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Evaluation of the Financial
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Procedia Computer Science 00
Preferences ofwww.elsevier.com/locat
(2019)
Science 158 (2019) 761–765 000–000
Individual In-
e/procedia 1
3rd vestors from Behavioral
World Conference on Technology,Finance: Innovation and The Case of Istanbul
Entrepreneurship (WOCTINE)
3rd World Conference on Technology, Innovation and Entrepreneurship (WOCTINE)
a
Mustafa Yurttadur , Havva Ozcelik
b
Evaluation of the FinancialBahçelievler,
Investment Preferences
İstanbul 34000, Turkey
a of Individual In-
Evaluation
3rd Worldof the Financial
Conference Investment
on Technology, Innovation Preferences
and
vestors from Behavioral Finance: The Case of Istanbul
Beylikdüzü, İstanbul 34000, of Individual
Entrepreneurship
Turkey b (WOCTINE)
1 In-
vestors from Behavioral Finance: The Case of Istanbul1
Evaluation of the Financial Investment
Mustafa Yurttadur a
, Havva Preferences
Ozcelikb of Individual In-
Mustafa Yurttadur
vestors from Behavioral
a
Finance:, Havva
Bahçelievler, İstanbul 34000, Ozcelik
The
Turkey
a b
Case of Istanbul1
Abstract Beylikdüzü, İstanbul
Bahçelievler, İstanbul 34000,
34000, Turkey
Turkey
a b

