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EFFECTS OF BEHAVIORAL FINANCE ON SOUTHEAST ASIAN STOCK MARKETS
Keywords:
behavioral finance, rational expectation, irrational, behavioral biases, optimism, pessimismDOI:
https://doi.org/10.17654/0972361723053Abstract
Behavioral finance model is based on the concept of some economic agents prone to psychological error, which explains the financial phenomena known as market anomalies endure. This paper analyzes the variable of trading volume in the Southeast Asian market based on the impact of both rational and irrational agents using linear regression model. The results are notably different from previous works in which the trading volume is both driven by rational and irrational investors, and it fails to reject the rational expectation theory.
Received: May 26, 2023
Accepted: July 20, 2023
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