Application Of System Dynamics In Financial Decisions

Financial operations and accounting is one of the most important processes in any organization that shows its impact on other sectors in the form of financial flows and causal relationships. Therefore, by defining financial processes in the form of system dynamics method, these processes can be modeled and dynamically analyzed. The system dynamics method, by defining the causal relationships between variables, seeks a comprehensive and systematic understanding of the performance of the whole system and the recognition of the internal relationship between the components of the system. On the other hand, investors today consider many factors when choosing an investment. Based on existing approaches, investors' decisions are not made solely on the basis of technical and rational analysis. In this research, in order to investigate the application of system dynamics in financial decisions, the researcher has first obtained a classification of these tactics by using library studies and reviewing previous research. The following is a review of system dynamics and financial decision making. In the end, this research has ended with a conclusion and suggestions.