This chapter provides a critical review of behavioral economic approaches to decision-making with a focus on the thinking processes of investors. It discusses the bounded rationality approach to decision-making as compared to the errors and biases approach for better understanding...

The purpose of this chapter is to compare and contrast traditional and behavioral finance. In traditional finance, which has been the dominant paradigm for several decades, investors make rational choices leading to maximizing expected utility. The fundamental issues of traditional finance are...

Understanding fundamental human tendencies can help financial planners and advisers recognize behaviors that may interfere with clients achieving their long-term goals. The authors describe several well-established behavioral biases and suggest how to overcome them

This is a PDF file of ‘Emerging Research and Policy Issues in Behavioral Finance' slides from a presentation at the Seventh Annual Meeting of the Academy of Behavioral Finance & Economics, September 16-18, 2015, Drexel University Philadelphia, Pennsylvania.This special session provided...

This panel discussion on behavioral finance took place on November 19, 2016 during the annual meeting of the Southern Finance Association held at Sandestin, Florida. The panel provides an overview of behavioral finance and discusses different types of behavioral biases; how they influence...

“Financial Behavior: An Overview” is the introduction chapter for the book Financial Behavior: Players, Services, Products, and Markets edited by H. Kent Baker, Greg Filbeck, and Victor Ricciardi. The book provides a synthesis of the theoretical and empirical literature on the financial...

A report issued by the U.S. General Accounting Office (GAO) in 2003 identified industry specialization as a key driver of consolidation among audit firms and highlighted the extreme levels of auditor concentration in some industries. Like the GAO, we view auditor concentration as a measure of...

“Investor Behavior: An Overview” is the introduction chapter for the book Investor Behavior: The Psychology of Financial Planning and Investing edited by H. Kent Baker and Victor Ricciardi that presents a historical perspective of investor psychology and theory. The field of investor...

This chapter provides an overview of the research literature and the important issues regarding risk perception and risk tolerance. The academic literature reveals that various disciplines provide an assortment of perspectives in terms of how to define, describe, and analyze risk. The behavioral...

lsquo;Why discuss accounting in Socio-Economic Review?' lsquo;Because accounting constructs socio-economic reality.' lsquo;How?!' lsquo;Theoretically speaking, there should be many ways of doing ldquo;account-ingrdquo; - an act of explaining business realities to multiple stakeholders of...