How Behavioural Biases Affect Finance Professionals

The European Financial Review, December-January 2017, pp. 25-29

5 Pages Posted: 17 Jan 2017

See all articles by H. Kent Baker

H. Kent Baker

American University - Kogod School of Business

Greg Filbeck

Pennsylvania State University

Victor Ricciardi

Goucher College - Department of Business Management

Date Written: January 2017

Abstract

Financial and investment professionals along with their clients reveal a wide array of psychological biases that can result in flawed judgments and decisions. Understanding these biases is important for these professionals to ensure their clients are receiving the best advice and information. The authors describe some common behavioral biases among financial planners, financial advisors, portfolio managers, financial analysts, and institutional investors. The article draws on some themes from the authors’ book Financial Behavior – Players, Services, Products, and Markets published by Oxford University Press in 2017.

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 Filbeck, Greg and Ricciardi, Victor, How Behavioural Biases Affect Finance Professionals (January 2017). The European Financial Review, December-January 2017, pp. 25-29. Available at SSRN: https://ssrn.com/abstract=2899214

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)

Greg Filbeck

Pennsylvania State University ( email )

286 Burke
Erie, PA 16563
United States

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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