Open AccessBehavioral Finance Research in 2020: Cui Bono et Quo Vadis?
Author(s) -
Katharina Fischer,
Othmar M. Lehner
Publication year - 2021
Publication title -
acrn journal of finance and risk perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.122
H-Index - 2
ISSN - 2305-7394
DOI - 10.35944/jofrp.2021.10.1.004
Subject(s) - behavioral economics , arbitrage , status quo , economics , financial economics , positive economics , finance , psychology , political science , market economy
Emanating from the influential survey of Barberis and Thaler (2003), this systematic literature review examines the significant volume of studies on behavioral finance from 36 reputable finance journals published be-tween 2009 and 2019. The findings are clustered into eight prominent research streams, which indicate the current developments in behavioral finance. Findings show that research intensively focuses on behavioral biases and their influence on economic phenomena. Driven by the impetus to understand the human mind, significant findings originated in the relatively new field of Neurofinance. Additionally, the analysis addresses the influence of market sentiment and its correlation with some of the other findings. Furthermore, implications on the limits to arbitrage in connection with some financial anomalies complete the holistic picture.