scholarly journals BEHAVIORAL FINANCIAL DECISIONS OF THE POPULATION IN THE PROCESS OF CONSUMPTION

2020 ◽  
pp. 19-28
Author(s):  
Natalia KARPYSHYN ◽  
Solomia TABAKA
Keyword(s):  
Behavioral Finance ◽  
Negative Impact ◽  
Continuous Process ◽  
Visual Presentation ◽  
Behavioral Factors ◽  
Negative Effects ◽  
Financial Decisions ◽  
Goods And Services ◽  
Self Confidence ◽  
Subjective Perceptions

Introduction. The financial decision-making process depends not only on objective economic factors and motives; it is often under the influence of behavioural factors and subjective perceptions of situations. Consumption, as a continuous process of acquiring goods and services, has become an integral attribute of public life and a significant item of expenditure of personal and family budgets. Therefore, understanding the behavioural effects that affect the financial behaviour of consumers is an important step towards conscious consumption and rational spending of personal funds. The purpose is to theoretical analyse the influence of behavioral factors on the financial decisions of citizens in the field of consumption in order to reduce their negative effects and optimize consumer spending. Methods. System of general scientific and special research methods were used in the article. Methods of analysis, synthesis and generalization were used for the study of literary, statistical and Internet sources on the research topic; visualization method were used for visual presentation of the processed data; abstract-logical method - for generalize the presented material and formulate conclusions. The method of questionnaires and sampling, methods of statistical analysis and comparison were used for evaluate the financial decisions of households in Ukraine. Results. The article presents that using of an “intuitive” system of making financial decisions in the process consumption leads to unconscious and irrational spending of personal funds. The author generalized theories of behavioral finance and systematized the behavioral factors that influence citizens' financial decisions, namely: heuristics, emotions, framing, market influence, psychological accounting and loss perception. It has been proven that due to the lack of time for detailed information analysis, people make decisions under the influence of heuristics, such as the bandwagon effect, possession and anchoring. In such cases, money is spent irrationally and consumption becomes unconscious, as it is stimulated by marketing technologies and manipulations. Behavioral factors of emotional influence (excessive self-confidence and greed) also push the population to unjustified financial risks. Author offer to improve state policy in the field of management of personal financial resources in way to help citizens avoid the negative impact of behavioral factors and make informed financial decisions. Perspectives. The subject of further scientific research is the search and in-depth study of ways to effectively use personal funds in the field of lending and investing in the context of behavioral theories.

Simulation of emotional differences in the structured query language for databases of financial markets

2021 ◽  
Vol 14 (2) ◽  
pp. 156-173
Author(s):  
Semen Yu. BOGATYREV
Keyword(s):  
Information Systems ◽  
Financial Market ◽  
Behavioral Finance ◽  
Query Language ◽  
Learning Technologies ◽  
Financial Decisions ◽  
Self Confidence ◽  
Structured Query Language ◽  
The Face ◽  
Modern Information

Subject. The article addresses a simulation in the structured query language (SQL) for the Bloomberg information base, the scientifically grounded tools for measuring emotions in markets in the face of financial and pandemic crisis and market imbalances, in addition to classic financial indicators, the creation of analytical tools based on state-of-the-art software tools that integrate the latest advances in behavioral finance and in financial and coefficient analysis, machine learning technologies, and open financial market data. Objectives. The aim is to create a usable toolkit for balanced evaluation of financial and economic situation of companies, based on the analysis of the main Russian and foreign modern means to measure emotions. Methods. The study employs methods of induction, deduction, and modeling. It demonstrates the link between methods and methodologies with new technical means of modern information systems. Results. The paper studies the effect of the heuristics of insufficient reaction and heuristics of excessive self-confidence, using the examples of market drawdown. I developed and implemented a model, using the behavioral finance tools as a factor in stabilizing financial decisions. Conclusions. New software and hardware tools enabled to identify and measure the actions of the heuristics of financial market participants. Financial analysts, when applying the new capabilities of modern information systems for programming and creating user models with required parameters and extensive database, will have new opportunities in the described models. The procedure for collecting and processing the original information required for valuation is simplified.

