Behavioural finance during economic downturn in Lithuania

Abstract

In the global world of information technologies everybody can operate in financial markets and manage financial instruments. However to forecast markets and to earn profit becomes more and more complicated since financial market is affected not only by economic and political processes but also by behaviour of every investor making one or another financial decision. Decisions made by market participants have to be rational; however they often obey cognitive and emotional deviations. The authors strive to ascertain the factors that influence saving and investment behaviour of Lithuanian citizens and to identify behavioural changes in recent years in the article consequently. Accomplished survey shows, that there are positive variations in saving and investment behaviour of Lithuanians however they do not give preferences to savings for retirement.