By H. Kent Baker and Victor Ricciardi
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 covers 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.
- WINNER, Business: Personal Finance/Investing, 2015 USA Best Book Awards
- FINALIST, Business: Reference, 2015 USA Best Book Awards
H. Kent Baker
Professor Baker teaches finance and served as Chair of the Department of Finance and Real Estate for 11 years and headed the Finance Center of Excellence for 8 years. Professor. Baker has received many teaching, research, and service awards including University Scholar/Teacher of the Year at American University. He also has extensive industry experience and has provided consulting and training services to more than 100 organizations.