Behavioral Finance: Psychology, Decision-Making, and Markets - Hardcover

Deaves PhD, Richard; Ackert, Lucy

Hardcover

ISBN 10: 0324661177 ISBN 13: 9780324661170

Publisher: Cengage Learning, 1980

Synopsis

Discover a structured, applied approach to behavioral finance with the first academic text of its kind--Ackert/Deaves' BEHAVIORAL FINANCE: PSYCHOLOGY, DECISION MAKING, AND MARKETS. This comprehensive text--ideal for today's behavioral finance elective--links finance theory and practice to human behavior. The book begins by building upon the established, conventional principles of finance before moving into psychological principles of behavioral finance, including heuristics and biases, overconfidence, emotion and social forces. Readers learn how human behavior influences the decisions of individual investors and professional finance practitioners, managers, and markets. The book clearly explains what behavioral finance indicates about observed market outcomes as well as how psychological biases potentially impact the behavior of managers. Readers see, first-hand, the implications of behavioral finance on retirement, pensions, education, debiasing, and client management. This book spends a significant amount of time examining how behavioral finance can be used by practitioners today. Readers utilize theory and applications in every chapter with a wide variety of end-of-chapter exercises, discussion questions, simulations and experiments that reinforce the book's applied approach.

About this title

Review:

Introduction. Section I: Conventional finance, prospect theory and market efficiency. Chapter 1: Foundations of conventional finance: Expected utility. Chapter 2: Foundations of conventional finance: Asset pricing theory and market efficiency. Chapter 3: Prospect theory, framing and mental accounting. Chapter 4: Limits to arbitrage, anomalies and investor sentiment. Section II: Behavioral science foundations. Chapter 5: Heuristics and biases. Chapter 6: Overconfidence. Chapter 7: Emotion. Section III: Investor behavior. Chapter 8: Investor behavior stemming from heuristics and biases. Chapter 9: The impact of overconfidence on investor decision-making. Chapter 10: Emotion-based investor behavior. Section IV: Social forces. Chapter 11: Social forces: Selfishness or altruism? Chapter 12: Social forces and behavior. Section VI: Market outcomes. Chapter 13: Behavioral explanations for anomalies. Chapter 14: Aggregate stock market puzzles. Section V: Corporate finance. Chapter 15: Irrational markets. Chapter 16: Irrational managers. Section VII: Retirement, pensions, education, debiasing and client management. Chapter 17: Understanding retirement saving and investment behavior and improving DC pensions. Chapter 18: Debiasing, education, and client management. Section VIII: Money management. Chapter 19: Money management and behavioral investing. Chapter 20: Neurofinance and trading.

About the Author:

Lucy F. Ackert is Professor of Finance in the Michael J. Coles College of Business at Kennesaw State University and Visiting Scholar at the Federal Reserve Bank of Atlanta. Dr. Ackert holds a Ph.D. in financial economics from Emory University. Her research interests include individual's use of information and financial market reaction to information. Dr. Ackert has published numerous articles in refereed journals including the American Economic Review, Journal of Accounting Research, and Journal of Finance. In 1993 Dr. Ackert received a Smith Breeden Prize for Distinguished Paper in the Journal of Finance. Her research has received funding from various organizations including the Center for the Study of Futures Markets at Columbia University, the Chicago Board of Trade, the Canadian Investment Review, and the Social Sciences and Humanities Research Council of Canada. In 2008 Dr. Ackert received the Kennesaw State University Distinguished Graduate Scholarship Award. Dr. Ackert has previously taught at Emory University, Berry College, and Wilfrid Laurier University. She has taught a range of courses for graduate as well as undergraduate students, including Behavioral Finance, Corporate Finance, Futures and Options Markets, Financial Institutions, Cases in Finance, Introduction to Statistical Methods, and Microeconomics. Richard Deaves is Professor of Finance at the DeGroote School of Business, McMaster University. There and elsewhere he has taught a variety of courses, including Behavioral Finance, Security Analysis and Portfolio Management, Derivatives, and Applied Investment Management. In addition to McMaster, Dr. Deaves has visited at the University of Toronto, Concordia University, Thammasat University, Tsinghua University, and others. Dr. Deaves research publications have appeared in numerous journals, such as the Journal of Financial and Quantitative Analysis, the Journal of Banking and Finance, and the Journal of Monetary Economics. His main research interests have included behavioral finance, investor knowledge and pension fund design, experimental asset markets, investment fund performance, fixed-income return enhancement, modeling and predicting interest rates, pricing and hedging futures, and the relationship between financial markets and the macroeconomy. Additionally, Dr. Deaves has consulted for large and small private firms as well as government agencies. He has also provided expert testimony in a number of legal proceedings. He has previously published two books: What Kind of an Investor Are You? (Insomniac Press) and Canadian Finance: A Concise Introduction (DFS Press).

About this edition

• Publisher: Cengage Learning
• Publication date: 1980
• ISBN 10: 0324661177
• ISBN 13: 9780324661170
• Binding: Hardcover
• Number of pages: 432