Behavioral finance: Psychology decision-making and markets PDF builds upon principles of finance, connecting content to psychological principles of behavioral finance, including heuristics and biases, overconfidence, emotion and social forces. Readers learn how human behavior influences the decisions of individual investors and professional finance practitioners, markets, and managers.
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Discover a structured, applied approach to behavioral finance with Ackert/Deaves’ Behavioral finance: Psychology decision-making and markets. This comprehensive text links finance theory and practice to human behavior with applications in every chapter.
Behavioral finance Psychology decision-making and markets PDF builds upon principles of finance, connecting content to psychological principles of behavioral finance, including heuristics and biases, overconfidence, emotion and social forces. Readers learn how human behavior influences the decisions of individual investors and professional finance practitioners, markets, and managers. The book clearly explains what behavioral finance indicates about observed market outcomes as well as how psychological biases potentially impact the behavior of managers. Readers see, first-hand, the implications of behavioral finance on retirement, pensions, education, debiasing, and client management. This book spends a significant amount of time examining how practitioners today can use behavioral finance to further their success.
Table of contents- Behavioral finance Psychology decision-making and markets PDF
PART I CONVENTIONAL FINANCE, PROSPECT THEORY, AND MARKET EFFICIENCY 1
CHAPTER 1 Foundations of Finance I: Expected Utility Theory 3
CHAPTER Foundations of Finance II: Asset Pricing, Market Efficiency, and Agency Relationships
CHAPTER 3 Prospect Theory, Framing, and Mental Accounting 37
CHAPTER 4 Challenges to Market Efficiency 60
PART II BEHAVIORAL SCIENCE FOUNDATIONS 81
CHAPTER 5 Heuristics and Biases 83
CHAPTER 6 Overconfidence 106
CHAPTER 7 Emotional Foundations 120
PART III INVESTOR BEHAVIOR 135
CHAPTER 8 Implications of Heuristics and Biases for Financial Decision-Making 137
CHAPTER 9 Implications of Overconfidence for Financial Decision-Making 151
CHAPTER 10 Individual Investors and the Force of Emotion 168
PART IV SOCIAL FORCES 183
CHAPTER 11 Social Forces: Selfishness or Altruism? 185
CHAPTER 12 Social Forces at Work: The Collapse of an American Corporation 202
PART V MARKET OUTCOMES 217
CHAPTER 13 Behavioral Explanations for Anomalies 219
CHAPTER 14 Do Behavioral Factors Explain Stock Market Puzzles? 237
PART VI CORPORATE FINANCE 263
CHAPTER 15 Rational Managers and Irrational Investors 265
CHAPTER 16 Behavioral Corporate Finance and Managerial Decision-Making 279
PART VII RETIREMENT, PENSIONS, EDUCATION, DEBIASING, AND CLIENT MANAGEMENT
CHAPTER 17 Understanding Retirement Saving Behavior and Improving DC Pensions 295
CHAPTER 18 Debiasing, Education, and Client Management 319
PART VIII MONEY MANAGEMENT 333
CHAPTER 19 Behavioral Investing 335
CHAPTER 20 Neurofinance and the Trader’s Brain 351
About the author
Lucy F. Ackert is Professor of Finance in the Michael J. Coles College of Business at Kennesaw State University and Visiting Scholar at the Federal Reserve Bank of Atlanta. Dr. Ackert holds a Ph.D. in financial economics from Emory University. Her research interests include individual’s use of information and financial market reaction to information. Dr. Ackert has published numerous articles in refereed journals including the American Economic Review, Journal of Accounting Research, and Journal of Finance.
Richard Deaves earned his Ph.D. from the University of Toronto and currently teaches at the DeGroote School of Business, McMaster University in Hamilton, Canada. In addition to McMaster, Dr. Deaves has been a visiting professor at the University of Toronto, Concordia University, and Rollins College. He has taught a variety of courses, including Behavioral Finance, Security Analysis, Portfolio Management, Derivatives and Applied Investment Management.