Behavioral finance and classic finance, opposite or complementary theories?
DOI:
https://doi.org/10.22267/rtend.242502.262Keywords:
decision making, economic behavior, financial management, psychology, rationalismAbstract
In the field of finance there have been several contributions that study how individuals make investment, financing, resource allocation and asset valuation decisions for the growth of organizations; however, two approaches have been generated that conceive the decision-making process from various perspectives; on the one hand, classical finance points out that individuals are informed and behave in a rational and maximizing way, while behavioral finance explains the behavior of the decision-maker based on cognitive and emotional factors, pointing out anomalies and inefficiencies in the information. This article reflects on the main characteristics of the approaches in the decision-making process, which guide an overview of the field of knowledge of finance from its traditional vision to a more current one. The research is of qualitative approach, descriptive documentary type with deductive method; as a result, a complementary position between the approaches is proposed, considering that decision making is a complex process that includes the individual's behavior and moves away from rationality, being influenced consciously and unconsciously by feelings, emotions, preferences and cognitive limitations in the understanding of information.
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