Download or read book Self Attribution Bias in Consumer Financial Decision Making written by Arvid O. I. Hoffmann and published by . This book was released on 2015 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Self-attribution bias is a long-standing concept in psychology research and refers to individuals' tendency to attribute successes to personal skills and failures to factors beyond their control. Recently, this bias is also being studied in household finance research and is considered to underlie and reinforce investor overconfidence. To date, however, the existence of self-attribution bias amongst individual investors is not directly empirically tested. That is, it remains unclear whether good (vs. bad) returns indeed make investors believe more (vs. less) strongly that skills drive their performance. Using a unique combination of survey data and matching trading records of a sample of clients from a large discount brokerage firm, we find that: (1) the higher the returns in a previous period are, the more investors agree with a statement claiming that their recent performance accurately reflects their investment skills (and vice versa); and (2) while individual returns relate to more agreement, market returns have no such effect.

Download or read book The Financial Consequences of Behavioural Biases written by Imad A. Moosa and published by Springer. This book was released on 2017-10-25 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a concise analysis of behavioural biases and their implications for financial decision making. The book is written in the normative tradition, arguing strongly for the superiority of behavioural finance with respect to explaining observed phenomena in financial markets. It offers some unique features, including a discussion of the issue of conspiracy theory and how behavioural biases lead to belief in conspiracy theories. Lingering belief in the principles of neoclassical finance is attributed in part to the doctrine of publish or perish, which dominates contemporary academia. The offshoots of behavioural finance are discussed in detail, including ecological finance, environmental finance, social finance, experimental finance, neurofinance, and emotional finance. A comprehensive discussion of narcissism is presented where it is demonstrated that narcissistic behaviour is prevalent in the finance industry and that it led to the eruption of the global financial crisis.

Download or read book Understanding Behavioral BIA written by Daniel C. Krawczyk and published by Business Expert Press. This book was released on 2019-11-13 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book describes the biases most relevant to investing, include background on how biases develop, and offer practical strategies to help you to improve your performance. The authors offer a guide to categorizing biases based on cutting-edge brain science, which will enable readers to implement best practices that guard against whole sets of biases. Emphasis is placed on the practical implications of financial decision-making and provides a scientific basis for adjusting investing practices, to avoid common cognitive traps.

Download or read book Understanding Consumer Financial Behavior written by W. Fred van Raaij and published by Springer. This book was released on 2016-07-15 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: Government policies, marketing campaigns of banks, insurance companies, and other financial institutions, and consumers' protective actions all depend on assumptions about consumer financial behavior. Unfortunately, many consumers have no or little knowledge of budgeting, financial products, and financial planning. It is therefore important that organizations and market authorities know why consumers spend, borrow, insure, invest, and save for their retirement - or why they do not. Understanding Consumer Financial Behavior provides a systemic economic and behavioral approach to the way people handle their finances. It discusses the different types of financial behaviors consumers may engage in and explores the psychological explanations for their behavior and choices. This exciting new book is essential reading for scholars of marketing, finance, and management; financial professionals; and consumer policy makers.

Download or read book Behavioral Finance written by H. Kent Baker and published by Oxford University Press. This book was released on 2019-02-01 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: People tend to be penny wise and pound foolish and cry over spilt milk, even though we are taught to do neither. Focusing on the present at the expense of the future and basing decisions on lost value are two mistakes common to decision-making that are particularly costly in the world of finance. Behavioral Finance: What Everyone Needs to KnowR provides an overview of common shortcuts and mistakes people make in managing their finances. It covers the common cognitive biases or errors that occur when people are collecting, processing, and interpreting information. These include emotional biases and the influence of social factors, from culture to the behavior of one's peers. These effects vary during one's life, reflecting differences in due to age, experience, and gender. Among the questions to be addressed are: How did the financial crisis of 2007-2008 spur understanding human behavior? What are market anomalies and how do they relate to behavioral biases? What role does overconfidence play in financial decision- making? And how does getting older affect risk tolerance?

Download or read book Handbook of Research on Behavioral Finance and Investment Strategies Decision Making in the Financial Industry written by Copur, Zeynep and published by IGI Global. This book was released on 2015-01-31 with total page 559 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an ever-changing economy, market specialists strive to find new ways to evaluate the risks and potential reward of economic ventures by assessing the importance of human reaction during the economic planning process. The Handbook of Research on Behavioral Finance and Investment Strategies: Decision Making in the Financial Industry presents an interdisciplinary, comparative, and competitive analysis of the thought processes and planning necessary for individual and corporate economic management. This publication is an essential reference source for professionals, practitioners, and managers working in the field of finance, as well as researchers and academicians interested in an interdisciplinary approach to combine financial management, sociology, and psychology.

