Loss aversion: a qualitative study in behavioural finance

Abstract

The Behavioural Finance contests the modern financial theory statements, specially the rationality conception of the market as well as the agent behaviour. For the Behavioural Finance, the human being is susceptible to make mistakes and often acts under “irrational” and passional impulses. This article describes, comparatively, the Behavioural Finance and the modern finance theory investigating precisely the aversion feeling to loss under the investor view. The comprehension of the aversion feeling of loss is deepened from psychoanalytical theory contribution. As the aversion feeling to loss constitutes an aspect of the human subjectivity and cannot be explained just through quantification, the qualitative methodology was used. It was investigated about the influence meanings, experienced by the investors.

Citation

Kleinübing Godoi, C., Marcon, R. and Barbosa daSilva, A. (2005), "Loss aversion: a qualitative study in behavioural finance", Managerial Finance, Vol. 31 No. 4, pp. 46-56. https://doi.org/10.1108/03074350510769613