Behavioral Finance : Investors, Corporations, and Markets

by Editor: H. Kent Baker; Editor: John R. Nofsinger

• ISBN13: 9780470769683
• ISBN10: 0470769688
• Format: eBook
• Copyright: 2010-10-01
• Publisher: Wiley

Summary

A definitive guide to the growing field of behavioral financeThis reliable resource provides a comprehensive view of behavioral finance and its psychological foundations, as well as its applications to finance. Comprising contributed chapters written by distinguished authors from some of the most influential firms and universities in the world, Behavioral Finance provides a synthesis of the most essential elements of this discipline, including psychological concepts and behavioral biases, the behavioral aspects of asset pricing, asset allocation, and market prices, as well as investor behavior, corporate managerial behavior, and social influences.'ˆ— Uses a structured approach to put behavioral finance in perspective'ˆ— Relies on recent research findings to provide guidance through the maze of theories and concepts'ˆ— Discusses the impact of sub-optimal financial decisions on the efficiency of capital markets, personal wealth, and the performance of corporationsBehavioral finance has quickly become part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.

Table of Contents

Foundation And Key Concepts

Behavioral Finance: An Overview

Traditional versus Behavioral Finance

Behavioral Finance: Application and Pedagogy in Business Education and Training

Heuristics (Rules of Thumb)

Neuroeconomics and Neurofinance

Emotional Finance

Experimental Finance

The Psychology of Risk and Uncertainty

Psychological Influences on Financial Regulation and Policy

Psychological Concepts And Behavioral Biases

Disposition Effect

Prospect Theory and Behavioral Biases

Cumulative Prospect Theory

Overconfidence

The Representativeness Bias

Familiarity Bias

Limited Attention

Other Behavioral Biases

Behavioral Aspects Of Asset Pricing

Market Inefficiency

Preference and Belief Based Models

Behavioral Corporate Finance

Enterprise Decision Making as Explained in Interview-Based Studies

Financing Decisions

Capital Budgeting and Other Investing Decisions

Dividend Policy Decisions

Loyalty, Agency Conflicts and Corporate Governance

Initial Public Offerings

Mergers and Acquisitions

Investor Behavior

Trust Behavior: The Essential Foundation of Financial Markets

Individual Investor Trading

Individual Investor Portfolios

Cognitive Abilities and Financing Decisions

Pension Participant Behavior

Institutional Investors

Derivative Markets

Social Influences

The Role of Culture and Finance

Social Interactions and Investing

Mood

Answers to Chapter Discussion Questions

Index

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