Behavioural Corporate Finance: Existing Research and Future Directions

Fairchild, Richard J.

doi:10.2139/ssrn.1011976

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Behavioural Corporate Finance: Existing Research and Future Directions

18 Pages Posted: 11 Sep 2007

See all articles by Richard J. Fairchild

Richard J. Fairchild

University of Bath - School of Management

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

Fairchild, Richard J., Behavioural Corporate Finance: Existing Research and Future Directions (September 3, 2007). Available at SSRN: https://ssrn.com/abstract=1011976 or http://dx.doi.org/10.2139/ssrn.1011976