Proceedings of the 3rd Annual Management, Business and Economics Conference (AMBEC 2021)

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Implementation of Transactional Theory to Unlock the Secrets of Investor Behavior in the Capital Market

Authors
Satia Nur Maharani1, *, Setya Ayu Rahmawati1
1Accounting Department, Faculty of Economics, Universitas Negeri Malang, Malang, Indonesia
*Corresponding author. Email: satia.nur.fe@um.ac.id
Corresponding Author
Satia Nur Maharani
Available Online 10 December 2022.
DOI
10.2991/978-94-6463-026-8_35How to use a DOI?
Keywords
Traditional finance theory; Behavior finance; Transactional theory
Abstract

When traditional financial theory is tested in an actual context, various anomalies have been discovered. Such anomalies are the result of deviations from the norms established by standard financial theory. Further analysis of the anomaly leads to the understanding that the actual observed behavior is not as modeled in traditional financial theory. Through a qualitative approach using the perspective of Lazarus Folkman’s transactional theory, this article presents research findings that investors do not always behave rationally and/or always emotional. The character of human cognitive and affective potentials presents a very wide space of possibilities for collaboration and competition against these two potentials. In the end, the behavior of investors in making economic decisions is very complex and varied. Maximum cognitive with limited affective and vice versa maximal affective with limited cognitive is one of the findings that reflects the collaboration and competition of the potential that produces several kinds of investor behavior. The conceptual framework found in this study has the potential to be tested in subsequent research with a different method approach.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 3rd Annual Management, Business and Economics Conference (AMBEC 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
10 December 2022
ISBN
10.2991/978-94-6463-026-8_35
ISSN
2352-5428
DOI
10.2991/978-94-6463-026-8_35How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Satia Nur Maharani
AU  - Setya Ayu Rahmawati
PY  - 2022
DA  - 2022/12/10
TI  - Implementation of Transactional Theory to Unlock the Secrets of Investor Behavior in the Capital Market
BT  - Proceedings of the 3rd Annual Management, Business and Economics Conference (AMBEC 2021)
PB  - Atlantis Press
SP  - 303
EP  - 315
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-026-8_35
DO  - 10.2991/978-94-6463-026-8_35
ID  - Maharani2022
ER  -