Loss aversion: a qualitative study in behavioural finance

• Published in: Managerial finance Vol. 31; no. 4; pp. 46 - 56
• Main Authors: Kleinübing Godoi, Christiane, Marcon, Rosilene, Barbosa daSilva, Anielson
• Format: Journal Article
• Language: English
• Published: Patrington Emerald Group Publishing Limited 01.04.2005
• Subjects: Agency theory; Behavioral sciences; Behavioural finance; Comparative analysis; Decision making; Efficiency; Efficient markets; Emotions; Energy; Financial planning; Investments; Irrational; Loss aversion; Losses; Pain; Psychoanalytical theory; Rationality; Securities markets; Social psychology; Studies; Unconsciousness; Behavioural finance; Irrational; Psychoanalytical theory; Loss aversion
• ISSN: 0307-4358; 1758-7743
• DOI: 10.1108/03074350510769613

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.