ARTICLE
TITLE

Behavioural Finance: The Literature Review of Myopic Loss Aversion

SUMMARY

Behavioral finance is a theory that tries to analyze the psychological bias that is less noticeable in the standard financial theory. In this theory, there are a lot of behavioral biases that occur in investors that can cause them to make costly mistake when making decisions. This article focuses on the most common, and the most costly, of all the biases that cause perfectly rational people to make irrational investment decisions that is Myopic Loss Aversion (MLA). The purpose of writing this article is to explain the MLA as a whole, their consequences, and how to avoid it. Myopic loss aversion (MLA) is a combination of the two theories, namely behavioral loss aversion and mental accounting. Loss aversion refers to the fact that a person will tend to be more sensitive to losses than profits. While mental accounting refers to a series of cognitive actions undertaken by economic agents in managing, evaluating, and maintaining financial activities.

 Articles related

Nayef Jomaa Jomaa,Siti Jamilah Bidin10.17509/ijal.v9i1.13793   Abstract views: 459       PDF downloads: 362    

Due to their significance in establishing a research background, citations have been under focus by several researchers. However, limited studies have applied the Functional Theory in analysing reporting verbs in citations. Hence, this study identifies c... see more


Iskandar Abdul Samad,Siti Sarah Fitriani,Zahria Amalia    

Anxiety in spoken English is a common topic in ELT research. However, little is discussed in the literature regarding anxiety in English public speaking particularly in a very awaited yet the most thrilling event called a Thesis Defence Examination (TDE)... see more


Kevin savio Dsouza,Purva Hegde Desai,Nilesh Borde,Edgar DSouza    

Eating regulation is a primary mechanism in effecting health behaviour changes. The study identified the roles of mindfulness as a psychological factor, along with behavioural factors like lifestyle habits and food culture as an environmental factor, com... see more


Norman Rudhumbu    

Technology-mediated distance education (TDE) has become part of the new normal in the range of teaching strategies used in universities in Zimbabwe. Contemporary literature abounds with studies that highlight challenges associated with access to educatio... see more


Candra Wijaya, Rasyid Anwar Dalimunthe, Muslim    

ABSTRACT: During the pandemic, as the entire education system of the world shifts to distance learning, parents become important agents of learning, assisting children in understanding how to continue learning, using digital screens, and supporting them ... see more