Investor Behavior - The Psychology of Financial Planning and Investing

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.

Sommario

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

Info autore

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.

Riassunto

WINNER, Business: Personal Finance/Investing, 2015 USA Best Book Awards FINALIST, Business: Reference, 2015 USA Best Book Awards Investor Behavior provides readers with a comprehensive understanding and the latest research in the area of behavioral finance and investor decision making.

Relazione

"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 Journal

Dettagli sul prodotto

• Autori: Baker, H Ken Baker, H Kent Baker, H. Kent Baker, H. Kent (American University) Ricciardi Baker, H. Kent Ricciardi Baker, Hk Baker, Victor Ricciardi, Victor Baker Ricciardi, Ricciardi Victor
• Con la collaborazione di: H. Kent Baker (Editore), Victor Ricciardi (Editore)
• Editore: Wiley, John and Sons Ltd
• Lingue: Inglese
• Formato: Copertina rigida
• Pubblicazione: 25.03.2014
• EAN: 9781118492987
• ISBN: 978-1-118-49298-7
• Pagine: 640
• Serie: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; Wiley Finance Editions
• Categorie: Scienze sociali, diritto, economia > Economia > Economia aziendale; Finanzwesen, Finance & Investments, Finanz- u. Anlagewesen, Spezialthemen Finanz- u. Anlagewesen, Finance & Investments Special Topics