b
Beylikdüzü, İstanbul 34000, Turkey
Mustafa Yurttadura, Havva Ozcelikb
Traditional financial theories describe investorsa Bahçelievler, as rationalist entities but the speculations experienced cannot be explained by
İstanbul 34000, Turkey
existing theories. Behavioral finance argues that individual b investors
Beylikdüzü, İstanbul 34000,do notTurkey
make rational financial decisions and that they are
affected by their prejudices while making financial decisions.
Abstract
In this study, traditional finance theories, behavioral finance, psychological prejudices which are the subject matter of behavioral
Abstract
finance, individual investors and investment instruments, are discussed. Literature review regarding the local and foreign researches
Traditional financial theories describe investors as rationalist entities but the speculations experienced cannot be explained by
hasTraditional
been done financial
and sometheories
explanations haveinvestors
describe
been made in the lightentities
as rationalist
of crucial information about the subject matter.
existing theories. Behavioral finance argues that individual investors dobutnot themake
speculations
rational experienced cannot be
financial decisions andexplained
that theyby are
Abstract
The application part of the study consists of the subject, purpose, methodology, hypothesis, statistical data and analysis
existing theories. Behavioral finance argues that
affected by their prejudices while making financial decisions. individual investors do not make rational financial decisions and that theyofare
the
research.
affected The
bystudy, questionnaires
their prejudices were applied to randomly selected. 1002 individual investors in Istanbul and the obtained data were
In this traditional while
financemaking financial
theories, decisions.
behavioral finance, psychological prejudices which are the subject matter of behavioral
Traditional
analyzed by financial
Factor theories
Analysis, describeTinvestors
İndependent Test, OneasWay rationalist
Variance entities
Analysisbut(ANOVA)
the speculations experienced
and Post-Hoc (Tukeycannot
Test) be explained
Tests. by
The results
In this study, traditional finance theories,
finance, individual investors and investment instruments, behavioral finance, psychological
are discussed. prejudices
Literature reviewwhich are the
regarding thesubject
local andmatter of behavioral
foreign researches
existing
of these theories. reveal
analyses Behavioral
that finance argues
individual investorsthatliving
individual
in investors
Istanbul are do not
not much make rational
rational while financial
making decisions
investment and that they and
preferences are
finance,
has beenindividual
done and investors and investment
some explanations instruments,
have been made inare thediscussed. Literature
light of crucial review regarding
information the localmatter.
about the subject and foreign researches
affected
theyby
thatbeen aretheir prejudices
affected the while
by explanations making financial
psychological prejudices. decisions.
These results are in parallel with similar tests madematter.
in our country.
has done and some have been made in the light of crucial information about the
The application part of the study consists of the subject, purpose, methodology, hypothesis, statistical data and analysis of the subject
In this study, traditional finance theories, behavioral finance, psychological prejudices which are the subject matter of behavioral
The application
research. part of thewere
The questionnaires studyapplied
consiststoofrandomly
the subject, purpose,
selected. 1002 methodology, hypothesis,
individual investors statisticaland
in Istanbul datatheand analysis
obtained of were
data the
finance, individual
Keywords: investors
Behavioral and investment
Finance, Investment, instruments,
Individual are discussed. Literature review regarding the local and foreign researches
Investors
research. The questionnaires were applied to randomly selected. 1002 individual investors
analyzed by Factor Analysis, İndependent T Test, One Way Variance Analysis (ANOVA) and Post-Hoc (Tukey Test) Tests. The resultsin Istanbul and the obtained data were
has been by
analyzed
done and Analysis,
some explanations
Factorreveal
have been made in the light of crucial(ANOVA)
information about the subject matter.
of these analyses thatİndependent T Test, One
individual investors WayinVariance
living IstanbulAnalysis
are not much andwhile
rational Post-Hocmaking(Tukey Test) Tests.
investment The results
preferences and
of The
these application
1 This study
analyses was part
derived
reveal of
that the
from study
the
individual consists
master’s
investors of
thesis the
titled
living subject,
“Evaluation
in purpose,
Istanbul of the
are methodology,
Financial
not much hypothesis,
Investment
rational Preferences
while statistical
making of data and
investment analysis of
preferences andthe
that Individual
they are affected
Investors by the psychological
From Behavioral prejudices.
Finance: The These
Case ofselected. results
Istanbul” 1002are in parallel
which individual
was presentedwith similar tests
at the Istanbul made in our country.
research. The questionnaires were applied to randomly investors
that they are affected by the psychological prejudices. These results are in parallel with similar tests made in our country. in Istanbul and the obtained data were
GelişimbyUniversity
analyzed Social Sciences
Factor Analysis, InstituteTinTest,
İndependent August
One2018. Way Variance Analysis (ANOVA) and Post-Hoc (Tukey Test) Tests. The results
Keywords:
© 2019 The Behavioral
Authors. Finance,
Published Investment,
by Elsevier B.V. living in Investors
Individual
of these analyses reveal that individual investors
Keywords: Behavioral Finance, Investment, Individual Investors Istanbul are not much rational while making investment preferences and
Peer-review
that they are under responsibility
affected by the of the scientific
psychological prejudices. committee
These of are
results the in
3rdparallel
Worldwith Conference
similar testson Technology, Innovation and
made in our country.
Entrepreneurship
1 This study was derived from the master’s thesis titled “Evaluation of the Financial Investment Preferences of
1 ThisstudyInvestors
was derived from the master’s thesisThe
titled “Evaluation of the Financial Investment Preferences
Individual From Behavioral Finance: Case of Istanbul” which was presented at the Istanbul of
Keywords:
Individual
Gelişim Behavioral
Investors
University FromFinance,
Social Sciences Investment,
Behavioral Finance:
Institute TheIndividual
Case
in August Investors
of Istanbul”
2018. which was presented at the Istanbul
Gelişim University Social Sciences Institute in August 2018.
1 This study was derived from the master’s thesis titled “Evaluation of the Financial Investment Preferences of
* Corresponding author. Mustafa Yurttadur. Tel.: 0 536 681 8968.
Individual
E-mail address:Investors From Behavioral Finance: The Case of Istanbul” which was presented at the Istanbul
mustafayurttadur1976@gmail.com
* Corresponding author.Social
Gelişim University HavvaSciences
Ozcelik.Institute
Tel: 0 532 731 0341
in August 2018.
E-mail address: ozcelikhavva@gmail.com

* Corresponding author. Mustafa Yurttadur. Tel.: 0 536 681 8968.

*E-mail
Corresponding author. Mustafa Yurttadur. Tel.: 0 536 681 8968.
address: mustafayurttadur1976@gmail.com
E-mail address: mustafayurttadur1976@gmail.com
* Corresponding author. Havva Ozcelik. Tel: 0 532 731 0341
*E-mail
Corresponding author. Havva Ozcelik. Tel: 0 532 731 0341
address: ozcelikhavva@gmail.com
E-mail address: ozcelikhavva@gmail.com
* Corresponding author. Mustafa Yurttadur. Tel.: 0 536 681 8968.
E-mail address: mustafayurttadur1976@gmail.com
1.Introductıon
* Corresponding author. Havva Ozcelik. Tel: 0 532 731 0341
E-mail address: ozcelikhavva@gmail.com

