THE ROLE OF BEHAVIORAL FINANCE IN ENTERPRISE MANAGEMENT

The definition of the concept of "behavioral finance" has been given, the historical development of theoretical approaches to its definition has been represented. It has been emphasized that studying the concepts of behavioral finance, traditional finance is still the centerpiece, though the behavioral aspects of psychology and sociology are the integral catalysts within this field of study. It has been mentioned that the foundation of behavioral finance can be considered as the prospect theory, which states that managers are risk-seeking in the domain of losses and riskaverse in the domain of gains. The use of decomposition methods of prospect theory and the theory of expected utility, intended for decision analysis under uncertainty at Ukrainian enterprises have been proved to be reasonable.