Behavioral aspects of financial relations: trust as an asset of investment services markets

Abstract

This article deals with a problem of establishing trust between market counterparties in unstable business conditions. The author recognises the contributing factors of the formation of a coherent investment psychology and capital markets.
The author examines the specifics of the interdependence between trust and economic behavior on the market of investment services (banks, other financial institutions and their clients), discloses specific features of the development of behavioral economics and finances, reveals the risks and consequences of information asymmetry disclosed with respect to the threat of financial speculations as crisis predictors in various fields above all in the credit. Reasonable areas of economic development stabilization are the basis for restoring confidence and increasing the relevance of market counterparts.
It should be noted that the development of investment market is largely determined by the interests the of business transactions participants - financial and other companies and their clients-partners. It is emphasized that this especially concerns the secondary market, where the expectations, likelihood and trust between market counterparts create opportunities for joint investment. It is substantiated that the practical knowledge of behavioral economics and behavioral fines lie in the fact that their study allows to assess and forecast investment preferences of investors as clients of banks and non-bank structures.
In the investment preferences of market participants, purely economic factors appear to be not predominant in choosing financial instruments for resources investment or attraction. Economic factors for investment development are accompanied with psychological, trust, religious, ethical, and cultural. big role is also allocated to urgent incentive. Investment psychology plays the role of a vital factor in economic choice - both personal and collective.
In modern conditions, the state (central bank and other regulators) positions itself as a formalized subject of behavioral finance. Along with the changes in the investment activity of market partners, this formalization has a statutory and instrumental basis. The role of the state and state regulators in stabilizing markets will continue to increase.