Description
Book SynopsisThe
Handbook of Behavioral Finance is a comprehensive, topical and concise source of cutting-edge research on recent developments in behavioral finance.
The Handbook is divided into three areas of interest. The first ?- Behavioral Biases ?- includes discussions on herding in the market, information processing and the disposition effect in investment decisions. In the second section ?- Behavior in the Investment Process ?- topics explored include the effects of higher transaction costs on traders? behavior, investor sentiment, overconfidence and active management, and behavior effects on forecasts. The final section ?- Global Behavior ?- looks at the effects of various aspects of behavioral finance in international markets including Malaysia, Finland, Australia and Brazil.
Consolidating a colossal amount of research into one volume, this Handbook will stimulate new interdisciplinary research for academics, build a body of knowledge about psychological influences on market behavior for finance students, and give practitioners a better understanding of psychological influences on the markets in order to improve investment decision making.
Trade Review‘The Handbook of Behavioral Finance
is a comprehensive source of cutting-edge research on recent developments in behavioral finance.’ -- Long Range Planning
‘As suits the jointly academic and practitioner audience, the technical level is low without being facile. (The Handbook
would be a suitable reference for a senior undergraduate or master’s level class in behavioral finance). Most chapters present simple econometric modelling of experimental, survey or revealed preference data. . . chapters are concise, coherent and clearly written.’ -- Susan Thorp, Journal of Pension Economics and Finance
‘This book does an excellent job of presenting empirical evidence as to the role of selected psychological attributes on key investment behaviors and it should be valuable to investment professionals as a handbook. Professor Bruce has selected readings that clearly show that investors are more than logic machines. They have evolved brains which makes them susceptible to context and culture. The book wisely avoids making generalizations about a new behavioral financial paradigm which at this time is only in the early stages of development.’ - Robert A. Olsen, California State University, Chico, US
‘The breadth and depth of Professor Bruce’s knowledge of behavioral finance and its implications for, and applicability to, all facets of investment decisions makes him as qualified as anyone I know to produce this Handbook. Those who absorb the insights and knowledge that this Handbook
offers will prosper. But without it, they will dull their competitive edge both as investors and as educators. I am actually jealous I did not produce this Handbook
myself!’ -- Arnold S. Wood, Martingale Asset Management, US
Table of ContentsContents: Preface Introduction Brian Bruce PART I: BEHAVIORAL BIASES 1. Framing Effects, Selective Information and Market Behavior: An Experimental Analysis Erich Kirchler, Boris Maciejovsky and Martin Weber 2. Information Overload and Information Presentation in Financial Decision Making Julie Agnew and Lisa Szykman 3. Revealing the Information Content of Investment Decisions Noriyuki Okuyama and Gavin Francis 4. The Disposition Effect and Individual Investor Decisions: The Roles of Regret and Counterfactual Alternatives Suzanne O’Curry Fogel and Thomas Berry 5. Overreaction of Exchange-Traded Funds During the Bubble of 1998–2002 Jeff Madura and Nivine Richie 6. Intentional Herding in Stock Markets: An Alternate Approach in an International Context Natividad Blasco, Pilar Corredor and Sandra Ferreruela 7. Psychic Distance in the Eight-year Crisis: An Empirical Study Lili Zhu and Jiawen Yang PART II: BEHAVIOR IN THE INVESTMENT PROCESS 8. The Effects of Higher Transaction Costs on Trader Behavior Ryan Garvey and Anthony Murphy 9. Homo Communitatis: A Rigorous Foundation for Behavioral Finance H. Joel Jeffrey 10. Does Mutual Fund Flow Reflect Investor Sentiment? Daniel C. Indro 11. The Impact of Motivational and Cognitive Factors on Optimistic Earnings Forecasts Anna M. Cianci and Satoris S. Culbertson 12. Overconfidence and Active Management Christoph Gort and Mei Wang 13. Availability Heuristic and Observed Bias in Growth Forecasts: Evidence from an Analysis of Multiple Business Cycles Byunghwan Lee, John O’Brien and K. Sivaramakrishnan 14. Weak and Strong Individual Forecasts: Additional Experimental Evidence Lucy F. Ackert, Bryan K. Church and Kirsten Ely 15. Behavioral Finance and Investment Advice Kremena Bachmann and Thorsten Hens PART III: GLOBAL BEHAVIOR 16. Measuring the Impact of Behavioral Traders in the Market for Closed-end Country Funds from 2002 to 2009 Hugh Kelley and Tom Evans 17. Holding on to the Losers: Finnish Evidence Mirjam Lehenkari and Jukka Perttunen 18. The Impact of Business and Consumer Sentiment on Stock Market Returns: Evidence from Brazil Pablo Calafiore, Gökçe Soydemir and Rahul Verma 19. The Information-Adjusted Noise Model: Theory and Evidence from the Australian Stock Market Sinclair Davidson and Vikash Ramiah 20. Ambiguity Aversion and Illusion of Control in an Emerging Market: Are Individuals Subject to Behavioral Biases? Benjamin Miranda Tabak and Dimas Mateus Fazio 21. Behavioral Finance in Malaysia Ming-Ming Lai, Lee-Lee Chong and Siow-Hooi Tan Index