1877-0509 © 2019 The

©
1.Introductıon The Authors.
Author(s).Published
Published bybyElsevier
ElsevierB.V.
B.V.
1.Introductıon
Peer-review under
Peer-review underresponsibility
responsibilityofofthe
thescientific
scientific committee
committee of of
thethe
3rd3rd World
World Conference
Conference on Technology,
on Technology, Innovation
Innovation and Entrepreneurship
and Entrepreneurship
10.1016/j.procs.2019.09.112

1.Introductıon
1877-0509 © 2019 The Author(s). Published by Elsevier B.V.
1877-0509 © 2019 The Author(s). Published by Elsevier B.V.
 Mustafa Yurttadur, Havva Ozcelik / Procedia Computer Science 00 (2019) 000–000
2
2
762 Mustafa Yurttadur et al. / Procedia Computer Science 158 (2019) 761–765
Finance is to provide to be found the funds that an enterprise is in need of and also used related funds at optimum. 2
Another function of a fund is to keep the balance between risk and winnings. Therefore, the fields which finance mostly
Finance is to provide to be found the funds that an enterprise is in need of and also used related funds at optimum. 2
focus on are issues like financial management, financial markets, and investment.
Another function of a fund is to keep the balance between risk and winnings. Therefore, the fields which finance mostly
Deciding is essential in finance discipline. Modern economics defines people as rational beings. For Traditional
focus on are issues like financial management, financial markets, and investment.
Finance Theories, people judiciously act in both consuming and having an investment. In other words, related theories
Deciding is essential in finance discipline. Modern economics defines people as rational beings. For Traditional
accept that people act only rationalistic by rejecting their psychological sides.
Finance Theories, people judiciously act in both consuming and having an investment. In other words, related theories
However, Behavioral Finance has attained its place in the finance literature to fill the gap which is created by market
accept that people act only rationalistic by rejecting their psychological sides.
anomalies that Conventional Finance Theories cannot completely explain. While traditional finance accepts investors
However, Behavioral Finance has attained its place in the finance literature to fill the gap which is created by market
only as rational beings, behavioral finance accepts that feelings and cognitive tendencies of human are also effective in
anomalies that Conventional Finance Theories cannot completely explain. While traditional finance accepts investors
finance markets. In a manner of speaking, it is the status of psychological tendencies in financial deciding behaviors.
only as rational beings, behavioral finance accepts that feelings and cognitive tendencies of human are also effective in
finance markets. In a manner of speaking, it is the status of psychological tendencies in financial deciding behaviors.
2. Traditional Finance Theories
2. Traditional Finance Theories
The traditional approach that started by Expected Utility Theory which was suggested by Neuman and Morgenstern
in 1944 continued by Efficient Markets Hypothesis and Capital Asset Pricing Model that were respectively suggested
The traditional approach that started by Expected Utility Theory which was suggested by Neuman and Morgenstern
by Fama and Sharpe. They enlightened how investors need to act instead of revealing how investors act in reality.
in 1944 continued by Efficient Markets Hypothesis and Capital Asset Pricing Model that were respectively suggested
by Fama and Sharpe. They enlightened how investors need to act instead of revealing how investors act in reality.
3. Expectancy Theory
3. Expectancy Theory
Kahneman pointed out that much as a human is accepted as an agent who acts rationally and prefers the alternative
which will carry
Kahneman his benefit
pointed out thattomuch
maximum, this situation
as a human is out
is accepted of agent
as an reality;
whotheacts
reality is thatand
rationally human is athe
prefers being who has
alternative
several psychological perceptions and social circle.
which will carry his benefit to maximum, this situation Because human is a being who is affected by a social
is out of reality; the reality is that human is a being who has circle; can
affect social circle; has feeling and perceptions. 3
With reference to expectancy theory, people go through
several psychological perceptions and social circle. Because human is a being who is affected by a social circle; can two phases
duringsocial
affect the decision-making process.
circle; has feeling Related stages
and perceptions. 3 arereference
With the correction period and
to expectancy the evaluation
theory, people goperiod.
through Thetwoevaluation
phases
process is divided into two sections in its own; value function and weighted probability.
during the decision-making process. Related stages are the correction period and the evaluation period. The evaluation
process is divided into two sections in its own; value function and weighted probability.
4. Individual Investors’ Psychological Prejudices that are Analyzed within the Scope of Behavioral Finance
4. Individual Investors’ Psychological Prejudices that are Analyzed within the Scope of Behavioral Finance
Since the person is a biopsychosocial being, persons act different from each other and reveal feeling and perceptions
in Since
financialthe decisions
person is ajust as all the decisions
biopsychosocial being, that are taken
persons throughout
act different from life.
eachHumanity is affected
other and reveal by and
feeling personal, social-
perceptions
environmental
in factorsjust
financial decisions whileas making investment
all the decisions thatdecisions;
are takenaccordingly, theirHumanity
throughout life. decisions are various.by
is affected Moreover,
personal,investors
social-
are in a tendency
environmental to decide
factors whileby evaluating
making the alternatives
investment decisions; and analyzingtheir
accordingly, by reviewing their
decisions are experiences
various. Moreover,in theinvestors
decision-
making
are process. As
in a tendency the alternatives
to decide multiply,
by evaluating evaluation grows
the alternatives difficult by
and analyzing andreviewing
the decision-making process
their experiences in becomes more
the decision-
complex.
making This circumstance
process. causesmultiply,
As the alternatives investorsevaluation
to develop a heuristic
grows (short
difficult cut)decision-making
and the in their mind. Muchprocessas becomes
investorsmoreattach
importance
complex. to experiences,
This circumstanceenvironmental
causes investorsinteractions,
to developheuristics
a heuristicuse and cut)
(short trends, they cannot
in their stop some
mind. Much mistakes
as investors while
attach
having an investment.
importance to experiences, environmental interactions, heuristics use and trends, they cannot stop some mistakes while
Investigators
having have published those psychological biases of investors. They obtained practical results on 50 biases
an investment.
andInvestigators
meaningly classified them between
have published each other. Such
those psychological biasesa bias classification
of investors. Theyisobtained
beneficial; however,
practical there
results onis50nobiases
theory
on the
and causes of
meaningly being biased.
classified
4
David each
them between Hirshleifer collected
other. Such a biasmistakes of investors
classification in investment
is beneficial; however,decisions
there is nounder four
theory
groups
on in his of
the causes 2001 dated
being study.
biased. 4 Related four titles are as follows; tendency to not properly evaluate own situation;
David Hirshleifer collected mistakes of investors in investment decisions under four
information
groups in hisand
2001communication-induced
dated study. Related four tendencies; emotional
titles are tendencies
as follows; tendency and
to social interactions.
not properly
5
evaluate own situation;
information and communication-induced tendencies; emotional tendencies and social interactions. 5

