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Author: Loang, Ooi Kok
Publisher: IGI Global
ISBN:
Category : Business & Economics
Languages : en
Pages : 380
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Book Description
The psychological drivers of herding behavior and market overreaction shape current financial markets, often leading to price volatility and mispriced assets. Investors who are influenced by emotions may copy the actions of others, resulting in collective decision-making that can amplify market trends. This phenomenon is further influenced by cognitive biases, such as confirmation bias and overconfidence, which can cloud judgment and lead to irrational excitement or panic selling. Understanding these psychological mechanisms is essential for investors and market analysts alike, as it provides insights into the dynamics of market behavior and contributes to more informed investment strategies and risk management practices. Psychological Drivers of Herding and Market Overreaction explores the psychological factors that drive herding behavior and market overreaction in financial markets. It integrates key psychological theories with financial market analysis to explain why investors follow the crowd and how these collective behaviors impact market stability. This book covers topics such as collective intelligence, financial markets, and herding behavior, and is a useful resource for computer engineers, psychologists, marketers, business owners, economists, academicians, scientists, and researchers.
Author: Loang, Ooi Kok
Publisher: IGI Global
ISBN:
Category : Business & Economics
Languages : en
Pages : 380
Get Book Here
Book Description
The psychological drivers of herding behavior and market overreaction shape current financial markets, often leading to price volatility and mispriced assets. Investors who are influenced by emotions may copy the actions of others, resulting in collective decision-making that can amplify market trends. This phenomenon is further influenced by cognitive biases, such as confirmation bias and overconfidence, which can cloud judgment and lead to irrational excitement or panic selling. Understanding these psychological mechanisms is essential for investors and market analysts alike, as it provides insights into the dynamics of market behavior and contributes to more informed investment strategies and risk management practices. Psychological Drivers of Herding and Market Overreaction explores the psychological factors that drive herding behavior and market overreaction in financial markets. It integrates key psychological theories with financial market analysis to explain why investors follow the crowd and how these collective behaviors impact market stability. This book covers topics such as collective intelligence, financial markets, and herding behavior, and is a useful resource for computer engineers, psychologists, marketers, business owners, economists, academicians, scientists, and researchers.
Author: Rob Ranyard
Publisher: John Wiley & Sons
ISBN: 1118926390
Category : Business & Economics
Languages : en
Pages : 651
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Book Description
A comprehensive overview of contemporary economic psychology Economic Psychology presents an accessible overview of contemporary economic psychology. The science of economic mental life and behavior is increasingly relevant as people are expected to take more responsibility for their household and personal economic decisions. The text will, in addition to reviewing current knowledge on each topic presented, consider the practical and policy implications for supporting economic decision making. Economic Psychology examines the central aspects of adult decision making in everyday life and includes the theories of economic decision making based on risk, value and affect, and theories of intertemporal choice. The text reviews the nature and behavioral consequences of economic mental representations about such things as material possessions, money and the economy. The editor Robert Ranyard—a noted expert on economic psychology—presents a life-span developmental approach, from childhood to old age. He also reviews the important societal issues such as charitable giving and economic sustainability. This vital resource: Reviews the economic psychology in everyday life including financial behaviour such as saving and tax-paying and matters such as entrepreneurial activity Offers an introduction to the field and traces the emergence of the discipline, from Adam Smith to George Katona and Herbert Simon Includes information on societal issues such as charitable giving and pro-environmental behaviour Considers broader perspectives on economic psychology: life-span psychological development from childhood to old age Written for students of psychology, Economic Psychology reviews the most important information on contemporary economic psychology with a focus on individual and household economic decision making, ranging widely across financial matters such as borrowing and saving, and economic activities such as buying, trading, and working.
Author: Andrei Shleifer
Publisher: OUP Oxford
ISBN: 0191606898
Category : Business & Economics
Languages : en
Pages : 308
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Book Description
The efficient markets hypothesis has been the central proposition in finance for nearly thirty years. It states that securities prices in financial markets must equal fundamental values, either because all investors are rational or because arbitrage eliminates pricing anomalies. This book describes an alternative approach to the study of financial markets: behavioral finance. This approach starts with an observation that the assumptions of investor rationality and perfect arbitrage are overwhelmingly contradicted by both psychological and institutional evidence. In actual financial markets, less than fully rational investors trade against arbitrageurs whose resources are limited by risk aversion, short horizons, and agency problems. The book presents and empirically evaluates models of such inefficient markets. Behavioral finance models both explain the available financial data better than does the efficient markets hypothesis and generate new empirical predictions. These models can account for such anomalies as the superior performance of value stocks, the closed end fund puzzle, the high returns on stocks included in market indices, the persistence of stock price bubbles, and even the collapse of several well-known hedge funds in 1998. By summarizing and expanding the research in behavioral finance, the book builds a new theoretical and empirical foundation for the economic analysis of real-world markets.
