Abstract

Behavioural finance theory suggests that patterns of overconfidence, overreaction and overregulation are common to many investors, and that such groups can be large enough to prevent a company's share price from reflecting economic indicators. Modern empirical studies show that investment decisions are influenced by a number of subjective factors. These subjective factors are behavioural biases. They provide a number of new approaches to explaining investment activity. The article studies the influence of behavioural factors on the investment decisions of managers, especially on the investment decisions of corporate relations subjects. It was found that knowing the main reasons for irrational actions of corporate relations subjects, it is possible to predict and control such situations and, as a result, to avoid negative consequences of irrational behaviour.

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