Behavioral finance

Author: Chen Yehua
Publisher:
Publish Date: 2006-06-01
Features: This book explains the theories of behavioral finance from the perspective of research paradigms and theoretical frameworks, using easy-to-understand language. It establishes early investment theories, modern classic investment theories, and behavioral finance within a unified framework, with psychology as the main thread throughout, thereby revealing the similarities and differences between modern classic investment theories and behavioral finance. The book strives to explain the theories of behavioral finance in an accessible manner, providing scholars with a readable reference. Previous behavioral finance works generally limited the psychological content to explaining and describing investor irrational behavior with psychological terms, lacking a clear definition of the levels and relationships of these psychological phenomena. This book systematically and meticulously organizes and introduces the content related to behavioral finance research in branches of psychology such as cognitive psychology and social psychology, supplemented with case studies in the appendix. This approach, on the one hand, helps readers avoid confusion due to a lack of knowledge about psychological terms in behavioral finance theories; on the other hand, it allows readers to self-diagnose where they might be making mistakes in the stages of psychological processes while reading this part. For content already extensively detailed in other similar books, this book made choices regarding the level of detail in the writing process, adopting the form of literature reviews for some sections. This approach not only avoids repetition but also makes the overall structure of the book clearer, while the literature reviews also provide a foundation for further research.