Бігевіоризм: еволюція та місце в теорії міжнародного портфельного інвестування

Pavlo DZIUBA

doi:10.31617/zt.knute.2019(107)08

Authors

Pavlo DZIUBA Taras Shevchenko National University of Kyiv https://orcid.org/0000-0003-2932-0908

DOI:

https://doi.org/10.31617/zt.knute.2019(107)08

Keywords:

behavioral theory, international portfolio investing, home bias, prospect theory, theory of behavioral portfolio management

Abstract

Background. The existing theory of international portfolio has the complicated gnoceological structure. It is developing on the basis of two existing paradigms and demonstrating more and more interdisciplinary features. Traditional approaches to international portfolio investing rest upon rational behavior of investing individuals whereas this assumption is often not valid in real life. Behavioral theories focus on specific behavioral deviations and biases of investment decisions and can boast frequent empirical testing.
The aim of the article is to determine the place of behavioral portfolio theory in the modern knowledge system of international portfolio investing, to identify the main directions of its relationship with other components of existing knowledge based on the study of its basic features and shortcomings.
Materials and methods. The study grounds on generally accepted scientific methods of research such as analysis and synthesis, abstraction, historical method and systemic approach as well as on specific methods such as logical and graphical modelling etc. The literature and material used include scientific publications and monographs of leading scientists in the field of financial theory, international portfolio investing and behaviorism.
Results. The emergence of behavioral portfolio theory was preceded by theories of more general direction. The prospect theory (1979) contradicts the utility approach. It suggests another method of risk-acceptance decision that is based on such behavioral effects as eliminating and certainty. The SP/A (1987) theory operates the following important people feelings such as security, potential and aspiration. The behavioral portfolio theory was formulated in 2000 and is based on the idea of multiple mental accounting. T. Howard theory of behavioral portfolio management (2014) is of scientific importance. It implies that the main factor of changes in market prices is represented by the emotions of crowds that are not able or do not want to release the brakes of their emotions. Behavioral investors should instead be guided by fundamental characteristics of securities and can achieve success via investing in the direction opposite to the crowds.
Conclusion. Behavioral theory of international portfolio investing is extremely significant, positive and widely spread though it cannot be identified as a paradigm in gnoceological understanding of portfolio investing. Behavioral theories do not explain the decisions of international investors - they only ground on methodology of existing portfolio and value investing paradigms. However, behavioral theories are especially relevant for international portfolio investing since this process includes investors of different countries, cultures, mentality, outlooks, traditions etc. and imply cross-cultural environment.

Author Biography

Pavlo DZIUBA , Taras Shevchenko National University of Kyiv

Ph.D. (economics), Doctor of Economics, Associate Professor
of the Department of International Finance,
Institute of International Relations

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