5. Individual Investors
5. Individual Investors
Individual investors are the investors who make a transaction on a relatively small scale on its own behalf. 6 Individual
Individual investors are the investors who make a transaction on a relatively small scale on its own behalf. 6 Individual
2Kıyılar Murat, Akkaya Murat. (2016) “Behavioral Finance”, Literature Publishing, Istanbul: 1-15.
23Kıyılar
Kahneman Daniel,
Murat, Tversky
Akkaya Murat.Amos.
(2016)(1979) “Prospect
“Behavioral Theory:
Finance”, An Analysis
Literature of Desicion
Publishing, Under
Istanbul: Risk.’’
1-15. Econometrica 47 (2): 262-292.
34 Pompian Michael M. (2006)” Behavioral Finance and Wealth Management”, John Wiley & Sons, Inc., New Jersey: 48-50.
Kahneman Daniel, Tversky Amos. (1979) “Prospect Theory: An Analysis of Desicion Under Risk.’’ Econometrica 47 (2): 262-292.
45 Hirshleifer David (2001) “Investor Psychology and Asset Pricing.’’ Journal of Finance 56 (4): 1541-1553.
Pompian Michael M. (2006)” Behavioral Finance and Wealth Management”, John Wiley & Sons, Inc., New Jersey: 48-50.
56 Hirshleifer
Karan MehmetDavidBaha (2013)
(2001) Investment
“Investor Analysis
Psychology andand Portfolio
Asset Management”
Pricing.’’ Gazi Bookstore,
Journal of Finance Ankara: 718-720.
56 (4): 1541-1553.
6
Karan Mehmet Baha (2013) Investment Analysis and Portfolio Management” Gazi Bookstore, Ankara: 718-720.
 Mustafa Yurttadur, Havva Ozcelik / Procedia Computer Science 00 (2019) 000–000