Author: Sushil Bikhchandani
Publisher:
ISBN:
Category : Capital market
Languages : en
Pages : 38
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Book Description
Author: Doctor Lorenzo Fioramonti
Publisher: Zed Books Ltd.
ISBN: 1780322704
Category : Social Science
Languages : en
Pages : 281
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Book Description
Numbers dominate global politics and, as a result, our everyday lives. Credit ratings steer financial markets and can make or break the future of entire nations. GDP drives our economies. Stock market indices flood our media and national debates. Statistical calculations define how we deal with climate change, poverty and sustainability. But what is behind these numbers? In How Numbers Rule the World, Lorenzo Fioramonti reveals the hidden agendas underpinning the use of statistics and those who control them. Most worryingly, he shows how numbers have been used as a means to reinforce the grip of markets on our social and political life, curtailing public participation and rational debate. An innovative and timely exposé of the politics, power and contestation of numbers.
Author: H. Kent Baker
Publisher: John Wiley & Sons
ISBN: 1118492986
Category : Business & Economics
Languages : en
Pages : 645
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Book Description
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. 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.
Author: Stéphane Goutte
Publisher: Springer Nature
ISBN: 3030985423
Category : Business & Economics
Languages : en
Pages : 137
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Book Description
This book analyses the impact of the COVID-19 pandemic in different areas of Finance emphasizing the contagion effect in capital markets. The volume presents evidence-based case studies from the global financial crisis that followed after the onset of the pandemic in March 2020.
Author: Faxing, Liao
Publisher: IGI Global
ISBN:
Category : Business & Economics
Languages : en
Pages : 418
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Book Description
In the age of technological innovation and the rise of emerging markets, investment strategies are evolving to capitalize on new opportunities and navigate complex risks. As technologies like artificial intelligence (AI), blockchain, and renewable energy reshape industries, investors are looking for ways to use these advancements for long-term growth. At the same time, emerging markets offer potential for returns, but also present challenges, including political instability, currency fluctuations, and regulation uncertainties. Successful investment strategies require a blend of traditional financial understanding and an awareness of current technological and global market dynamics. Further exploration may help businesses and investors to take advantage of the transformative potential of these landscapes while mitigating risks and maximizing value. Investment Strategies in the Age of Technological Innovation and Emerging Markets explores the relationship between technological advancements, emerging market opportunities, and equity investment strategies. It offers a comprehensive analysis of their combined effects on the investment landscape. This book covers topics such as investor psychology, stock markets, and behavioral finance, and is a useful resource for economists, business owners, investors, psychologists, scientists, academicians, and researchers.
Author: Karl Erik W‹rneryd
Publisher: Edward Elgar Publishing
ISBN: 9781782543039
Category : Business & Economics
Languages : en
Pages : 360
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Book Description
'Stock-Market Psychology gives an excellent overview of the state-of-the-art literature on this subject in the fields of economics, psychology and finance. . . a comprehensive overview of the behavior of investors in the stock market. As such, this book is valuable for the classroom. . . Stock-Market Psychology provides researchers with numerous ideas for future research and readers with useful and fun tips without taking away our hopes of ever becoming rich from investing in stocks. What more is there to ask from a book?' - Joost M.E. Pennings, Journal of Economic Psychology 'George Goodman (Adam Smith) once wrote, "you can find out who you are by investing in the stock market, but it will be an expensive lesson". It is far smarter and cheaper to read Wärneryd's book instead. At a time when global stock markets are driven by emotions and passions, and are highly volatile, Chapter Six will tell you why, far better than a hundred analysts' reports.' - Shlomo Maital, TIM-Technion Institute of Management and the Samuel Neaman Institute for Advanced Studies in Science and Technology, Israel The rationale behind how people value and trade stocks is of unparalleled interest to governments, companies and other participants in stock markets. The book focuses on the way in which investors process information and form expectations about future gains. It argues that humans fall short of the perfect information processing required by theory, and that their expectations are based on more than just future company earnings.
Author: Wing-Keung Wong
Publisher: Mdpi AG
ISBN: 9783036530802
Category : Business & Economics
Languages : en
Pages : 232
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Book Description
The Efficient Market Hypothesis believes that it is impossible for an investor to outperform the market because all available information is already built into stock prices. However, some anomalies could persist in stock markets while some other anomalies could appear, disappear and re-appear again without any warning. A Special Issue on "Efficiency and Anomalies in Stock Markets" will be devoted to advancements in the theoretical development of market efficiency and anomaly in the Stock Market, as well as applications in Stock Market efficiency and anomalies.
