Financial Behavior during COVID-19: Cognitive Errors That Can Define Financial Future - Open Journal of Social Sciences

JSS > Vol.8 No.10, October 2020

Open Journal of Social Sciences

Volume 8, Issue 10 (October 2020)

ISSN Print: 2327-5952 ISSN Online: 2327-5960

Google-based Impact Factor: 0.73 Citations

Financial Behavior during COVID-19: Cognitive Errors That Can Define Financial Future ()

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Download as PDF (Size: 698KB) PP. 259-269

DOI: 10.4236/jss.2020.810017 1,670 Downloads 5,690 Views Citations

Author(s)

Monica Dita Pravita Widya Putri^*, Chaoyi Xu, Larsey Naphtali Akwetteh

Affiliation(s)

School of Economics and Management, Anhui University of Science and Technology, Huainan, China.

ABSTRACT

Purpose: The purpose of this study is to determine the economic effects caused by the crisis impact of the COVID-19 pandemic. Methodology: We explored various kinds of literature from various journals to find out the level of trust and financial behavior of the public during the COVID-19 pandemic. Results and findings: The phenomena that occurred during the crisis due to the COVID-19 pandemic, such as excessive volatility and the confidence of unaffected financial institutions, cannot be explained through the traditional market paradigm. In this paper, we explore this phenomenon from a behavioral finance perspective and discuss some relevant cognitive errors and biases during and after the crisis due to the COVID-19 pandemic. Limitation: The study explains by exploring the phenomenon from the viewpoint of financial behavior and discussing some of the relevant cognitive errors during and after the crisis. We only look at each phenomenon from a psychological point of view and consider its relevance to financial institutions and markets as well as the financial crisis due to the COVID-19 Pandemic.

KEYWORDS

Behavioral Finance, Human Psychology, COVID-19 Pandemic, Financial Crisis

Share and Cite:

Putri, M. , Xu, C. and Akwetteh, L. (2020) Financial Behavior during COVID-19: Cognitive Errors That Can Define Financial Future. Open Journal of Social Sciences, 8, 259-269. doi: 10.4236/jss.2020.810017.

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