Economy of households under conditions of pandemic instability

2021 ◽  
pp. 98-109
Author(s):  
Mariana Fedyk
Keyword(s):  
Negative Impact ◽  
Alcoholic Beverages ◽  
Baseline Scenario ◽  
Household Economy ◽  
Negative Effects ◽  
Subsistence Level ◽  
Goods And Services ◽  
Academic Paper ◽  
Absolute Criterion ◽  
The Impact

The purpose of the academic paper lies in assessing the state of income, expenditure and savings of households under conditions of pandemic instability. The research methodology is based on the statistical analysis of data on income, resources and savings of households in Ukraine for 2010-2020. The scientific novelty involves identifying the positive and negative effects of the pandemic on the household economy. Conclusions. The positive and negative effects of the impact of spreading the pandemic on the household economy have been revealed in the research, and as a result, the decline in economic activity and the growth of unemployment in Ukraine. It has been determined that in the period of 2020 pandemic, costs decreased by 2% and resources increased by 3%. In 2020, the share of expenditures on food and non-alcoholic beverages increased from 46,6% to 48,1% in 2019, and on non-food goods and services - decreased from 41,5% to 39,8%. The population with per capita equivalent total income per month, below the actual subsistence level, was 8,9 million people in 2019 (23,1%), in 2020 – 8,8 million people (23,2%). Despite experts’ assessments of the likely increase in poverty as a result of COVID-19 spreading under two scenarios (according to the absolute criterion, it will increase from 27,2 to 43,6%; according to an absolute criterion, it will increase from 27,2 to 50,8%). It can be noted that the COVID-19 pandemic has had a negative impact on the poorest sections of the population with low incomes. It has been determined that in the context of social-economic impact of COVID-19, families who find it more difficult to diversify their own incomes are the most vulnerable ones. The following categories have been most affected by the pandemic (they will have had the largest increase in poverty compared to the baseline scenario), namely: households with three or more children; single parents with children; households with children under three; single retirees over 65 years.Along with this, thanks to the monetary policy that has ensured a stable level of inflation and return on deposits, the share of household deposits has increased the most in the last ten years to 27%. However, it is worth noting that quarantine and the COVID-19 pandemic have led to a trend towards a partial flow of population resources from time deposits to card and savings accounts. After all, citizens sought to have free money in case of unforeseen expenses due to the uncertainty of the future development of events. Key words: households, income, resources, consumer expenditures, economic crisis, pandemic instability, quarantine restrictions.

scholarly journals Behavioral Biases as An Effective Factor for the Firm Financial Decision-Making: A Literature Review

2016 ◽  
Vol 10 (2) ◽  
pp. 2103-2115
Author(s):  
Bilgehan TEKIN
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Point Of View ◽  
Decision Making Process ◽  
International Studies ◽  
Negative Effects ◽  
Financial Decisions ◽  
Behavioral Biases ◽  
Effective Decision Making ◽  
The Impact

Decision-making process is a multi-faceted and complex process. Decision making can be defined like a process of choosing from among a number of alternatives. It will not contribute enough to be fully understood and to effective decision making to be addressed only from the rational point of view. Behavioral finance is an integral part of the decision-making process. Individuals can improve their performance by recognizing the biases which discussed in the framework of behavioral finance. Understanding the possible negative effects of biases allows to the individuals to make better choices and they can avoid repeating the expensive errors in future. Result of investigations of behavioral biases on decision-makers in the firms, managerial bias issue has been raised. The studies show the effect of managerial biases on many financial decisions in firms. This paper investigated the role of biases such as overconfidence, loss aversion, optimism, anchoring, narrow framing, self-serving attribution, disposition effect etc. on financial decisions such as investing, financing, equity market, capital structure etc. This study review of 30 international studies related with behavioral corporate finance and behavioral biases that affect financial decisions in firms. The studies were gleaned from Web of Science and Google Scholar. The main contribution of this study to the literature is this study brings out the impact of behavioral biases on financial decisions in the firms by summarizing the previous studies. In this sense, this work also has an assembly quality. Therefore, this is also intended with this study that to transfer the knowledge and intellectual formation about the impact of behavioral bias on the financial decisions. In this paper, most important behavioral biases in the behavioral finance literature will be addressed.

Emotional Finance Plays an Important Role in Investment Decisions

2019 ◽  
pp. 89-103 ◽  
Author(s):  
Sarika Keswani
Keyword(s):  
Human Behavior ◽  
Behavioral Finance ◽  
Significant Role ◽  
Positive Emotions ◽  
Investment Decisions ◽  
Psychological Theory ◽  
Decision Makers ◽  
Business Decisions ◽  
Financial Decisions ◽  
Self Confidence

Most of the investors focus on human emotions not expressed openly while making investment decisions. Emotions have a powerful position in making investment decisions. They drive human behavior that is consistent with economic predictions while making investments. Emotions play a significant role while making decisions on investments just like any other business decisions. Behavioral finance tries to combine behavioral and cognitive psychological theory with conventional economics and finance to provide justifications for why people make irrational financial decisions. The aim of this chapter is to understand whether emotional phases affect investors' decisions in different investment situations basing on levels of uncertainty. Positive emotions like self-confidence, challenge, and hope increase the decision-makers tendency to exaggerate the commitment, and negative emotions, namely embarrassment and strain, do not.

