Abstract

https://ssrn.com/abstract=2385229
 


 



Chapter 1: Investor Behavior: An Overview


H. Kent Baker


American University - Kogod School of Business

Victor Ricciardi


Goucher College - Department of Business Management

January 25, 2014

Investor Behavior: The Psychology of Financial Planning and Investing. H. Kent Baker and Victor Ricciardi, editors, 3-24. Hoboken, NJ: John Wiley & Sons, Inc., 2014.

Abstract:     
“Investor Behavior: An Overview” is the introduction chapter for the book Investor Behavior: The Psychology of Financial Planning and Investing edited by H. Kent Baker and Victor Ricciardi that presents a historical perspective of investor psychology and theory. The field of investor behavior attempts to understand and explain investor decisions by combining the topics of psychology and investing on a micro level (i.e., the decision process of individuals and groups) and a macro perspective (i.e., the role of financial markets). The decision-making process of investors incorporates both a quantitative (objective) and qualitative (subjective) aspect that is based on the specific features of the investment product or financial service. Investor Behavior examines the cognitive factors (mental processes) and affective (emotional) issues that individuals, financial experts, and traders reveal during the financial planning and investment management process. In practice, individuals make judgments and decisions that are based on past events, personal beliefs, and preferences. The chapter also provides an overview of the emerging research topics covered in Investor Behavior and the abstract descriptions for the remaining 29 chapters of the book.

Number of Pages in PDF File: 24

Keywords: Investor psychology, personal finance, financial planning, trading and investing strategies, history of finance, investment theory, behavioral finance, behavioural finance, behavioral economics, history of investments, investment books

JEL Classification: A12, D81, G00, G30, G10, M00, M10, M41


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Date posted: January 27, 2014 ; Last revised: February 11, 2014

Suggested Citation

Baker, H. Kent and Ricciardi, Victor, Chapter 1: Investor Behavior: An Overview (January 25, 2014). Investor Behavior: The Psychology of Financial Planning and Investing. H. Kent Baker and Victor Ricciardi, editors, 3-24. Hoboken, NJ: John Wiley & Sons, Inc., 2014.. Available at SSRN: https://ssrn.com/abstract=2385229

Contact Information

H. Kent Baker
American University - Kogod School of Business ( email )
4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States
202-885-1949 (Phone)
202-885-1992 (Fax)
Victor Ricciardi (Contact Author)
Goucher College - Department of Business Management ( email )
1021 Dulaney Valley Road
Baltimore, MD 21204-2794
United States
410-337-6291 (Phone)
HOME PAGE: http://www.amazon.com/Investor-Behavior-Psychology-Financial-Investing/dp/1118492986
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