Evaluation of behavioral finance perspective investor preferences

Traditional finance; has been developed based on the assumption that individuals always make rational decisions, that they are not biased in their predictions about the future and that the markets are effective. Consequently in traditional financial theories, assuming that people act rationally, human psychology does not matter; human behaviors are considered mechanical. However, in empirical studies, the findings that would contradict these assumptions have been determined and it was observed that the individuals who were always under the risk of uncertainty and risk did not behave rationally. In order to explain these irrational behaviors of individuals, sociology, as a result of the studies carried out with the contributions of psychology disciplines in particular, it started to take its place in the literature on 'behavioral finance'. Individuals are affected by psychological factors such as emotions, tendencies and prejudices in their predictions about the future and shape their investments under this influence. Behavioral finance also creates models by taking into account the behavioral tendencies of individuals and thus makes the market anomalies that traditional finance cannot explain. In this study; psychological prejudices in which individuals are affected had evaluated from a behavioral finance perspective. A comprehensive domestic and foreign literature review on behavioral finance has been done. In this thesis, the theory and hypothesis that belong of the traditional financial theory had explained extensively and information related to the development of behavioral finance emerged in reaction to traditional financing had given, the anomalies in financial markets and behavioral finance models are examined. In the second chapter, prejudices that guide the financial decisions of investors had explained in order to create the infrastructure for the implementation part, examples of the studies on these prejudices were given and the impact of these prejudices on investor decisions had explained. At this point, it is alleged that psychological prejudices prevent individuals' ability to make optimal investment decisions and this can only be overcome in parallel with the recognition of psychological prejudices and in this context can increase personal wealth. Finally, in order to determine whether these prejudices affect investor decisions and to what extent they affect, a questionnaire form was prepared based on the domestic and foreign literature and 425 participants were interviewed face-to-face on the basis of individual investors and the findings were evaluated within the context of these prejudices. As a result, it is determined that individual investors have rationality in the world filled with risks and uncertainties, they are under the influence of psychological prejudices and therefore they have a tendency to behave more than middle and middle. When the results of the study were evaluated, it was found to be in parallel with the results of similar studies in the literature. This study, on the emerging behavioral finance literature as a reliable source for future studies in Turkey and is expected to contribute and to shed light. Keywords: Behavioral Finance, Individual Investor, Financial Decision, Psychological Bias, Anomaly, Risk and Uncertainty, Behavioral Finance Bias.