This paper discusses whether psychological biases (overconfidence and mood), and social intelligence (in the form of self-monitoring) influence individual investors' decision making and their trading behaviour (trading frequency, volume and performance). Indeed, the literature review reveals...

Money illusion in economic theory has been an assumption rejected by academic economists for quite some time. However, with the gradual diffusion of behavioural economics based on experimental research this has changed. Now, it has become a respected fact to accept money illusion as a stylized...

В статье представлены основы теории поведенческих финансов, главной из которых является теория перспектив Д. Канемана и А. Тверски, определены предпосылки ее...

Purpose – The purpose of this paper is to introduce the special issue of Review of Behavioural Finance entitled “Behavioural finance: the role of psychological factors in financial decisions”. Design/methodology/approach – The authors present a brief outline of the origins of behavioural...

In the last years, mainly in the period of the financial crisis, a raising interest in behavioural finance could be observed. It has been pointed out that behavioural inclinations strongly influence the process of decision-making at capital market. The behavioural factors are understood here as...

The following paper is a theoretical introduction of the misinformation effect to behavioural finance. The misinformation effect causes a memory report regarding an event or particular knowledge to become contaminated with misleading information from another source. The paper aims to describe...

Artificial stock markets are built with diffuse priors in mind regarding trading strategies and price formation mechanisms. Diffuse priors are a natural consequence of the unknown relation between the various elements that drive market dynamics and the large variety of market organizations,...

In this study we investigate the return-implied volatility relationship in the French market by considering the behavioural biases of representativeness, extrapolation and affect. We find a strong evidence of negative and asymmetric return-implied volatility relationship at daily frequency,...

This study investigates the perceptions of estate agents regarding the decision making behaviour of property investors in Kenya using behavioural finance theories. The study uses a survey questionnaire to collect data targeting all the 155 real estate agents within the Nairobi district who are...

The massive accumulation of foreign reserves by China has challenged the conventional thinking about prudent reserve management. This paper develops a behavioural model of optimal decision making under uncertainty to explain the observed Chinese reserve policy. Departing from the conventional...