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Mental accounting interprets the tendency of people to mentally segregate their financial resources into different categories. In the event of financial losses or gains in different mental accounts, people will be impacted differently than if the financial loss was integrated across their entire financial portfolio.
Managerial finance [29] is the branch of finance that deals with the financial aspects of the management of a company, and the financial dimension of managerial decision-making more broadly. It provides the theoretical underpin for the practice described above , concerning itself with the managerial application of the various finance techniques .
Anticipated pain of payment is “the negative psychological affective reaction consumers experience when they become cognizant that they will or may lose a certain amount of their financial resources in the future.” [4] These new definitions consider that pain of payment can be experienced both after and before making payments, can be ...
Behavioral finance [74] is the study of the influence of psychology on the behavior of investors or financial analysts. It assumes that investors are not always rational , have limits to their self-control and are influenced by their own biases . [ 75 ]
It combines research from neuroscience, experimental and behavioral economics, and cognitive and social psychology. As research into decision-making behavior becomes increasingly computational, it has also incorporated new approaches from theoretical biology, computer science, and mathematics. Neuroeconomics studies decision-making by using a ...
Financial dependency, within the realm of personal finance and psychology, is a situation in which one person becomes reliant on another individual or entity for financial support, often to an extent that hinders their ability to manage their own finances independently.
Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade". [1]
Financial Quotient (FQ), sometimes also referred as financial intelligence (FI), financial intelligence quotient (FiQ) or financial IQ, is the ability to obtain and manage one's wealth by understanding how money works.