Testing the basic psychological tendencies of behavioral finance on generation Z: A survey application at Aydin Adnan Menderes and Pamukkale Üniversities

Throughout history, people make various mistakes when faced with decision-making situations. Until the 1950s, traditional finance theories were based on the assumption that people did not make these mistakes. Scientists were working with various theories with the idea that people at the decision-making stage would make rational decisions and would choose the option that maximizes their own interests. Towards the middle of the 20th century, it was understood that people made erroneous choices in the decision-making process due to various external factors, past experiences and concerns about social rejection. During this period, many studies were carried out in this field together with finance and economics. As a result of the studies, it has been observed that people are not rational at decision moments, do not turn to the option that maximizes their interests, and make mistakes in many different ways. This research area is named as Behavioral Finance, based on the behavior of individuals in decision-making moments. In this study, cognitive biases of Behavioral Finance, which have emerged with years of scientific knowledge, were examined on university freshmen within the Z generation. In the study, Traditional Finance Theories are discussed and conveyed in general terms. The foundation, history, theories and cognitive biases of Behavioral Finance are examined in general terms and explained with various examples. The generations within the scope of the aim of the study were transferred in general and the characteristics of the generations were mentioned. Within the scope of the findings, the results of the research were compared with the results of the previous research and it was observed that the results were compatible with the past data. Based on this, it can be said that the cognitive biases found in Behavioral Finance remain valid regardless of the age, personality and generational differences of the participants.