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Mustafa Yurttadur et al. / Procedia Computer Science 158 (2019) 761–765 763

investors can have investment by their own decisions as well as related investors can also have investment by receiving
help from investment advisors. People who are in the opinion of having an investment and also people who do not know
how to invest can receive help from investment advisors. Much as it is thought that advisors conduct investments of
people, final decisions are made by investors themselves

6. Research Subject and Objective

People act rationally in many fields of life or suppose their behaviors are rational. Especially they decide within the
scope of their own logic; these decisions are completely personal and affected by several psychological factors.
While investment preferences are affected by demographic factors such as age, gender, occupation, income status,
and educational background; psychological and emotional perceptions of individuals shape the investments at the same
time. The subject of this research was to evaluate psychological biases of people who live in Istanbul within the scope
of behavioral finance.
Istanbul is the most crowded city of Turkey in terms of population. It is the city where is culture and art are at the
maximum; was the capital of civilizations; harbored many cultural heritages. Istanbul is also the city where citizens
mostly demand because of several educational and business opportunities. This research was conducted to reveal what
kind of psychological biases affect individual investors who live in Istanbul.

7. The methodology of Research and Analysis of Data

Survey method was utilized to determine the investment preferences of individual investors and evaluate related
preferences in terms of behavioral finance. The related survey was prepared by benefiting from 2012 dated Adam
Böyükaslan’s thesis study called ‘’Analyzing Factors that Direct Individual Investors to Invest in Financial Investment
Instruments in Terms of Behavioral Finance: Afyonkarahisar Province Case’’. 1002 individual investors who live in
Istanbul were applied to the survey.
The first part of the survey consisted of questions that determine socio-demographic features (i.e., age, gender, edu-
cational background) of individual investors.
There were questions that specify financial profiles (i.e., how much of their incomes is reserved for investment; types
of financial instruments used; the number of years they have invested) of individual investors in the second part of the
survey.
There were some statements of psychological biases that individual investors used to determine the investment pref-
erences in the third and last chapter of the survey. It was asked for the participants to evaluate related statements via a
5-point Likert scale.
Data that were collected by both face to face method and internet were analyzed by Factor Analysis, Independent t-
test, One-way analysis of variance (ANOVA) and post-hoc (Tukey Test) tests via SPSS 21.0 statistical program.
Reliability of data in research was tested by Cronbach’s Alpha reliability coefficient. With reference to the analysis
result, Cronbach’s Alpha coefficient is 0,917. We can say based on this result that data are at a reliable level.

8. Conclusion

• Investment decisions of individual investors are too complex to be explained by traditional financial theories. Much
as traditional finance theories define investors as rational beings, psychological science reveals that people display
different behaviors by affecting by several biases while making financial investment decisions.
• Investors whose chief goal are more winnings, permanent income and wish for capital maintenance have relatively
preferred gold, domestic currency deposit, and foreign exchange deposit. A clear majority of investors focus on these
three investment instruments and do not prefer other investment instruments; their lack of knowledge on this issue
can be understood by two previous items. There is a need for organizing informative training about investment in-
struments for investors who cannot perform portfolio diversification.
• Individual investors generally have an investment as the result of information based on the internet, newspaper and
television and their own evaluation. Attention-grabbing finance ads should be placed on web pages for investors who
actively use social media; related ads need to be as clear as light.
• For our research data, representation tendency is seen in individuals whose income is high and who can share a good
 Mustafa Yurttadur, Havva Ozcelik / Procedia Computer Science 00 (2019) 000–000
Mustafa Yurttadur, Havva Ozcelik / Procedia Computer Science 00 (2019) 000–000
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764 Mustafa Yurttadur et al. / Procedia Computer Science 158 (2019) 761–765

