How Biases Affect Investor Behaviour

The European Financial Review, February-March 2014, pp. 7-10

4 Pages Posted: 23 Jun 2014  

H. Kent Baker

American University - Kogod School of Business

Victor Ricciardi

Goucher College - Department of Business Management

Date Written: 2014

Abstract

Investor behaviour often deviates from logic and reason, and investors display many behaviour biases that influence their investment decision-making processes. The authors describe some common behavioural biases and suggest how to mitigate them.

Keywords: Investor psychology, personal finance, financial planning, trading and investing strategies, biases, investment theory, behavioral finance, behavioural finance, behavioral economics

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

Suggested Citation

Baker, H. Kent and Ricciardi, Victor, How Biases Affect Investor Behaviour (2014). The European Financial Review, February-March 2014, pp. 7-10. Available at SSRN: https://ssrn.com/abstract=2457425

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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