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© 2017

The Financial Consequences of Behavioural Biases

An Analysis of Bias in Corporate Finance and Financial Planning

  • Features comprehensive treatment of behavioural biases

  • Provides an outlook for behavioural finance

  • Includes guidelines for profiling financial planners and corporate treasurers

Book

Table of contents

  1. Front Matter
    Pages i-xv
  2. Imad A. Moosa, Vikash Ramiah
    Pages 1-25
  3. Imad A. Moosa, Vikash Ramiah
    Pages 27-44
  4. Imad A. Moosa, Vikash Ramiah
    Pages 45-69
  5. Imad A. Moosa, Vikash Ramiah
    Pages 93-124
  6. Imad A. Moosa, Vikash Ramiah
    Pages 125-150
  7. Imad A. Moosa, Vikash Ramiah
    Pages 151-162
  8. Back Matter
    Pages 163-174

About this book

Introduction

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.

Keywords

Investor bias Stock market Corporate finance Financial planning Trading strategies Overconfidence Prospect theory Loss aversion bias Disposition effect Rationality

Authors and affiliations

  1. 1.School of Economics, Finance and MarketingRMITMelbourneAustralia
  2. 2.School of CommerceUNISAAdelaideAustralia

About the authors

Imad A. Moosa is Professor of Finance at RMIT University, Australia. Before coming to academia, he worked in investment banking for a period of ten years. He has published extensively in both economics and finance.

Vikash Ramiah is Associate Professor of Finance at the University of South Australia. He has published extensively in behavioural and environmental finance, and he is a research fellow for the Institute of Global Business and Society, TH Köln, and Tianjin Academy of Environmental Sciences.

Bibliographic information

  • Book Title The Financial Consequences of Behavioural Biases
  • Book Subtitle An Analysis of Bias in Corporate Finance and Financial Planning
  • Authors Imad A. Moosa
    Vikash Ramiah
  • DOI https://doi.org/10.1007/978-3-319-69389-7
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2017
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance Economics and Finance (R0)
  • Hardcover ISBN 978-3-319-69388-0
  • Softcover ISBN 978-3-319-88769-2
  • eBook ISBN 978-3-319-69389-7
  • Edition Number 1
  • Number of Pages XV, 174
  • Number of Illustrations 12 b/w illustrations, 0 illustrations in colour
  • Topics Behavioral Finance
  • Buy this book on publisher's site