Download or read book Focal Versus Background Goals in Consumer Financial Decision Making written by Jaakko Aspara and published by . This book was released on 2015 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: According to standard (rational) models of (financial) decision-making, consumers should generally have a single strong, normative focal goal when making financial decisions like selecting which stocks to invest in: to maximize risk-adjusted financial returns. Nevertheless, consumers' financial decisions may also be influenced by other goals that operate in the background, such as the desire to express themselves. The present research examines the interplay between focal and background goals in consumer financial decision-making and identifies several conditions that lead individuals to trade off financial returns for the satisfaction of background goals. Three experiments show that individuals who have (1) been subtly primed with self-expressive background goals, or (2) experienced progress towards the focal goal of financial returns, are willing to accept lower financial returns for the opportunity to invest in stocks that allow for increased self-expression. Further, while subtly primed background goals exert a non-normative influence on investment decisions, (3) explicit cues about an investment's background goal-instrumentality create a backlash effect, and decrease individuals' willingness to trade off financial returns.

Download or read book Finance for Normal People written by Meir Statman and published by Oxford University Press. This book was released on 2017 with total page 489 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finance for Normal People teaches behavioral finance to people like you and me - normal people, neither rational nor irrational. We are consumers, savers, investors, and managers - corporate managers, money managers, financial advisers, and all other financial professionals. The book guides us to know our wants-including hope for riches, protection from poverty, caring for family, sincere social responsibility and high social status. It teaches financial facts and human behavior, including making cognitive and emotional shortcuts and avoiding cognitive and emotional errors such as overconfidence, hindsight, exaggerated fear, and unrealistic hope. And it guides us to banish ignorance, gain knowledge, and increase the ratio of smart to foolish behavior on our way to what we want. These lessons of behavioral finance draw on what we know about us-normal people-including our wants, cognition, and emotions. And they draw on the roles of these factors in saving and spending, portfolio construction, returns we can expect from our investments, and whether we can hope to beat the market. Meir Statman, a founder of behavioral finance, draws on his extensive research and the research of many others to build a unified structure of behavioral finance. Its foundation blocks include normal behavior, behavioral portfolio theory, behavioral life-cycle theory, behavioral asset pricing theory, and behavioral market efficiency.

Download or read book The Challenge of Chance written by Klaas Landsman and published by Springer. This book was released on 2016-06-09 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents a multidisciplinary perspective on chance, with contributions from distinguished researchers in the areas of biology, cognitive neuroscience, economics, genetics, general history, law, linguistics, logic, mathematical physics, statistics, theology and philosophy. The individual chapters are bound together by a general introduction followed by an opening chapter that surveys 2500 years of linguistic, philosophical, and scientific reflections on chance, coincidence, fortune, randomness, luck and related concepts. A main conclusion that can be drawn is that, even after all this time, we still cannot be sure whether chance is a truly fundamental and irreducible phenomenon, in that certain events are simply uncaused and could have been otherwise, or whether it is always simply a reflection of our ignorance. Other challenges that emerge from this book include a better understanding of the contextuality and perspectival character of chance (including its scale-dependence), and the curious fact that, throughout history (including contemporary science), chance has been used both as an explanation and as a hallmark of the absence of explanation. As such, this book challenges the reader to think about chance in a new way and to come to grips with this endlessly fascinating phenomenon.

Download or read book Proceedings of the International Conference on Emerging Trends in Business Management ICETBM 2023 written by Sudarsan Jayasingh and published by Springer Nature. This book was released on 2023-05-09 with total page 438 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is an open access book. The International Conference on Emerging Trends in Business & Management (ICETBM2023) aims to bring together leading academicians, practitioners, researchers, and students to exchange their views, knowledge, experience and insights on the emerging trends in business and management. The conference theme for year 2023 is “Business Intelligence and Analytics as Drivers for Digital Transformation”. Organizations are adopting a data-driven approach to identify new business opportunities, serve customers better, increase sales, improve the efficiency of operations and more. The amount of data generated, captured, copied, and consumed worldwide is growing rapidly due to increased use of the internet, mobile phone and social media. In today’s modern corporate environment, business intelligence and analytics have emerged as indispensable tools for improving decision-making, facilitating the execution of major initiatives, and guiding the overall company strategies. Business Intelligence and Analytics enables organizations to develop new innovative business models and approaches in the era of digital transformation. The role of analytics in solving business problems has increased manifold in recent years. Researchers, academics, and practitioners are paying more attention because of the increasing benefits achieved using business analytics. The conference will be held in SSN School of Management, Sri Sivasubramaniya Nadar College of Engineering, Kalavakkam, Chennai, India on 24th & 25th February 2023 and will be a hybrid event. This conference will offer invited talks by experts and paper presentations from leading academicians and industry speakers to share new ideas, research insights, recent innovations, trends, and challenges faced in the field of Business and Management.

