Neurofinance : A Conceptual Framework

Abstract

: Recent research in finance and brain science has widely acknowledged that sentiments perform a substantial function in decision-making. This understanding contrasts with the twentieth-century view of finance, which advanced by formulating models based on theoretical approaches, revealing that individuals made financial decisions by demonstrating rational behaviors. Neurofinance is a growing field of study that seeks to improve insight of financial decision-making through integrating cognitive and brain science perspectives with financial theories. This review strives to explore the notion of Neurofinance. tracing its historical development and examining its intersections with other disciplines. The paper utilized resources such as articles, books, and theses in the field to synthesize fundamental findings and trends in Neurofinance research.