part of their income for investment according to present conditions. Just as in the law of small numbers, following
part
ideasofdirect
their them
income for investment
to this psychological according
bias; a bigto present
universe conditions.
is represented Just asby in the law
a small of small
sample; numbers,
funds that have following
earned
ideas direct them to this psychological bias; a big universe is represented by a
in recent years will earn in the coming years as well. However, there is no statistical data which prove that investors small sample; funds that have earned
in recent years will earn in the coming years as well. However, there is no
have acquired more by the related idea. Individuals who show this tendency are freelancers and wage workers in the statistical data which prove that investors
have
private acquired
sector make more us by think
the related
that theyidea.areIndividuals
hand in glove whowithshow thethis tendency
market moreare thanfreelancers
people who andworkwageinworkers in the
other sectors.
private sector make us think that they are hand in glove with the market more
First of all, following the developments in financial markets; following investment instruments that have a possibilitythan people who work in other sectors.
First of all, following
to surprise; analyzing the riskdevelopments
and revenue ofininvestment
financial markets; following
alternatives properly investment instruments
will be possible that have the
by increasing a possibility
financial
to surprise; analyzing
literacy of investors. risk and revenue of investment alternatives properly will be possible by increasing the financial
• literacy of investors.
Investors who show overconfidence tendency are observed in the middle-aged segment with low income and low
• Investors who show
level of education. overconfidence
Investment decisions tendency
of people are who
observed
showed in related
the middle-aged
tendency are segment
directedwith
bylow income
common and low
senses, not
level of education. Investment decisions of people who showed related tendency
being inclined. This is because it will be to the point that encouraging low-income individuals for individual retire- are directed by common senses, not
being inclined. This is because it will be to the point that encouraging low-income
ment with state subsidy; these low-income people associate winnings to their own abilities; they also associate losses individuals for individual retire-
ment
to badwithluck.state subsidy; these low-income people associate winnings to their own abilities; they also associate losses
• to bad
Investors luck.
who are afraid of regret generally consist of middle-aged individuals and freelancers. It observed that these
• Investors
investors who who are do notafraidmuchof regret
budget generally consist of
for investment middle-aged
prefer portfolioindividuals
diversification and because
freelancers. It observed
of fear of risk. that these
Although
investors who do not much budget for investment prefer portfolio diversification
portfolio diversification is a good choice to minimize the risk, it is not enough alone. Investors who are afraid of because of fear of risk. Although
portfolio
regret need diversification
to be supported is abygood choice
personal to minimizetraining
development the risk, to itdevelop
is not enough alone. Investors who are afraid of
self-confidence.
• regret need to be supported by personal development training to develop
Investors who have investment by a social tendency consist of people above middle age. They are in various socialself-confidence.
• Investors
environments whoby have
their investment by a social tendency
age; this circumstance causes them consist of people
to have abovevia
investment middle age. They channel
an information are in various social
called friend
environments by their age; this circumstance causes them to have investment
recommendation. Moreover, jumping on the bandwagon means to cut corners for old aged adults. Therefore, both via an information channel called friend
recommendation.
investor and investor’s Moreover,
friendjumping
should beoneducated
the bandwagon
at the same meanstime. to Itcut corners
will for oldtoaged
be possible expandadults. Therefore,
financial awarenessboth
investor and investor’s friend should
of related investors by public service ads in social media.be educated at the same time. It will be possible to expand financial awareness
• of related
The emotionalinvestors by public
tendency is seenservice ads in social media.
as a psychological bias that is displayed by housewife investors. Since the investor
• The emotional tendency is seen as
with an emotional tendency is afraid of disappointment, a psychological bias regret,
that is displayed by housewife
and uncertainty; he/she doesinvestors. Since the
not diversify hisinvestor
portfo-
with an emotional tendency is afraid of disappointment, regret, and uncertainty;
lio and selects the investment instrument that he knows well. This is because there is a need for publications he/she does not diversify his portfo-via
lio andmedia
social selectstothe investment
explain instrument
the importance of that he knows
portfolio well. Thisfor
diversification is risk
because there is and
minimizing a need
types forofpublications
investment via in-
social
struments.media to explain the importance of portfolio diversification for risk minimizing and types of investment in-
• struments.
People who show availability tendency are the wageworkers in public or private sector and the ones with middle
• People
income.who It is show
so normalavailability
for them tendency
to evaluateare the wageworkers
investment choicesinwith publictheormost
private sectoroption
advisable and the ones