Emotional Finance Plays an Important Role in Investment Decisions

2021 ◽  
pp. 40-54
Author(s):  
Sarika Keswani
Keyword(s):  
Human Behavior ◽  
Behavioral Finance ◽  
Significant Role ◽  
Positive Emotions ◽  
Investment Decisions ◽  
Psychological Theory ◽  
Decision Makers ◽  
Business Decisions ◽  
Financial Decisions ◽  
Self Confidence

Most of the investors focus on human emotions not expressed openly while making investment decisions. Emotions have a powerful position in making investment decisions. They drive human behavior that is consistent with economic predictions while making investments. Emotions play a significant role while making decisions on investments just like any other business decisions. Behavioral finance tries to combine behavioral and cognitive psychological theory with conventional economics and finance to provide justifications for why people make irrational financial decisions. The aim of this chapter is to understand whether emotional phases affect investors' decisions in different investment situations basing on levels of uncertainty. Positive emotions like self-confidence, challenge, and hope increase the decision-makers tendency to exaggerate the commitment, and negative emotions, namely embarrassment and strain, do not.

scholarly journals The Benefits of Applying the Green Purchasing

2021 ◽  
Vol 92 ◽  
pp. 06037
Author(s):  
Nikola Slastanova ◽  
Hubert Palus ◽  
Rastislav Sulek ◽  
Jan Parobek ◽  
Katarina Slastanova
Keyword(s):  
Swot Analysis ◽  
Negative Impact ◽  
Value Added ◽  
Negative Effects ◽  
Processing Industry ◽  
Goods And Services ◽  
Wood Processing ◽  
Ecological Benefit ◽  
Expert Estimation ◽  
Green Purchasing

Research background: Globalisation brings both opportunities and challenges. It affects relationships in various areas of business, including the wood processing industry. The EU seeks to make the most of globalisation for citizens and businesses while reducing its negative effects. Green purchasing is one of the tools that helps to eliminate the negative effects of globalisation. To increase the competitiveness in the wood processing industry through green purchasing is not only about reducing the direct environmental impact of business activities but also about bringing social and health as well as economic and political benefits. Green purchasing is intelligent purchasing, which increases the efficiency of procurement of goods and services with the lowest possible negative impact on the environment and thus replaces goods or services that would be purchased by default to perform the same function but with a worse impact on the environment. Purpose of the article: The aim of this paper is to determine the benefits of applying green purchasing in wood processing companies. By identifying the internal and external environment, it is possible to determine the benefits of green purchasing in terms of economic, environmental, political, and social and health aspects. Methods: Using the methods of expert estimation, SWOT analysis and Fuller’s triangle, the paper evaluates the benefits of green purchasing, and defines appropriate measures with possible strategies for its application in the wood processing industry. Findings & Value added: The main economic benefit is the reduced costs, social is the education of employees, and ecological benefit is the protection of forest resources.

scholarly journals The Importance of Entrepreneurship in Micro and Small Enterprises in Uncertainty and Barrier Scenarios

2022 ◽  
Vol 13 (1) ◽  
pp. 61
Author(s):  
Marcelo T Okano ◽  
Odir De Almeida Veiga ◽  
Marcelo Eloy Fernandes
Keyword(s):  
Small Businesses ◽  
Negative Impact ◽  
Cost Management ◽  
Field Research ◽  
Careful Analysis ◽  
North Coast ◽  
Negative Effects ◽  
Goods And Services ◽  
The North ◽  
Technological Developments

Economic, political, and technological uncertainties require organizations to prepare adequately for new events that occur each day. Economic crisis, changes in the policies of each country and technological developments are classic examples of these changes in organizations. Seasonality is one of the economic phenomena that occur, and different forms of management are required. The seasonality that is described as a systematic and temporal imbalance of the tourist phenomenon that does not need to be regular, caused by the climate or by the vacation periods, and is based on the consumer behavior that can be expressed in terms of the number of visitors, traffic, highways, jobs, and tickets at attractions. Therefore, through a careful analysis of seasonality, it is possible that the losses are predicted, and the negative impact is not so grotesque on the company. For this, it is good that the manager uses the cost assessment methods to assume the seasonality of sales and thus be able to guard against the negative effects of the same. The objective of this research is to understand how owners of micro and small businesses in coastal cities consider themselves entrepreneurs or not and how they deal with obstacles such as seasonality through cost management. The methodology used was based on an exploratory and bibliographic research with a qualitative approach, seeking to analyze the triad: Entrepreneurship, Seasonality and Cost Management. The field research was applied through a semi-structured questionnaire to the sample of 100 Microentrepreneurs in the trade of goods and services in Caraguatatuba and São Sebastião, central cities of the North Coast of São Paulo. The main results show that most of the interviewed entrepreneurs perceive a certain impact caused by seasonality, understand the use of Cost Management to improve their processes and are adapted to one of the main costing methods highlighted by the bibliography.

