Financial crisis in Albania under financial investor behavior perspective

AuthorBlerina Dervishaj
PositionUniversity 'Ismail Qemali', Vlore, Albania
Pages124-133
Vo
l. 4 N
o
.
3
N
ovem
b
er
,
2018
A
cademic Journal o
f
Business,
A
dministration, Law and Social Science
s
II
PCCL Publishin
g
, Graz-
A
ustri
a
I
SSN 2410-391
8
A
cces online at www.ii
p
ccl.or
g
12
4
F
inancial crisis in Albania under nancial investor behavior
p
ers
p
ectiv
e
Sc. Blerina Dervisha
U
niversity
"
Ismail Qemali”, Vlore, Albania
Ab
str
a
c
t
F
inancial markets and also the population’s psychology o
f
Balkan countries is very similar
t
o one another. Being a Balkan country, studying individual nancial behavior in
A
lbania, is
o
f great interest. The potential for future nancial development of the countries of the region
r
epresents a good motivation to study nancial behavior of
A
lbanian investors. The paper
d
isplays an analysis of the most critic moments during the transition of the country's nancial
system
f
rom the
nancial behavior perspective. This paper emphasizes the necessity to
study individual’s nancial behavior in
A
lbania, taking into consideration its signi cance on
m
arket events. The shocks which the nancial system has gone through during most di cult
t
ransition years under behavioral nance perspective will be analyzed, focusing especially on
psychological factors.
K
e
y
words
:
Financial behavior, nancial system, banking system, pyramid scheme, banking
pan
i
c.
I
ntr
oduc
t
io
n
C
ountries o
f
the
E
uro
p
ean continent are recognized
f
or the diversit
y
o
f
di
erent levels
of
p
artici
p
ants, regarding ca
p
italism, knowledge or
nancial ex
p
erience.
A
ll this can
l
ead to di
erent decision-making which can serve as an ideal
p
lat
f
orm
f
or stud
y
ing
nancial behavior.
E
ven though some
E
uro
p
ean economies have been develo
p
ing
f
or
a
l
ong time, ot
h
ers are sti
ll
in t
h
e
d
eve
l
o
p
ment stage, w
h
ere even wit
h
in t
h
is categor
y
,
t
hese countries belong to di
erent levels o
f
develo
p
ment
1
.
1
A
ccording to the level o
f
the size and growth o
f
capital markets, countries are classi
ed into de-
v
eloped capital markets countries and in developing capital markets countries. The last are
f
urther
classi
ed according to the level o
f
development in descending order, as
f
ollows: 1. newly industri-
a
lized countries, 2. emerging countries, 3. "
f
rontiers" countries, 4. countries with underdeveloped
capital. The rank o
f
these countries within these classi
cations is subject to constant changes as the
country development indicators are dynamic. This classi
cation is made
f
rom the most important
i
ndexes in the world. The table presents the classi
cation o
f
countries in
E
urope and the Balkans
a
ccording to the level o
f
market development, according to Morgan Stanley Capital
I
nternational
E
merging Mar
k
et
I
n
d
ex.
Fi
n
a
nc
ial
m
a
r
ket
E
uro
p
e B
alka
n
D
eve
l
o
p
e
d
mar
k
ets
A
ustria, Be
lg
ium, Denmar
k
, Fin
l
an
d
,
France, German
y
,
I
reland,
I
tal
y
,
Net
h
er
l
an
d
s, Norwa
y
, Portuga
l
, S
p
ain,
Sweden, Switzerland
Sweden,
Switzerland
--

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