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Finance and Credit
 

New finance: Psychological measurement of value

Vol. 27, Iss. 5, MAY 2021

Received: 15 March 2021

Received in revised form: 29 March 2021

Accepted: 12 April 2021

Available online: 28 May 2021

Subject Heading: THEORY OF FINANCE

JEL Classification: G32

Pages: 1156–1177

https://doi.org/10.24891/fc.27.5.1156

Semen Yu. BOGATYREV Financial University under Government of Russian Federation, Moscow, Russian Federation
sbogatyrev@fa.ru

https://orcid.org/0000-0002-6080-5869

Subject. The article addresses emotional factors that affect value under psychological concepts. It describes processes of obtaining information for surveys when measuring emotions, adjusting the evaluation tools, taking into account new analytical capabilities provided by the use of psychological measurement.
Objectives. The study aims at creating a methodology to consider the impact of emotional factors that become apparent under the influence of psychological concepts, on value.
Methods. I employ methods of induction and deduction in survey data processing.
Results. The paper discloses the content of the main methods for recording emotions in the process of making a conclusion about the value by financial decision makers under the influence of psychological concepts. It demonstrates tools for implementing the methods of psychological measurement in valuation. The findings may be helpful in the work of modern appraisers and value analysts. It is especially important to use the tools for measuring emotions in conditions of digital economy, instability and crisis, a change in the market paradigm, distortion of traditional financial and economic indicators, market volatility. The use of psychological concepts complements and expands the classic assessment toolkit, improves the quality of valuation.
Conclusions. The paper concludes on opportunities that financial analysts have, when applying new advances in behavioral finance and modern psychological studies. It outlines prospects for analytical tools development, using new indicators to enhance the efficiency of valuation results.

Keywords: behavioral finance, prospect theory, framing, valuation, behavioral valuation

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