Financial Behavior

Players, Services, Products, and Markets

Edited by H. Kent Baker, Greg Filbeck, and Victor Ricciardi

Financial Markets and Investments

Distinctive focus on the who and the what of finance gives insight into concepts and applications.
Reflects the latest trends and research in its focus on the behavior of major players, financial services, investment products, and markets.
Provides easy to understand overviews of key concepts and actors and will be valuable for a wide array of readers with different backgrounds.

Financial Behavior

Players, Services, Products, and Markets

Edited by H. Kent Baker, Greg Filbeck, and Victor Ricciardi

Financial Markets and Investments

Description

Financial Behavior: Players, Services, Products, and Markets provides a synthesis of the theoretical and empirical literature on the financial behavior of major stakeholders, financial services, investment products, and financial markets. The book offers a different way of looking at financial and emotional well-being and processing beliefs, emotions, and behaviors related to money. The book provides important insights about cognitive and emotional biases that influence various financial decision-makers, services, products, and markets. With diverse concepts and topics, the book brings together noted scholars and practitioners so readers can gain an in-depth understanding about this topic from experts from around the world.

In today's financial setting, the discipline of behavioral finance is an ever-changing area that continues to evolve at a rapid pace. This book takes readers through the core topics and issues as well as the latest trends, cutting-edge research developments, and real-world situations. Additionally, discussion of research on various cognitive and emotional issues is covered throughout the book. Thus, this volume covers a breadth of content from theoretical to practical, while attempting to offer a useful balance of detailed and user-friendly coverage. Those interested in a broad survey will benefit as will those searching for more in-depth presentations of specific areas within this field of study. As the seventh book in the Financial Markets and Investment Series, Financial Behavior: Players, Services, Products, and Markets offers a fresh looks at the fascinating area of financial behavior.

Financial Behavior

Players, Services, Products, and Markets

Edited by H. Kent Baker, Greg Filbeck, and Victor Ricciardi

Financial Markets and Investments

Contents
List of Figures
List of Tables
About the Editors
About the Contributors
Abbreviations
Part One FINANCIAL BEHAVIOR AND PSYCHOLOGY
1. Financial Behavior: An Overview
H. Kent Baker, Greg Filbeck, and Victor Ricciardi
2. The Financial Psychology of Players, Services, and Products
Victor Ricciardi
Part Two THE FINANCIAL BEHAVIOR OF MAJOR PLAYERS
3. Individual Investors
Henrik Cronqvist and Danling Jiang
4. Institutional Investors
Alexandre Skiba and Hilla Skiba
5. Corporate Executives, Directors, and Boards
John R. Nofsinger and Pattanaporn Chatjuthamard
6. Financial Planners and Advisors
Benjamin F. Cummings
7. Financial Analysts
Susan M. Young
8. Portfolio Managers
Erik Devos, Andrew C. Spieler, and Joseph M. Tenaglia
9. Financial Psychopaths
Deborah W. Gregory
Part Three FINANCIAL AND INVESTOR PSYCHOLOGY OF SPECIFIC PLAYERS
10. The Psychology of High Net Worth Individuals
Rebecca Li-Huang
11. The Psychology of Traders
Duccio Martelli
12. A Closer Look at Frequent Trader
Michal Strahivevitz
13. The Psychology of Women Investors
Marguerita M. Cheng, and Sameer S. Somal
14. The Financial Psychology of Millennials
April Rudin and Catherine McBreen
Part Four THE PSYCHOLOGY OF FINANCIAL SERVICES
15. Psychological Aspect of Financial Planning
Dave Yeske and Elissa Buie
16. Financial Advisory Services
Jeroen Nieboer, Paul Dolan, and Ivo Vlaev
17. Insurance and Risk Management
James M. Moten Jr. and C. W. Copeland
18. Psychological Factors in Estate Planning
John Guerin and L. Paul Hood
19. Individual Biases in Retirement Planning and Wealth Management
James E. Brewer Jr., and Charles Self III
Part Five THE BEHAVIORAL ASPECTS OF INVESTMENT PRODUCTS AND MARKETS
20. Traditional Asset Allocation Securities: Stocks, Bonds, Real Estate, and Cash
Christopher Milliken, Ehsan Nikbakht, and Andrew Spieler
21. Behavioral Aspects of Mutual Funds, Exchange-Traded Funds, Hedge Funds, and
Pension Funds
Nathan Mauck
22. Current Trends in Successful International Mergers and Acquisitions
Nancy Hubbard
23. Art and Collectibles Management
Peter J. May
Part Six MARKET EFFICIENCY ISSUES
24. Behavioral Finance Market Hypothesis
Alex Plastun
25. Stock Market Anomalies
Steve Fan and Linda Yu
26. The Psychology of Speculation in Financial Markets
Victor Ricciardi
27. Can Humans Dance with Machines? Institutional Investors, High Frequency Trading, and Modern Markets Dynamics
Irene Aldridge
Part Seven THE APPLICATION AND FUTURE OF BEHAVIORAL FINANCE
28. Applications of Client Behavior: A Practitioner's Perspective
Harold Evensky
29. Practical Challenges of Implementing Behavioral Finance: Reflections from the Field
Greg B. Davies and Peter Brooks
30. The Future of Behavioral Finance
Michael Dowling and Brian Lucey
Discussion Questions and Answers
Index

