 158, pp. 761-765.