The Financial Consequences of Behavioural Biases

Beschreibung

This book provides a concise analysis of behavioural biases and their implications for financial decision making. The book is written in the normative tradition, arguing strongly for the superiority of behavioural finance with respect to explaining observed phenomena in financial markets. It offers some unique features, including a discussion of the issue of conspiracy theory and how behavioural biases lead to belief in conspiracy theories. Lingering belief in the principles of neoclassical finance is attributed in part to the doctrine of publish or perish, which dominates contemporary academia. The offshoots of behavioural finance are discussed in detail, including ecological finance, environmental finance, social finance, experimental finance, neurofinance, and emotional finance. A comprehensive discussion of narcissism is presented where it is demonstrated that narcissistic behaviour is prevalent in the finance industry and that it led to the eruption of the global financial crisis.

Features comprehensive treatment of behavioural biases
Provides an outlook for behavioural finance
Includes guidelines for profiling financial planners and corporate treasurers

Features comprehensive treatment of behavioural biases Provides an outlook for behavioural finance Includes guidelines for profiling financial planners and corporate treasurers Includes supplementary material: sn.pub/extras

Autor*in

Imad A. Moosa

Themen in »The Financial Consequences of Behavioural Biases«

Investor bias Stock market Corporate finance Financial planning Trading strategies Overconfidence Prospect theory Loss aversion bias Disposition effect Rationality

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