Investor Psychology and Asset Pricing

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

Posted: 1 Dec 2008

See all articles by David A. Hirshleifer

David A. Hirshleifer

University of California, Irvine - Paul Merage School of Business; NBER

Multiple version iconThere are 2 versions of this paper

Date Written: 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.

Presentation Slides can be found here: https://ssrn.com/abstract=3181614.

Suggested Citation

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

David A. Hirshleifer (Contact Author)

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

Irvine, CA California 92697-3125
United States

HOME PAGE: http://sites.uci.edu/dhirshle/

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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