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Around the globe, the gradual move from defined benefit pensions to defined contribution pensions has increased the need for individual retirement planning. Examples of this include U.S. savings rates at historic lows, poor retirement prospects for citizens in developed countries, and the...
Persistent link: https://www.econbiz.de/10012954549
The future of behavioral finance necessitates that the research areas of behavioral corporate finance and investor psychology develop richer models of financial decision-making behavior. Behavioral corporate finance requires expanding the focus from chief executive officer characteristics to...
Persistent link: https://www.econbiz.de/10012954399
Although the efficient market hypothesis (EMH) is the leading theory describing the behavior of financial markets, researchers have increasingly questioned its efficacy since the 1980s because of its inconsistencies with empirical evidence. This challenge to EMH has resulted in the development...
Persistent link: https://www.econbiz.de/10012954413
The role of financial decision maker in a household has evolved over time. Decades ago, women held traditional roles of caregiver, housekeeper, and wife. Today, more women are pursuing higher education and female professionals and entrepreneurs are making great strides in business. Women are...
Persistent link: https://www.econbiz.de/10012954830
of behavioral bias that affect individual investors, especially retail traders who frequently churn their portfolios. The …
Persistent link: https://www.econbiz.de/10012954895
A large body of behavioral finance literature focuses on the behavioral biases of individual investors in their trading choices. The research shows that sophistication is related to the level at which these behavioral biases influence investors' trading choices. This chapter reviews the...
Persistent link: https://www.econbiz.de/10012955102
overconfidence, herding, group polarization, group-think effect, representativeness bias, familiarity issues, grandiosity, excitement … psychology, including the impact of a severe financial downturn, anchoring effect, recency bias, worry, loss averse behavior …, status quo bias, and trust. The aftermath of the financial crisis might have negative long-term effects on investor …
Persistent link: https://www.econbiz.de/10012955145
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
Persistent link: https://www.econbiz.de/10013024183
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...
Persistent link: https://www.econbiz.de/10012985026
The topic of risk incorporates a variety of definitions within different fields such as psychology, sociology, finance, and engineering. In academic finance, the analysis of risk has two major perspectives known as standard (traditional) finance and behavioral finance. The central focus of...
Persistent link: https://www.econbiz.de/10013137271