Abstract

Citations (230)

Beta

Investor Psychology and Asset Pricing

David A. Hirshleifer
University of California, Irvine - Paul Merage School of Business

Journal of Finance, Vol. 56, No. 4, pp. 1533-1598, August 2001

Abstract:
The basic paradigm of asset pricing is in vibrant flux. The purely rational approach is being subsumed by a broader approach based upon the psychology of investors. In this approach, security expected returns are determined by both risk and misvaluation. This survey sketches a framework for understanding decision biases, evaluates the a priori arguments and the capital market evidence bearing on the importance of investor psychology for security prices, and reviews recent models.

Accepted Paper Series

Date posted: December 01, 2008 ; Last revised: December 04, 2008

Suggested Citation

Hirshleifer, David A., Investor Psychology and Asset Pricing. Journal of Finance, Vol. 56, No. 4, pp. 1533-1598, August 2001. Available at SSRN: http://ssrn.com/abstract=1288971

Export to: Export Citation What's this?

Contact Information

David A. Hirshleifer (Contact Author)

University of California, Irvine - Paul Merage School of Business ( email )

Irvine, CA 92697-3125
United States