Abstract

http://ssrn.com/abstract=1678414
 
 

Citations



 


 



Modern Finance vs. Behavioural Finance: An Overview of Key Concepts and Major Arguments


Panagiotis Andrikopoulos


De Montfort University - Department of Accounting and Finance

June 1, 2007

The ICFAI Journal of Behavioural Finance, Vol. 4, No. 2, pp. 53-70, 2007

Abstract:     
Modern Finance has dominated the area of financial economics for at least four decades. Based on a set of strong but highly unrealistic assumptions its advocates have produced a range of very influential theories and models. Nonetheless, in the last two decades a new academic school of thought has emerged that refutes the key assumption of a “homo economicus”; an assumption that represents the cornerstone for the development of the theory of efficient markets. The first empirical evidence against efficient markets in the mid-eighties signalled the beginning of a “fierce” debate between these two schools of thought. This paper gives an overview of the key arguments of these two distinctive academic doctrines.

Keywords: Behavioural Finance, Market Efficiency, Over-reaction, Under-reaction

JEL Classification: G11, G12, G14

Accepted Paper Series


Not Available For Download

Date posted: September 17, 2010  

Suggested Citation

Andrikopoulos, Panagiotis, Modern Finance vs. Behavioural Finance: An Overview of Key Concepts and Major Arguments (June 1, 2007). The ICFAI Journal of Behavioural Finance, Vol. 4, No. 2, pp. 53-70, 2007. Available at SSRN: http://ssrn.com/abstract=1678414

Contact Information

Panagiotis Andrikopoulos (Contact Author)
De Montfort University - Department of Accounting and Finance ( email )
The Gateway
LE1 9BH
Leicester
United Kingdom
+44(0)116 250 6331 (Phone)
+44(0)116 251 7548 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 441

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.375 seconds