Historical Analysis of Behavioral Finance: Connecting Past with The Present and The Future

Abstract

Behavioral finance is a field of study that explores the influence of psychological and behavioral factors on financial decision-making and market outcomes. This research paper aims to provide a historical analysis of behavioral finance, tracing its evolution, key milestones, and contributions over time. By connecting the past with the present and the future, the paper highlights the relevance of behavioral finance in understanding market phenomena and its implications for investors, policymakers, and financial institutions. The research draws upon historical research, academic literature, and case studies to shed light on the development of behavioral finance theories, their empirical validation, and their practical applications. The findings of this paper emphasize the importance of incorporating behavioral insights into traditional finance frameworks and offer suggestions for future research and applications in the field.