Investor Behavior
The Psychology of Financial Planning and Investing
Published on 25. March 2014
Book
Hardback
640 pages
978-1-118-49298-7 (ISBN)
Description
Investor Behavior provides readers with a comprehensive understanding and the latest research in the area of behavioral finance and investor decision making. Blending contributions from noted academics and experienced practitioners, this 30-chapter book will provide investment professionals with insights on how to understand and manage client behavior; a framework for interpreting financial market activity; and an in-depth understanding of this important new field of investment research. The book should also be of interest to academics, investors, and students.
The book will cover the major principles of investor psychology, including heuristics, bounded rationality, regret theory, mental accounting, framing, prospect theory, and loss aversion. Specific sections of the book will delve into the role of personality traits, financial therapy, retirement planning, financial coaching, and emotions in investment decisions. Other topics covered include risk perception and tolerance, asset allocation decisions under inertia and inattention bias; evidenced based financial planning, motivation and satisfaction, behavioral investment management, and neurofinance. Contributions will delve into the behavioral underpinnings of various trading and investment topics including trader psychology, stock momentum, earnings surprises, and anomalies. The final chapters of the book examine new research on socially responsible investing, mutual funds, and real estate investing from a behavioral perspective. Empirical evidence and current literature about each type of investment issue are featured. Cited research studies are presented in a straightforward manner focusing on the comprehension of study findings, rather than on the details of mathematical frameworks.
Reviews / Votes
"Baker and Ricciardi have done an excellent job of soliciting articles that blend academic research with real-world applications that can be used by financial planners. Investor Behavior is an excellent book for anyone who wishes to detour from the beaten path of behavioral finance and to implement what has been learned about investor psychology to better understand traders and assist clients." -- Financial Analysts JournalMore details
Series
Edition
1. Auflage
Language
English
Place of publication
New York
United States
Target group
Professional and scholarly
Product notice
Unsewn / adhesive bound
Paper over boards
With dust jacket
Dimensions
Height: 260 mm
Width: 183 mm
Thickness: 39 mm
Weight
1382 gr
ISBN-13
978-1-118-49298-7 (9781118492987)
Schweitzer Classification
Other editions
Additional editions
H. Kent Baker | Victor Ricciardi
Investor Behavior
The Psychology of Financial Planning and Investing
E-Book
02/2014
Wiley
€90.99
Available for download
H. Kent Baker | Victor Ricciardi
Investor Behavior
The Psychology of Financial Planning and Investing
E-Book
01/2014
Wiley
€90.99
Available for download
Persons
H. KENT BAKER is University Professor of Finance at American University's Kogod School of Business in Washington, DC. As one of the most prolific finance academics, he has authored or edited 21 books and published more than 150 refereed articles. He has consulting and training experience with more than 100 organizations, serves on multiple editorial boards, and is the Past President of the Southern Finance Association. Professor Baker holds eight earned degrees including three doctorates as well as CFA and CMA designations.
VICTOR RICCIARDI specializes in current trends in behavioral finance. As Assistant Professor of Financial Management at Goucher College in Baltimore, Maryland, he has made important contributions to understanding the psychology of investing. Professor Ricciardi also serves as Coordinator of Behavioral and Experimental Research for the Social Science Research Network (SSRN). He edits several SSRN eJournals related to behavioral finance, financial history, behavioral economics, risk-taking behavior, and behavioral accounting.
Content
Acknowledgments xv
Part One - Foundations of Investor Behavior
Chapter 1 - Investor Behavior: An Overview 3
H. Kent Baker and Victor Ricciardi
Chapter 2 - Traditional and Behavioral Finance 25
Lucy F. Ackert
Chapter 3 - Behavioral Economics, Thinking Processes, Decision-Making, and Investment Behavior 43
Morris Altman
Part Two - Personal Finance Issues
Chapter 4 - Financial Literacy and Education 65
Michael S. Finke and Sandra J. Huston
Chapter 5 - Household Investment Decisions 83
Vicki L. Bogan
Chapter 6 - Personality Traits 99
Lucia Fung and Robert B. Durand
Chapter 7 - Demographic and Socioeconomic Factors of Investors 117
James Farrell
Chapter 8 - The Effect of Religion on Financial and Investing Decisions 135
Walid Mansour and Mouna Jlassi
Chapter 9 - Money and Happiness: Implications for Investor Behavior 153
Jing Jian Xiao
Chapter 10 - Motivation and Satisfaction 171
Lewis J. Altfest
Part Three - Financial Planning Concepts
Chapter 11 - Policy-Based Financial Planning: Decision Rules for a Changing World 191
Dave Yeske and Elissa Buie
Chapter 12 - Financial Counseling and Coaching 209
John E. Grable and Kristy L. Archuleta
Chapter 13 - Financial Therapy: De-Biasing and Client Behaviors 227
Joseph W. Goetz and Jerry E. Gale
Chapter 14 - Transpersonal Economics 245
Renée M. Snow
Chapter 15 - Advising the Behavioral Investor: Lessons from the Real World 265
Gregg S. Fisher
Chapter 16 - Retirement Planning: Contributions from the Field of Behavioral Finance and Economics 285
James A. Howard and Rassoul Yazdipour
Chapter 17 - Knowing Your Numbers: A Scorecard Approach to Improved Medical and Financial Outcomes 307
Talya Miron-Shatz and Stephanie Gati
Part Four - Investor Psychology
Chapter 18 - Risk Perception and Risk Tolerance 327
Victor Ricciardi and Douglas Rice
Chapter 19 - Emotions in the Financial Markets 347
Richard Fairchild
Chapter 20 - Human Psychology and Market Seasonality 365
Lisa A. Kramer
Chapter 21 - Neurofinance 381
Richard L. Peterson
Chapter 22 - Diversification and Asset Allocation Puzzles 403
Dimitris Georgarakos
Chapter 23 - Behavioral Portfolio Theory and Investment Management 421
Erick W. Rengifo, Rossen Trendafilov, and Emanuela Trifan
Chapter 24 - Post-Crisis Investor Behavior: Experience Matters 439
Joseph V. Rizzi
Part Five - Trading and Investing Psychology and Strategies
Chapter 25 - The Psychology of Trading and Investing 459
Julia Pitters and Thomas Oberlechner
Chapter 26 - The Surprising Real World of Traders' Psychology 477
Denise K. Shull, Ken Celiano, and Andrew Menaker
Chapter 27 - Trading and Investment Strategies in Behavioral Finance 495
John M. Longo
Part Six - Special Investment Topics
Chapter 28 - Ethical and Socially Responsible Investing 515
Julia M. Puaschunder
Chapter 29 - Mutual Funds and Individual Investors: Advertising and Behavioral Issues 533
John A. Haslem
Chapter 30 - Real Estate Investment Decision-Making in Behavioral Finance 555
Eli Beracha and Hilla Skiba
Answers to the Discussion Questions 573
Index 615