Behavioural Corporate Finance: Existing Research and Future Directions
18 Pages Posted: 11 Sep 2007
Date Written: September 3, 2007
Abstract
Behavioural Corporate Finance (BCF) examines the effects of managerial and investor psychological biases on a firm's corporate finance decisions (such as investment appraisal and capital structure). In contrast to the well-developed research in behavioural finance (which examines the effects of investors' biases on the behaviour of financial markets), the emerging research in BCF is relatively young. In this paper, we review the existing research to date in BCF, and suggest areas for future development.
Keywords: Behavioural Corporate Finance
JEL Classification: G31, G32
Suggested Citation: Suggested Citation
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