Download or read book Sell More with Science written by David Hoffeld and published by Penguin. This book was released on 2022-03-22 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: The groundbreaking system scientifically proven to increase your performance and launch you to unprecedented levels of success. Today, in sales, business, and life, you need every advantage you can get. In Sell More with Science, David Hoffeld, the world’s leading expert on applying science to selling, shares his revolutionary three-part system to experience surefire success at home, at work, and out in the world. Here, Hoffeld utilizes research studies from social psychology, neuroscience, and behavioral economics to reveal actionable insights you can use to grow your sales, achieve more, and stay ahead of the competition. You’ll discover: • two evidence-based mindsets that will help you earn more sales • seven strategies that will boost your chances of reaching any goal • powerful principles that will enhance your ability to guide potential clients into positive buying decisions • ways to win day-to-day interactions—in business and beyond • how to reframe any idea or situation • what it means to sell with integrity • a science-backed formula you can follow to create positive career change • and much more Filled with practical insights and exercises, Sell More with Science is a game-changing guide for anyone who wants to take their influence, sales, or career to new heights.

Download or read book Investor Behavior written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2014-02-10 with total page 645 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Intelligent Computing written by Kohei Arai and published by Springer Nature. This book was released on 2023-10-02 with total page 1492 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a collection of insightful and unique state-of the-art papers presented at the Computing Conference which took place in London on June 22–23, 2023. A total of 539 papers were received out of which 193 were selected for presenting after double-blind peer-review. The book covers a wide range of scientific topics including IoT, Artificial Intelligence, Computing, Data Science, Networking, Data security and Privacy, etc. The conference was successful in reaping the advantages of both online and offline modes. The goal of this conference is to give a platform to researchers with fundamental contributions and to be a premier venue for academic and industry practitioners to share new ideas and development experiences. We hope that readers find this book interesting and valuable. We also expect that the conference and its publications will be a trigger for further related research and technology improvements in this important subject.

Download or read book Consumer Financial Behavior written by W. Fred Van Raaij and published by Now Publishers. This book was released on 2014-12-01 with total page 134 pages. Available in PDF, EPUB and Kindle. Book excerpt: Consumer financial behavior is a domain between micro-economics, behavioral finance, and marketing. It is based on insights and behavioral theories from cognitive, economic, and social psychology (biases, heuristics, social influences), in the context of and sometimes in conflict with micro-economic theories of consumers, investors, and markets. Behavioral finance has a descriptive approach, how people make financial decisions. Not always rational, but often in a systematic irrational way. Consumer financial behavior is also a basis and starting point for the marketing management of financial products and services, as well as for consumer education and protection policy. This monograph is on the determinants/drivers and consequences of spending, saving, borrowing, insuring, and investing. Ultimately, this monograph is on the financial requirements for financial inclusion, and participation in present society with its myriad of products and services, experiences, social media, information (overload), and the pursuit of meaning, satisfaction, happiness, and wellbeing.

Download or read book Handbook of Consumer Finance Research written by Jing J. Xiao and published by Springer Science & Business Media. This book was released on 2008-01-03 with total page 423 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook surveys the social aspects of consumer behavior, offering latest data and original research on current consumer needs as well as identifying emerging areas of research. This accessible volume (which can be read without advanced training in the field) starts with current concepts of risk tolerance, consumer socialization, and financial well-being, and moves on to salient data on specific settings and populations such as high school students and the older consumer.

Download or read book The Psychology of Interpersonal Relations written by Fritz Heider and published by Psychology Press. This book was released on 1982 with total page 340 pages. Available in PDF, EPUB and Kindle. Book excerpt: First Published in 1982. Routledge is an imprint of Taylor & Francis, an informa company.

Download or read book Decision Making of Investors written by Alexander Stimpfle and published by . This book was released on 2013-08 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2011 in the subject Economics - Finance, grade: 1,67, IE Business School, Madrid, language: English, abstract: In 2002, Daniel Kahneman and Vernon L. Smith received the Nobel Prize in economics for their work in decision-making and prospect theory. This was a significant event in the development of behavioral finance and highlighted its crucial role in advancing the understanding of dynamics and behavior in financial decisions for the financial community. Behavioral finance has continuously contributed with unorthodox and non-traditional approaches towards a better comprehension of markets and especially of its agents. The sentiment that market efficiency is an insufficient and somewhat unrealistic concept has been present for a long time. To improve the explanatory value of the concept, the structuring of observed deviations and subsequent analysis of its applications are necessary. The present empirical study contributes to this effort by examining some of the main hypothesized biases and behavioral patterns through practical application. For this objective, a small-scale sample has been subject to a survey on decision-making, in which central conceptual biases are tested empirically. The results may serve as additional insight into behavioral patterns and confirm or challenge widely used concepts of biases in financial decision-making.