Evaluation of participation banking within the scope of behavioral finance

In modern classical economic theories, human beings are defined as an asset that thinks only of their interests, serves their personal interests, and aims to maximize their benefits and profits. This human model, defined as "Homo Economicus" that means economic person, puts its interests in the main purpose of his life. In this model, it is asserted that human beings act completely to satisfy their self-feeling in their investment decisions. Generally, even if economic theories are defined in this way, it is observed that human beings do not always behave rationally in their investment decisions. The movements of individuals making such investment decisions appear to contradict the human model expressed in classical economic theories. Classical economic theories have been difficult to explain the decisions that individuals are not rational in their investments. Therefore, gap has emerged in classical economic theories because it has been revealed that people consider different variables in their investment decisions besides risk and return. The concept of "behavioral finance" has emerged to explain such behavior of people and to fill the gap in classical economic theories. According to behavioral finance, people can decide on their investments in their psychological, cultural and sociological variables apart from economic return, risk and profit variables. In this study, by means of survey method on individual inverstors in Erzincan provience, the evaluation of participation banking within the scope of behavioral finance has been tried. Factors influencing the preference of participation banking were analyzed within the scope of behavioral finance. In this extent, a survey was conducted with 404 individual investors and the data obtained were analyzed using the SPSS 22.0 statistics program. After the descriptive statistical findings of all the questions in the questionnaire were obtained, (OneWay ANOVA test) one-way analysis of variance was performed for the analysis of the first hypothesis formed between demographic, then participation banking and findings, and then between participation banking and behavioral finance. İt was determined that individuals prefer strongly to participate banking, and they are strongly influenced by many factors other than financial factors. Keywords: Behavioral Finance, Participation Banking, Investor Behavior