Advances in Behavioral Finance, Volume II / / ed. by Richard H. Thaler.

• Superior document: Title is part of eBook package: De Gruyter Princeton University Press eBook-Package Backlist 2000-2013
• MitwirkendeR: Barber, Brad M.,; Barberis, Nicholas,; Benartzi, Shlomo,; Campbell, John Y.,; Dabora, Emil M.,; Daniel, Kent,; Degeorge, François,; Froot, Kenneth A.,; Heaton, J. B.,; Hirshleifer, David,; Hong, Harrison,; Huang, Ming,; Jegadeesh, Narasimhan,; Lakonishok, Josef,; Lamont, Owen A.,; Michaely, Roni,; Odean, Terrance,; Patel, Jayendu,; Santos, Tano,; Shiller, Robert J.,; Shleifer, Andrei,; Stein, Jeremy C.,; Subrahmanyam, Avanidhar,; Thaler, Richard H.,; Thaler, Richard,; Titman, Sheridan,; Vishny, Robert W.,; Womack, Kent L.,; Zeckhauser, Richard,
• HerausgeberIn: Thaler, Richard H.,
• Place / Publishing House: Princeton, NJ : : Princeton University Press, , [2005]; ©2005
• Year of Publication: 2005
• Edition: Course Book
• Language: English
• Series: The Roundtable Series in Behavioral Economics ; 2
• Physical Description: 1 online resource (744 p.) :; 72 line illus. 79 tables.

This book offers a definitive and wide-ranging overview of developments in behavioral finance over the past ten years. In 1993, the first volume provided the standard reference to this new approach in finance--an approach that, as editor Richard Thaler put it, "entertains the possibility that some of the agents in the economy behave less than fully rationally some of the time." Much has changed since then. Not least, the bursting of the Internet bubble and the subsequent market decline further demonstrated that financial markets often fail to behave as they would if trading were truly dominated by the fully rational investors who populate financial theories. Behavioral finance has made an indelible mark on areas from asset pricing to individual investor behavior to corporate finance, and continues to see exciting empirical and theoretical advances. Advances in Behavioral Finance, Volume II constitutes the essential new resource in the field. It presents twenty recent papers by leading specialists that illustrate the abiding power of behavioral finance--of how specific departures from fully rational decision making by individual market agents can provide explanations of otherwise puzzling market phenomena. As with the first volume, it reaches beyond the world of finance to suggest, powerfully, the importance of pursuing behavioral approaches to other areas of economic life. The contributors are Brad M. Barber, Nicholas Barberis, Shlomo Benartzi, John Y. Campbell, Emil M. Dabora, Daniel Kent, François Degeorge, Kenneth A. Froot, J. B. Heaton, David Hirshleifer, Harrison Hong, Ming Huang, Narasimhan Jegadeesh, Josef Lakonishok, Owen A. Lamont, Roni Michaely, Terrance Odean, Jayendu Patel, Tano Santos, Andrei Shleifer, Robert J. Shiller, Jeremy C. Stein, Avanidhar Subrahmanyam, Richard H. Thaler, Sheridan Titman, Robert W. Vishny, Kent L. Womack, and Richard Zeckhauser.

Table of Contents

Frontmatter -- Contents -- Preface -- Acknowledgments -- List of Abbreviations -- Chapter1. A Survey of Behavioral Finance -- Part I. Limits to Arbitrage -- Chapter 2. The Limits of Arbitrage -- Chapter 3. How Are Stock Prices Affected by the Location of Trade? -- Chapter 4. Can the Market Add and Subtract? Mispricing in Tech Stock Carve-outs -- Part II. Stock Returns and the Equity Premium -- Chapter 5. Valuation Ratios and the Long-run Stock Market Outlook: An Update -- Chapter 6. Myopic Loss Aversion and the Equity Premium Puzzle -- Chapter 7. Prospect Theory and Asset Prices -- Part III. Empirical Studies of Overreaction and Underreaction -- Chapter 8. Contrarian Investment, Extrapolation, and Risk -- Chapter 9. Evidence on the Characteristics of Cross-sectional Variation in Stock Returns -- Chapter 10. Momentum -- Chapter 11. Market Efficiency and Biases in Brokerage Recommendations -- Part IV. Theories of Overreaction and Underreaction -- Chapter 12. A Model of Investor Sentiment -- Chapter 13. Investor Psychology and Security Market Under- and Overreaction -- Chapter 14. A Unified Theory of Underreaction, Momentum Trading, and Overreaction in Asset Markets -- Part V. Investor Behavior -- Chapter 15. Individual Investors -- Chapter 16. Naive Diversification Strategies in Defined Contribution Savings Plans -- Part VI. Corporate Finance -- Chapter 17. Rational Capital Budgeting in an Irrational World -- Chapter 18. Earnings Management to Exceed Thresholds -- Chapter 19. Managerial Optimism and Corporate Finance -- List of Contributors