Advances in Behavioral Finance

Advances in Behavioral Finance
Author :
Publisher : Russell Sage Foundation
Total Pages : 628
Release :
ISBN-10 : 0871548445
ISBN-13 : 9780871548443
Rating : 4/5 (443 Downloads)

Book Synopsis Advances in Behavioral Finance by : Richard H. Thaler

Download or read book Advances in Behavioral Finance written by Richard H. Thaler and published by Russell Sage Foundation. This book was released on 1993-08-19 with total page 628 pages. Available in PDF, EPUB and Kindle. Book excerpt: Modern financial markets offer the real world's best approximation to the idealized price auction market envisioned in economic theory. Nevertheless, as the increasingly exquisite and detailed financial data demonstrate, financial markets often fail to behave as they should if trading were truly dominated by the fully rational investors that populate financial theories. These markets anomalies have spawned a new approach to finance, one which as editor Richard Thaler puts it, "entertains the possibility that some agents in the economy behave less than fully rationally some of the time." Advances in Behavioral Finance collects together twenty-one recent articles that illustrate the power of this approach. These papers demonstrate how specific departures from fully rational decision making by individual market agents can provide explanations of otherwise puzzling market phenomena. To take several examples, Werner De Bondt and Thaler find an explanation for superior price performance of firms with poor recent earnings histories in the tendencies of investors to overreact to recent information. Richard Roll traces the negative effects of corporate takeovers on the stock prices of the acquiring firms to the overconfidence of managers, who fail to recognize the contributions of chance to their past successes. Andrei Shleifer and Robert Vishny show how the difficulty of establishing a reliable reputation for correctly assessing the value of long term capital projects can lead investment analysis, and hence corporate managers, to focus myopically on short term returns. As a testing ground for assessing the empirical accuracy of behavioral theories, the successful studies in this landmark collection reach beyond the world of finance to suggest, very powerfully, the importance of pursuing behavioral approaches to other areas of economic life. Advances in Behavioral Finance is a solid beachhead for behavioral work in the financial arena and a clear promise of wider application for behavioral economics in the future.


Advances in Behavioral Finance Related Books

Advances in Behavioral Finance
Language: en
Pages: 628
Authors: Richard H. Thaler
Categories: Business & Economics
Type: BOOK - Published: 1993-08-19 - Publisher: Russell Sage Foundation

DOWNLOAD EBOOK

Modern financial markets offer the real world's best approximation to the idealized price auction market envisioned in economic theory. Nevertheless, as the inc
Advances in Behavioral Finance
Language: en
Pages: 619
Authors: Richard H. Thaler
Categories: Business & Economics
Type: BOOK - Published: 1993-08-19 - Publisher: Russell Sage Foundation

DOWNLOAD EBOOK

Modern financial markets offer the real world's best approximation to the idealized price auction market envisioned in economic theory. Nevertheless, as the inc
Advances in Behavioral Economics
Language: en
Pages: 768
Authors: Colin F. Camerer
Categories: Business & Economics
Type: BOOK - Published: 2004 - Publisher: Princeton University Press

DOWNLOAD EBOOK

Today, behavioral economics has become virtually mainstream.
The Behavioural Finance Revolution
Language: en
Pages: 269
Authors: Riccardo Viale
Categories: BUSINESS and ECONOMICS
Type: BOOK - Published: 2018 - Publisher: Edward Elgar Publishing

DOWNLOAD EBOOK

Financial markets are complex. Regulators strive to predict ways in which they can malfunction and create rules to prevent this from happening, yet behavioural
Behavioral Finance and Decision-making Models
Language: en
Pages: 0
Authors: Tripti Tripathi
Categories: Business & Economics
Type: BOOK - Published: 2019 - Publisher: Business Science Reference

DOWNLOAD EBOOK

Behavioral finance challenges the traditional assumption that individuals are rational by focusing on the cognitive and emotional aspects of finance, which draw