A BEHAVIORAL APPROACH TO THE GLOBAL FINANCIAL CRISIS

The purpose of this paper is to reflect the behavioral biases that led to this global financial crisis. The paper presents briefly the real causes of the crisis (structural and cyclical factors) and puts a greater accent on the behavioral factors. The authors considered to structure the paper in three main pillars: behavioral factors, the collapse of ethical behavior and the role of behavioral finance in studying, regulating and assessment financial risks. The first pillar consists in a brief presentation of the behavioral factors such as: optimism and wishful thinking, overconfidence, greed, regret, pessimism, passing the responsibility, herding - groupthink, anchoring, representativeness biases, informational cascades and "this time is different" syndrome. The second pillar of the paper presents the collapse of ethical behavior that led to the global financial crisis: predatory lending practices, inappropriate compensation schemes, rating agencies behavior, corporate governance reforms and financial institutions opacity in their reporting. The third pillar presents the mismanagement of risk and regulations that led us into this global mess. The paper concludes with the need of integrating biases of human behavior into regulations in order to make them more effective and people become less financially vulnerable.behavioral finance, irrationality, regulation, crisis

BEHAVIORAL BIASES IN TRADING SECURITIES

The main thesis of this paper represents the importance and the effects that human behavior has over capital markets. It is important to see the link between the asset valuation and investor sentiment that motivate to pay for an asset a certain prices over/below the intrinsic value. The main behavioral aspects discussed are emotional factors such as: fear of regret, overconfidence, perseverance, loss aversion ,heuristic biases, misinformation and thinking errors, herding and their consequences.Behavioral finance, Investor psychology, Irrationality, market efficiency, Behavioral biases, limits to arbitrage

„BLACK-SCHOLES MODEL USED TO EVALUATE STOCKS OPTIONS”

Partial differential equation, parabolic Black-Scholes type, is used in evaluating equity options, that paying constant and continue dividends or in evaluate options in which interest rate, volatility and dividend are dependent on time.stocks, options , futures, forward, portofolio, model

NEUROFINANCE: GETTING AN INSIGHT INTO THE TRADER'S MIND

Much of the academic finance theory is based on the assumption that individuals act rationally and behavioral finances treats investorsâ€(tm) choice based by behavioral biases. In contrast, neuro-finance (as a blending of psychology, neurology and finance) attempts to understand behavior by examining the physiological processes in the human brain when exposed to financial risk. Scientists map the mind to learn how fear and greed drive the financial markets. The paper, will briefly present why neurofinance is important and how will be able to provide in the near future a number of effective tools for improved financial decision making.Emotions, Behavioral Finance, Neurofinance, Brain, Risk taking, Affect, Beliefs, Dopamine, fMRI

Reflections on the possibility of using statistical analysis science and innovation in the Republic of Moldova

The evaluation and comparability of statistics indicators of the science and innovation on international background reflect country competitiveness and it position regarding field of science, innovation and distribution of new technologies. Better comprehensions of the factors that contribute at the success in these fields are helped by using proper indicators like instruments of identification of the best practice. But the system of indicators is developed only for the ”science”. The ”innovation” in Moldova is not covered by statistical work and can only be assessed indirectly.peer-reviewe

Boolean network-based model of the Bcl-2 family mediated MOMP regulation

Mitochondrial outer membrane permeabilization (MOMP) is one of the most important points, in majority of apoptotic signaling cascades. Decision mechanism controlling whether the MOMP occurs or not, is formed by an interplay between members of the Bcl-2 family. To understand the role of individual members of this family within the MOMP regulation, we constructed a boolean network-based mathematical model of interactions between the Bcl-2 proteins. Results of computational simulations reveal the existence of the potentially malign configurations of activities of the Bcl-2 proteins, blocking the occurrence of MOMP, independently of the incoming stimuli. Our results suggest role of the antiapoptotic protein Mcl-1 in relation to these configurations. We demonstrate here, the importance of the Bid and Bim according to activation of effectors Bax and Bak, and the irreversibility of this activation. The model further shows the distinct requirements for effectors activation, where the antiapoptic protein Bcl-w is seemingly a key factor preventing the Bax activation. We believe that this work may help to describe the functioning of the Bcl-2 regulation of MOMP better, and hopefully provide some contribution regarding the anti-cancer drug development research