Abstract

Since 1980, with the research on financial behaviors, the assumption indicating the investors’ being rational and believing in the efficiency of the stock markets has been criticized. The literature on behavioral finance asserts that the investors are under the influence of behavioral orientations and biases and their financial decisions at the time of stock purchase and sale also influences their method of making decisions. The main objective of the current research paper is the investigation of the effect of financial behaviors effect on the newly emerging capital markets. The current article is of a “scientific-promotional” type in which library research forms the underlying foundation of the information collection via referring to books, journals and periodicals, internet, various sites and so forth. After analyzing and evaluating the findings obtained herein, the results indicated that financial behaviors positively influence the newly emerging capital markets; therefore, the financial managers should make efforts in line with elevation of the staff’s financial knowledge in the organizations as well as in the capital markets.