DEVIATIONS FROM RATIONAL INVESTMENT DECISIONS OF THE MACEDONIAN INVESTORS
DEVIATIONS FROM RATIONAL INVESTMENT DECISIONS OF THE MACEDONIAN INVESTORS

Summary/Abstract: Behavioural finance is an area of study in finance and investment, which in the recent years is in constant focus with rising importance in the social sciences, creating a link between the economy, psychology, sociology and neurosciences in a broader aspect. Behavioural finances provides an opportunity for further research and empirical analyzes in the decision-making process of individuals, groups, and organizations. The main hypothesis in the research is that the irrational behaviour of Macedonian investors while making investment decisions is present and leading behaviour in certain periods while making investment’ decisions. The hypothesis was examined with a survey questionnaire, additionally analyzing the results with the Kolmogorov-Smirnov Test (KS test). The results undoubtedly showed that investors’ decisions are made irrationally by the influence of non-financial and psychological reasons, i.e. excessive self-confidence of investors or political influence on the decisions. The key issue for behavioural finance in the future is not only understanding the irrational behaviour but also finding a solution for predicting and preventing the negative effects on the financial markets, thus creating an opportunity for stable financial markets. The future in the economy is not only inartificial intelligence and technology, but in understanding and managing the decision-making process to rational decisions that would lead to better economic environment with opportunity for economic growth and efficient-markets with speculations at minimum level as possible.

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