Problems of Development of Small and Medium Russian Towns

2019 ◽  
pp. 24-29
Author(s):  
V V. Kafidov ◽  
V. N. Filippov ◽  
I. P. Filippova
Keyword(s):  
Urban Development ◽  
Urban Areas ◽  
Negative Impact ◽  
Physical Space ◽  
Living Environment ◽  
Transport Infrastructure ◽  
Negative Effects ◽  
Conceptual Approach ◽  
Fundamental Factor ◽  
New Buildings

The presented study addresses the problems of development of small and medium towns in Russia. Aim. The study aims to examine a town as a socio-economic environment where its residents exist and as the fundamental factor for the development of society.Tasks. The authors identify key problems in the development of small and medium Russian towns, which interferes with the historical appearance and has a negative impact on the living environment.Methods. Problems in the development of small and medium towns in Russia are examined using theoretical methods: systematic approach, statistical analysis, social and philosophical analysis.Results. The study identifies the main negative effects of the existing model of development of small and medium Russian towns, such as destruction of their historical and cultural appearance, distortion of the overall architectural motif, increased load on communications, and congestion of the transport infrastructure.Conclusions. At the current stage, efficient development of small and medium towns in Russia is impossible within the framework of the existing infill development. This chaotic process cannot be stopped without a new conceptual approach and changes in the legislative and normative framework of urban development. The only factor that determines the boundaries of the existing approach to urban development is the lack of physical space for new buildings in urban areas. The authors formulate proposals that would help to solve the problems of development of small and medium towns in Russia. 

Potency of Super Red Dragon Fruit Flesh Extract (Hylocereus costaricencis) in Herbal Lipstick as Colorant, Antioxidant and Antibacterial

SCISCITATIO ◽  
2020 ◽  
Vol 1 (1) ◽  
Author(s):  
Lusiana Dian Anjarsari ◽  
Dwi Aditiyarini ◽  
Guntoro
Keyword(s):  
Staphylococcus Aureus ◽  
Chemical Compound ◽  
Negative Impact ◽  
Antioxidant Properties ◽  
Natural Source ◽  
Fruit Extract ◽  
Fruit Flesh ◽  
Self Confidence ◽  
Dragon Fruit ◽  
Ic50 Value

Lipstick is one kind of cosmetics which is used as lips colorant to increase self-confidence. Nowadays, lipsticks from natural source is popular to reduce the negative impact of chemical compound or synthetics colorant in lipstick intensively for health. Super red dragon fruit is one kind of natural ingredients which can be used as colorant for lipstick. Moreover, this fruit is rich of antioxidant and antibacterial component that is good for skin health. In this research, extract of super red dragon fruit flesh was added in the lipstick during preparation with variation of concentration 0, 10, 20, 30 and 40%. Antioxidant analysis resulted the IC50 value in 81.55% indicating the strong antioxidant properties. Furthermore, the concentration of dragon fruit extract 40% was able to inhibit the growth of Staphylococcus aureus bacteria.

scholarly journals In the Same Boat, but not Equals: The Heterogeneous Effects of Indirect Taxation on Child Health in Punjab-Pakistan

2020 ◽  
Vol 11 (3) ◽  
Author(s):  
Faiz Ur Rehman ◽  
Muhammad Nasir
Keyword(s):  
Negative Impact ◽  
Income Group ◽  
Z Score ◽  
Negative Effects ◽  
Indirect Taxation ◽  
Nutrition Survey ◽  
Lower Income Group ◽  
Food Items ◽  
Heterogeneous Effects ◽  
The Impact

AbstractThe 2011 National Nutrition Survey of Pakistan revealed that 51% of the country’s population was consuming less than 2,100 calories a day. In the backdrop of rising food insecurity, hunger, and malnutrition in Pakistan, this study aims to measure the effects of indirect taxation on health outcomes of children (<5 years). More specifically, the impact of the incidence of General Sales Tax (GST) in the province of Punjab has been estimated on a child’s height and weight. The proponents of the uniform GST argue that the tax would not affect children because most food items consumed by children are exempted from the GST. However, the opponents believe that households, especially those belonging to the lower-income group, would reallocate resources away from children in the face of higher GST. To study these effects, we utilized three different waves (2007–08, 2011 & 2014) of Multiple Indicators Cluster Surveys (MICS). The results show that the tax incidence, and not the GST rate, has a significantly negative impact on children’s height-for-age Z-score (HAZ). No effect was found on the weight-for-age-z-score (WAZ). These results are robust to different specifications and exhibit considerable heterogeneity across different income groups. These findings suggest that the exemption of certain food items for children from the GST may not eliminate the negative effects of this tax on a child’s health. Thus, our study raises concerns about the long term welfare consequences of GST.

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