Psychological factors on irrational financial decision making Case of day-of-the week anomaly
Purpose – This research aims to explore and explain the determinants of irrational financial decision making, especially the day-of-the week anomaly, by using psychological approach. Design/methodology/approach – As it is a conceptual paper, this research explores the psychological biases literat...
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| Format: | Article |
| Language: | English |
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Emeraldin Sight
2012
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| Online Access: | http://ir.unimas.my/id/eprint/9679/ http://ir.unimas.my/id/eprint/9679/1/Psychological%20factors%20on%20irrational%20financial%20decision%20making.pdf |
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| author | Brahmana, Rayenda Khresna Hooy, Chee-Wooi Zamri, Ahmad |
| author_facet | Brahmana, Rayenda Khresna Hooy, Chee-Wooi Zamri, Ahmad |
| author_sort | Brahmana, Rayenda Khresna |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | Purpose – This research aims to explore and explain the determinants of irrational financial decision
making, especially the day-of-the week anomaly, by using psychological approach.
Design/methodology/approach – As it is a conceptual paper, this research explores the
psychological biases literature and links it to the day-of-the week anomaly. Using Ellis’ ABC
(Activating Event, Belief, and Consequences) Model, the authors survey and classify the stimulant as
the occasion that stimulates the psychological biases of investors, and these psychological biases will
bring a consequence in behaviour which is irrationality in weekend effect.
Findings – Adopting Ellis’ ABC model, the paper constructs a theoretical framework that link the
psychological biases and day-of-the week anomaly. The theoretical model is also given as a proposed
model for future empirical research.
Research limitations/implications – This paper contributes to research by giving the theoretical
model and its framework. The latter, future research can examine the proposed psychological biases as
the determinant of day-of-the week anomaly empirically.
Originality/value – This paper conceptually builds a framework and derives a proposed equation
model linking the psychological biases (weather, moon, attention bias, heuristic bias, regret, and
cognitive bias) to the day-of-the week anomaly. |
| first_indexed | 2025-11-15T06:26:41Z |
| format | Article |
| id | unimas-9679 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:26:41Z |
| publishDate | 2012 |
| publisher | Emeraldin Sight |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-96792016-04-14T06:54:38Z http://ir.unimas.my/id/eprint/9679/ Psychological factors on irrational financial decision making Case of day-of-the week anomaly Brahmana, Rayenda Khresna Hooy, Chee-Wooi Zamri, Ahmad HG Finance Purpose – This research aims to explore and explain the determinants of irrational financial decision making, especially the day-of-the week anomaly, by using psychological approach. Design/methodology/approach – As it is a conceptual paper, this research explores the psychological biases literature and links it to the day-of-the week anomaly. Using Ellis’ ABC (Activating Event, Belief, and Consequences) Model, the authors survey and classify the stimulant as the occasion that stimulates the psychological biases of investors, and these psychological biases will bring a consequence in behaviour which is irrationality in weekend effect. Findings – Adopting Ellis’ ABC model, the paper constructs a theoretical framework that link the psychological biases and day-of-the week anomaly. The theoretical model is also given as a proposed model for future empirical research. Research limitations/implications – This paper contributes to research by giving the theoretical model and its framework. The latter, future research can examine the proposed psychological biases as the determinant of day-of-the week anomaly empirically. Originality/value – This paper conceptually builds a framework and derives a proposed equation model linking the psychological biases (weather, moon, attention bias, heuristic bias, regret, and cognitive bias) to the day-of-the week anomaly. Emeraldin Sight 2012 Article NonPeerReviewed text en http://ir.unimas.my/id/eprint/9679/1/Psychological%20factors%20on%20irrational%20financial%20decision%20making.pdf Brahmana, Rayenda Khresna and Hooy, Chee-Wooi and Zamri, Ahmad (2012) Psychological factors on irrational financial decision making Case of day-of-the week anomaly. Humanomics, 28 (4). pp. 236-257. ISSN 0828-8666 http://www.emeraldinsight.com/doi/full/10.1108/08288661211277317 http://dx.doi.org/10.1108/08288661211277317 |
| spellingShingle | HG Finance Brahmana, Rayenda Khresna Hooy, Chee-Wooi Zamri, Ahmad Psychological factors on irrational financial decision making Case of day-of-the week anomaly |
| title | Psychological factors on irrational financial decision
making Case of day-of-the week anomaly |
| title_full | Psychological factors on irrational financial decision
making Case of day-of-the week anomaly |
| title_fullStr | Psychological factors on irrational financial decision
making Case of day-of-the week anomaly |
| title_full_unstemmed | Psychological factors on irrational financial decision
making Case of day-of-the week anomaly |
| title_short | Psychological factors on irrational financial decision
making Case of day-of-the week anomaly |
| title_sort | psychological factors on irrational financial decision
making case of day-of-the week anomaly |
| topic | HG Finance |
| url | http://ir.unimas.my/id/eprint/9679/ http://ir.unimas.my/id/eprint/9679/ http://ir.unimas.my/id/eprint/9679/ http://ir.unimas.my/id/eprint/9679/1/Psychological%20factors%20on%20irrational%20financial%20decision%20making.pdf |