Abstract
Behavioral finance is an area or sub-discipline of behavioral economics that examines the real financial behavior and decision-making of people, including the knowledge of psychology and sociology. The objective of this paper was to identify and investigate the impact of significant cognitive, psychological and emotional factors affecting the financial decision-making of the shareholders of woodworking and furniture manufacturing and trading enterprises. This could lead to the design of decision-making concepts which take into account not only cognitive but also psychological and emotional factors and their influences on decision-making process, which could positively affect the sustainable development of the aforementioned types of enterprises. The mapping of the addressed issue was carried out by means of an empirical survey in the practice of the Slovak woodworking and furniture manufacturing and trading enterprises in the form of a questionnaire. The results of the survey were evaluated by descriptive, graphical and mathematical-statistical methods. Conclusions and recommendations were formulated based on the identification of key behavioral aspects (knowledge, security, freedom and sadness), the implementation of which could contribute to eliminating negative deviations and errors in the financial decision-making process of shareholders of woodworking and furniture manufacturing and trading enterprises.
Highlights
IntroductionPeople make decisions, large and small, important and less important. Cognitive psychology and economics attempt to understand how people think about their choices
Every day, people make decisions, large and small, important and less important
Due to the value of the p level (0.00000), the null hypothesis was rejected in favor of the alternative hypothesis with confirmation of the existence of dependence between the shareholders of WW and furniture manufacturing and trading (FMT) enterprises and certainty as a psychological factor
Summary
People make decisions, large and small, important and less important. Cognitive psychology and economics attempt to understand how people think about their choices. There are several factors which influence decision-making These factors, including past experience [1], cognitive biases [2,3], age and individual differences [4], influence the choices people make. Understanding these factors is important to specifying what decisions are made and why. Factors that influence this process may have impact on the final results. It can be said that heuristics and the related factors influencing decision-making are significant aspects of critical thinking [6]. There are some indications that what benefits those learning how to make relevant and the best decisions in various specific situations can be taught [7]
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