THE ROLE OF BEHAVIORAL FINANCE ON EMPLOYEES AND BUSINESS GROWTH

Abstract

Behavioral finance is a research area that combines finance and psychology to help investigate issues that result in the decision-making process and to explain the different natures of organizations, groups and individuals such as employees. The use of psychological factors in behavioral finance leads to better expectations and understanding of the behavior of financial markets and firms that need to make good business decisions. Thus, this study was done to analyze the role of employees in behavioral finance and business growth. The target populations for this work were financial consulting firms in Jeddah, Saudi Arabia. The sample size was 80 employees whom were selected using simple random and stratified method. Data collection was done using questionnaire method. Data were analyzed in terms of basic percentage statistics. The results showed that behavioral finance is crucial as it determines the decision-making process, the performance of employees and firms, and the extent of business growth. The use of behavioral finance will increase the financial performance of the firm and help it achieve its objectives.

CCS Concepts

• Information systems➝Database management system engines   • Computing methodologies➝Massively parallel and high-performance simulations.