Financial Behavior

Players, Services, Products, and Markets

Edited by H. Kent Baker, Greg Filbeck, and Victor Ricciardi

Financial Markets and Investments

Author Information

Edited by H. Kent Baker, University Professor of Finance and Kogod Research Professor, Kogod School of Business, American University, Washington DC, Edited by Greg Filbeck, Samuel P. Black III Professor of Finance and Risk Management, Penn State Erie, The Behrend College, Erie, PA, and Edited by Victor Ricciardi, Assistant Professor of Financial Management, Goucher College

H. Kent Baker is University Professor of Finance and Kogod Research Professor, Kogod School of Business, American University, and one of the most prolific finance academics.

Greg Filbeck is Samuel P. Black III Professor of Finance and Risk Management, Penn State Erie, The Behrend College, and serves as the Interim Director for the Black School of Business.

Victor Ricciardi specializes in current trends in behavioral finance as Assistant Professor of Financial Management, Goucher College, and Coordinator of Behavioral and Experimental Research for the Social Science Research Network (SSRN).

Contributors:

List of Contributors

Irene Aldridge
James E. Brewer Jr.
Peter Brooks
Elissa Buie
Pattanaporn Chatjuthamard
Marguerita M. Cheng
C. W. Copeland
Henrik Cronqvist
Benjamin F. Cummings
Greg B. Davies
Erik Devos
Paul Dolan
Michael Dowling
Harold Evensky
Steve Z. Fan
Deborah W. Gregory
John J. Guerin
L. Paul Hood Jr.
Nancy Hubbard
Danling Jiang
Rebecca Li-Huang
Brian Lucey
Duccio Martelli
Nathan Mauck
Peter J. May
Catherine McBreen
Christopher Milliken
James M. Moten Jr.
Jeroen Nieboer
Ehsan Nikbakht
John R. Nofsinger
Alex Plastun
Victor Ricciardi
April Rudin
Charles H. Self III
Alexandre Skiba
Hilla Skiba
Sameer S. Somal
Andrew C. Spieler
Michal Ann Strahilevitz
Joseph Tenaglia
Ivo Vlaev
Dave Yeske
Susan M. Young
Linda Yu

Financial Behavior

Players, Services, Products, and Markets

Edited by H. Kent Baker, Greg Filbeck, and Victor Ricciardi

Financial Markets and Investments

Reviews and Awards

"The introduction by the editors says that behavioral finance studies the psychological influences of the decision-making process for individuals, groups, organizations and markets. It seeks to explain not just individual investment behavior, but market inefficiencies, stock market anomalies, and other occurrences that contradict the assumptions of traditional finance. Among the latter are that people act rationally, make unbiased judgments, and maximize their self-interest â the rational underpinnings of the efficient market hypothesis." - Katherine Heires, GARP Risk Intelligence

"It is arguably one of the most comprehensive presentations on the way the new paradigm of behavioral finance impacts the financial landscape and the microeconomics of agency. The text is unusual in both the extensive ground it covers and its potential readership... Essential." - S. J. Gabriel (Mount Holyoke College), Choice Reviews Vol 55.