that theywith middle
frequently
income. It is so normal for them to evaluate investment choices with the
encounter. Therefore, company or institutions ought to develop rational decision-making skills of their employeesmost advisable option that they frequently
encounter.
about Therefore,
investment company
instruments andorfinancial
institutions ought to develop rational decision-making skills of their employees
literacy.
• about investment instruments and financial literacy.
For research findings, information and communication-driven tendencies (cognitive tendencies) are observed in in-
• For research
vestors findings,
who cannot information
interpret and communication-driven
information in a proper way in spite tendencies (cognitive
of closely following tendencies)
finance are observed
markets. in in-
It can be
vestors who cannot interpret information in a proper way in spite of closely
restrained investors who show this tendency from making mistakes and incorrect evaluations by giving them finan- following finance markets. It can be
restrained investors
cial literacy training. who show this tendency from making mistakes and incorrect evaluations by giving them finan-
• cialaddition
In literacy to training.
all these, extremely optimism tendency is seen in large families with low socio-economic structure.
• In addition to
Extremely optimistic all these, extremely
investors have optimism tendencyabout
an expectation is seen
their in financial
large families with low
investment socio-economic
estimations for future structure.
better-
Extremely optimistic investors have an expectation about their financial
than-average. This investor group with low-income should be encouraged to investment instruments such as individ- investment estimations for future better-
than-average. This investor group with low-income
ual retirement with state subsidy to avoid possible disappointments. should be encouraged to investment instruments such as individ-
• ual
Withretirement
referencewith state subsidy
to research results, to suggestions
avoid possible thatdisappointments.
can direct individual investors to rationality can be aligned as
• With
follows;reference to research results, suggestions that can direct individual investors to rationality can be aligned as
• follows;
Governments should prepare public service ads about what investment instruments are; related ads should be pub-
• Governments
lished on television, shouldnewspaper,
prepare public service ads
and journals in aabout
plain what
languageinvestment instruments are; related ads should be pub-
for everyone.
• lished on television, newspaper, and journals in a plain language for everyone.
First of all, there ought to be created an economization awareness. So then, education should start from childhood;
• First
money of box
all, there
accountsought of tobanks
be created
need to anbeeconomization
made attractive awareness.
by motivatingSo then, education
children should
by gifts whenstartbalances
from childhood;
of these
money box accounts
accounts come to a certain level. of banks need to be made attractive by motivating children by gifts when balances of these
• accounts come to a certain level.
Financial literacy training should be given as a lesson to university students. By this means, the young can know how
• Financial
they can have literacy training should
an investment whenbethey givengetasa astart
lesson to university students. By this means, the young can know how
in business.
• they can have an investment when they get a start in business.
Financial consulting companies and especially organizations that service via the internet ought to provide training
• Financial
for creating consulting
financial companies
awareness via andsocial
especially
media. organizations that service via the internet ought to provide training
for creating financial awareness via social media.
• Ads that place in social media should give financial information as well. Related ads should appeal to the eye and be
Ads
• in that place
a plain in social media should give financial information as well. Related ads should appeal to the eye and be
language.
in a plain language.
• Public and private companies ought to take investment instruments and financial literacy training into the scope of
Public and training.
• on-the-job private companies ought to take investment instruments and financial literacy training into the scope of
on-the-job training.
 Mustafa Yurttadur, Havva Ozcelik / Procedia Computer Science 00 (2019) 000–000

5
Mustafa Yurttadur et al. / Procedia Computer Science 158 (2019) 761–765 765

• Statesmen should make individual retirement attractive by increasing state subsidy for people with low income to
economize.
• Investors who want to take a risk in investments need to be informed about how risks can be minimized by portfolio
diversification.
• Individual investors should be informed about ways to know themselves and control their feeling and thoughts via
personal development seminars.
• Investors’ behaviors should be monitored by future studies in behavioral finance. Information needs to be used both
academic purpose and mirror to investors.

References

[1] Hirshleifer David (2001) “Investor Psychology and Asset Pricing.’’ Journal of Finance 56 (4): 1541-1553.
[2] Kahneman Daniel, Tversky Amos. (1979) “Prospect Theory: An Analysis of Desicion Under Risk.’’ Econometrica 47 (2): 262-292.
[3] Karan Mehmet Baha (2013) Investment Analysis and Portfolio Management” Gazi Bookstore, Ankara: 718-720.
[4] Kıyılar Murat, Akkaya Murat. (2016) “Behavioral Finance”, Literature Publishing, Istanbul: 1-15.
[5[ Pompian Michael M. (2006)” Behavioral Finance and Wealth Management”, John Wiley & Sons, Inc., New Jersey: 48-50.